Kenney calls for government-enforced cap on oil production
The self-proclaimed free market conservative wants provincial intervention
Opposition leader Jason Kenney is calling for the provincial government to enforce a 10 per cent production curtailment in Alberta to deal with the ongoing oil price differential.
The United Conservative Party leader said at a news conference Wednesday that he doesn’t take the decision lightly, but after having consulted industry experts, said it needed to be done.
“I believe government intervention in markets should generally be avoided,” Kenney said. “Which is why I was initially opposed to the idea of mandatory curtailment when it was first floated a few weeks ago.”
Kenney said as of Wednesday, Alberta oil was selling at
about $12 per barrel, about $40 less than Texas crude. He also said the curtailment won’t eliminate the $40 differential — just bring it down to around $20.
A self-proclaimed free market
conservative leader whose party is expected to mount the strongest challenge to the NDP in the 2019 election, said his proposal wasn’t a political ploy to make his caucus look good.
Jason Kenney speaks at an Edmonton Chamber of Commerce lunch on Nov. 14. On Wednesday, the Opposition leader called for the Alberta government to enforce mandatory cuts to oil production.