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Many solutions possible to close growing oil price gap

Last Updated Nov 15, 2018 at 5:42 pm MDT

(Tom Ross - 660 NEWS)

CALGARY (660 NEWS) — With a price differential harming the resource market in Alberta and across Canada, there have been some different ideas proposed on how to tackle it.

Most recently, the CEO of Cenovus Energy, Alex Pourbaix, suggested we should slow oil production in order to limit supply and raise prices.

But the company’s competitors were quick to reject the plan. Suncor Energy said they have no exposure to the differential between Western Canadian Select and West Texas Intermediate, while Husky Energy said they believe in a “market-based solution.”

As it stands now, WCS is trading at less than $15 a barrel, while WTI is at close to $57.

Alberta Premier Rachel Notley agrees with the stance the differential is a significant barrier, but there’s a lack of consensus among the industry.

“Meanwhile, we have a suite of options at our disposal that we are currently working with to help chip away at that differential, and so we’re going to continue to do that, and we’re going to have conversations and discussions with the players about the best way to move forward,” she said Thursday during a media conference at the University of Calgary.

Notley said they are working “furiously” on the issue, but also the government is stuck between a rock and a hard place with many possibilities in front of them.

Over the last few weeks, Notley has suggested increasing rail transport to boost market access while pipeline projects are held up.

She said that remains one of the options, but no matter what, one thing is abundantly clear.

“We can’t have it racing out of the ground at ten dollars a barrel for a really long period of time, because it’s Albertans’ resources and we know we need to do better.”