Alberta Cuts Oil Output by 1 Million Barrels Per Day: Minister

(Reuters) — The Canadian province of Alberta has cut oil output by a quarter or about 1 million barrels per day (bpd), Alberta’s energy minister, Sonya Savage, has informed OPEC. 

The output cut by Alberta, home to the world’s third-largest oil reserves, represents about a quarter of its production, Savage said in an interview to be published in the April/May issue of the OPEC Bulletin.

“The Minister stated there is currently no point in announcing additional output adjustments, as production has come down on its own,” an OPEC statement said. 

“Additionally, the province already had mandated adjustments in place prior to COVID-19 due to a lack of pipeline capacity and inability to move the oil out of the producing region.”

Goldman Sachs on Tuesday said Canada may announce additional production cuts if oil prices continue to remain low. 

The Organization of the Petroleum Exporting Countries and other large oil producers in April agreed to cut output by almost 10 million bpd, or 10% of global oil production, in May-June.

Savage said she hoped Alberta would continue to be part of future talks between OPEC and major oil producers to balance the oil markets.

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