Effective Nov. 8, 2019, all producers can drill new conventional oil wells without being restricted by production limits. Existing producing wells will remain under curtailment.

This measure will drive positive investment, lead to increased drilling activity, and support economic growth in communities across Alberta.

“Companies are currently making investment decisions and we want those dollars and jobs to be in Alberta. We are doing everything we can to help.”

Sonya Savage, Minister of Energy

“I strongly support the government’s decision to ease curtailment of conventional oil.‎ Without the ability to increase production, new wells will simply not be drilled. This change is crucial to the tens of thousands of service sector workers who otherwise faced a bleak winter of unemployment.”

Gwyn Morgan, retired founding CEO of Encana Corp.

These adjustments provide flexibility for industry while aligning with the objective of curtailment – protecting the value of Alberta’s oil by maintaining a balance between production and takeaway capacity.

This update to the existing curtailment policy is in-line with other recent enhancements made by government. This includes the addition of special production allowances, which give operators curtailment relief for production shipped by new rail capacity.

Quick Facts

  • This policy applies to all conventional oil producers.
  • Existing wells will remain subject to the curtailment policy.
  • In September 2019, Alberta produced approximately 480,000 barrels per day of conventional oil.
  • Of this, 90,000 barrels per day were from curtailed operators.
  • According to the Canadian Association of Oilwell Drilling Contractors, each working drilling rig supports an additional 145 direct and indirect jobs.

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