Transport bottlenecks have long been a frustration for operators working in Alberta, Canada’s main oil-producing province. But Alberta’s provincial government is using a new policy tool to address the matter.
According to Oil & Gas Journal, the provincial administration is eager to ensure that oil operators working at fields in Alberta have options for boosting their exports. To that end, it will start allowing producers to request an exemption from curtailment limits sometime in December.
This move opens the door for local operators to deliver extra barrels to the market by rail, and it is in line with recommendations made by some industry groups. It allows producers to request a “special allowance” – that is, an exemption from the curtailment limits applied to crude oil shipped by rail and not designated for export via pipeline – rather than wait for access to a pipeline.
Senya Savage, Alberta’s Minister of Energy, praised the initiative and highlighted the possibility for future progress and growth, saying: “The special allowance program will protect the value of our oil by ensuring that operators are only producing what they are able to move to market. Pipeline delays ultimately have constrained market access and dampened investment in our oil sector.”