Province scraps production limits on new conventional oil wells
EDMONTON -- The provincial government is giving oil producers a break on curtailment rules by lifting the restrictions on new conventional oil wells.
The move is meant to increase drilling activity and drive investment in the sector.
"As companies are in the process right now of making their future investment decisions, we want those investment dollars and jobs to be here in Alberta," energy minister Sonya Savage said Friday.
The new policy applies to conventional oil production, including fracking, and is now in effect.
"We have been told by producers that some of them, they could bring on hundreds of new wells but for the curtailment policy, so we'll hold them to their words to bring this activity on and create those jobs," Savage said.
Savage said each new well drilled could create up to 145,000 direct and indirect jobs.
The government said it will also continue to fight for pipelines and market access.
The UCP eased the curtailment rules in October, allowing special allowances for increased production if the additional oil is moved by rail.
Production curtailment is expected to continue through December 2020, but production limits were increased in October.