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“There’s actually been quite a lot of conversation about this,” said Tristan Goodman, president of the Explorers and Producers Association of Canada. “It’s actually been around for several weeks and I think folks are really feeling the pinch.”

Photo by Leonhard Foeger/Reuters files

A spokesperson for Alberta Premier Jason Kenney said he has been discussing the idea of a cartel for several weeks with various U.S. government officials and politicians, saying it was a matter of energy security.

“It’s time for North America to stand up against the OPEC dictatorships that continue to dump supply into the market in an effort to take North American producers out,” said Christine Myatt, press secretary for the premier.

On Thursday, Deputy Prime Minister Chrystia Freeland said she’s talked with U.S. Secretary of State Mike Pompeo about the disruption in the oil market caused by Russia and Saudi Arabia. She also noted that she is engaged with Kenney on the issue, noting that the Alberta Premier’s conversations with U.S. officials have been “very helpful.”

The impetus to form a cartel started ironically after OPEC injected volatility into the market in early March, when Saudi Arabia announced it would raise its production beginning in April. That hammered prices and immediately ramped up financial pressure on high-cost producers, particularly in North America.

It's time for North America to stand up against the OPEC dictatorships that continue to dump supply into the market in an effort to take North American producers out Christine Myatt

Grant Fagerheim, chief executive of Calgary-based Whitecap Resources, said that “it would take a monumental effort” to form such an organization, but it’s worth exploring.