United Conservative Leader Jason Kenney wants the Notley government to do more about the oil price differential.
“I am calling on the government of Alberta to act immediately to introduce mandatory curtailment of 10 per cent of Alberta’s oil production, I do not make this recommendation lightly,” said Kenney.
Kenney said the legislated cut in oil production would save jobs and stop the fire sale of Alberta oil.
According to a press release from the UCP, market analyst suggest that the curtailment would result in an immediate increase in the price for Alberta oil, and would allow for the current 35 million barrels in storage to be cut in half over several weeks.
Premier Rachel Notley announced on Wednesday that her government would buy two additional train sets to transport more oil.
Kenney believes that additional rail cars is only part of the solution.
“We don’t have a year to wait at a $40 differential, so we have to take some extraordinary action right now in our view,” said Kenney. “In the last couple of weeks I’ve been meeting non-stop with industry leaders and very few of them have said they’re looking for government assistance on additional rail cars.”
The curtailment regulations Kenney is suggesting would end after a year of coming into force.