Premier Rachel Notley, reacting to a proposed $100-million class action lawsuit over Alberta’s beer subsidies, says her government will continue to find ways to support its homegrown industry. Premier Notley updates reporters on the progress of the Kinder Morgan pipeline in Edmonton on Wednesday, May 16, 2018.THE CANADIAN PRESS/Jason Franson

Notley, cabinet set wheels in motion to start cutting oil production

Alberta premier wants to back off production by 8.7 per cent, starting January 1

Alberta Premier Rachel Notley and her cabinet have put the legal wheels in motion to begin cutting oil production.

Notley is meeting with her cabinet to issue the necessary orders to direct oil producers to begin backing off on oil production by 8.7 per cent starting Jan. 1.

The premier announced the cut on Sunday.

The mandatory reductions will be reviewed monthly but are to continue until the end of next year.

She says the glut in reserves driving down prices for Canadian oil to bargain-basement levels needs to be addressed before producers begin taking more drastic steps such as slashing capital projects or laying off workers.

Notley says a lack of pipeline capacity is a big part of the problem and she has once again called on Prime Minister Justin Trudeau’s government to do more than just send sympathy.

The premier announced last week that the Alberta government will purchase rail cars to get more oil moving while the province waits for the Enbridge Line 3 and the Trans Mountain expansion to the B.C. coast to come on line.

The Canadian Press

Like us on Facebook and follow us on Twitter

Just Posted

Cowichan Brain Injury Society struggling; break-in makes things worse

“Sometimes it seems like I take one step forward and two back”

Shawnigan Hills parkrun report for Dec. 7

Westernmost parkrun welcomes 100th different finisher

Local wrestlers dominate Cougar Invitational

Results representative of sport’s growth in Cowichan Valley

Province steps up with $250,000 for new Clements Centre facility in South Cowichan

New building will replace aging, smaller one in Valley’s south end

VIDEO: Feds give update on flying clearance for Santa’s sled

Transport Minister Marc Garneau has this message for the country’s children

Indigenous mother wins $20,000 racial discrimination case against Vancouver police

Vancouver Police Board ordered to pay $20,000 and create Indigenous-sensitivity training

Sentencing for B.C. father who murdered two young daughters starts Monday

The bodies of Aubrey, 4, and Chloe, 6, were found in Oak Bay father’s apartment Dec. 25, 2017

B.C. vet talks tips for winter travel with pets

Going to see the vet the day before a trip is never a good idea

Suspect steals 150 pairs of cosmetic contacts from Nanaimo party supply store

Incident happened at Pattie’s Party Palace on Rutherford Road on Thursday

B.C. driver has car impounded for speeding to church

The driver, who said he was late to church, was clocked travelling 150 km/hr in a 100 km/hr zone

Cranbrook man calls for ban after dog caught in leg hold trap

Black Lab loses teeth after biting at trap in pain and panic

B.C. Crown corporation immune from taxation, but may still have to pay GST: court

British Columbia Investment Management Corporation may still be on hook for GPS payments

‘He was good for the West:’ Sadness, surprise in Saskatchewan over Scheer

Saskatchewan Premier Scott Moe and his predecessor, Brad Wall, both thanked Andrew Scheer

Most Read