” Its good. We welcome any news that brings stability to world oil markets, “said Natural Resources Minister Seamus O’Regan on Sunday.
The deal between the deal, Russia and other countries came late last week and followed a supply battle that started last month when Russia refused to cut production due to the drop in demand due to the COVID-19 pandemic, which prompted Saudi Arabia to increase its oil production and reduce its price.
OPEC and oil nations agree to cut record oil production amid coronavirus pandemic
Videoconference negotiations took place last week, which were attended by representatives of the Alberta government.
Alberta Premier Jason Kenney, who commented on the negotiations on Saturday and hopes for their success, said his province had not been asked to restrict production.
“We have made it very clear to OPEC, the United States and other countries around the world that Alberta has already cut production in the past 15 months and that we cannot really influence world prices because we didn’t have access to the world market. . We don’t have these pipelines to the coast, “Kenney told reporters during a conference call on the response to the pandemic in Alberta.
Oil and gas sector writes open letter to Canadians asking for financial assistance
“Even if we wanted to increase production, we would be capped at around four million barrels a day that we could ship via existing pipelines and crude oil by rail,” he added.
[ Sign up for our Health IQ newsletter for the latest coronavirus updates ]
The deal, which was finalized on Sunday, would allow Mexico to cut only 100,000 barrels a month, which was a sticking point after last week’s talks.
Mexico’s energy minister tweeted that the group of nations had agreed to cut 9.7 million barrels a day to start on May 1, and energy officials from other countries shared similar information on Sunday.
LEARN MORE: Canada and the G20 agree on the need for a stable oil price; mom on calls to cut production
O’Regan, who participated in a conference call with G20 energy ministers on Friday, declined to speculate on whether Canada could consider cutting production as part of the broader multilateral effort , but said that it is no secret that production has dropped in Newfoundland, Alberta and Saskatchewan.
Prime Minister Justin Trudeau would also not say Friday if Canada would take steps to reduce production, although he noted that Alberta has already reduced production and that Canada “will continue to seek to ensure that other countries are doing their part. ”
Family physicians in Alberta still available despite COVID-19 pandemic
O’Regan said Sunday that Canada is committed to price certainty and economic stability.
“The federal government is deeply concerned about the volatility of oil prices and the impact on thousands of Canadian energy workers and their families,” the email said.
Kenney chastised on Saturday the “reckless actions of the Saudis and the Russians” which he said have inundated world stocks to the point that extremely low prices will continue for at least 18 months.
Coronavirus: Parliament adopts COVID-19 bill on wage subsidies
“There is simply no coating,” he said, adding that he was awaiting news of the federal plan to help the energy industry.
O’Regan said last week that the long-awaited bailout would contain measures to improve “liquidity” in Canada’s energy sector and will arrive soon, but he did not say when.
Coronavirus outbreak: Alberta will send hundreds of thousands of PPE to other provinces
Canada is the world’s fourth largest producer of oil, extracting some 4.9 million barrels per day in February.
A Canadian government source told Reuters that O’Regan had not officially agreed to a spending cut policy as it was the responsibility of the country’s energy-producing provinces.
The source requested anonymity given the sensitivity of the situation.
– With Reuters files
See the link »
© 2020 The Canadian Press