Alberta announces oil production increases for May, June

Pumpjacks are shown pumping crude oil near Halkirk, Alta., on June 20, 2007. Drilling companies are continuing to move rigs from Western Canada into the more active oilfields of the southern United States. THE CANADIAN PRESS/Larry MacDougal

The province has announced that they are once again allowing an increase in the amount of oil that can be produced.

It says production levels in May will increase by 25,000 barrels per day, and 50,000 in June, which will bring the total to 3.71 million barrels per day.

The increase, since curtailment began on January 1, is now 150,000 barrels a day.

The province says the limits are based on monitoring a number of indicators and recognizing that less diluent is needed in warmer weather for bitumen to flow in pipelines, meaning more capacity.

In a statement, Premier Rachel Notley says they hope to provide more certainty for producers who have been working with them to protect jobs.

“This temporary policy has been critical to reducing the oil price differential while we move ahead with our medium-term plan to ship more oil by rail and lead the long-term charge for new pipelines as we fight to get full value for the resources owned by all Albertans”.

The province says increased production limits will match what can be shipped via pipeline and rail.

Shipments scheduled in its crude-by-rail program start in July, ramping up to 120,000 barrels per day by 2020.

Notley introduced curtailment to lessen the price differential for Western Canadian Select against oil sold on world markets.