Article content continued

“We’ve got to cut the differential in half,” Kenney said at a Sunday news conference.

The UCP had proposed 10 per cent production cuts, but Kenney said he didn’t want to “quibble over the numbers.”

Mandel said the NDP decision was several months too late.

“It’s about time the provincial government did something,” he said. “The time has come to take responsibility for the inaction by this government … it’s been frustrating.”

The province pegs losses due to the oil discount at around $80 million per day, though estimates vary.

No new legislation required The province is directing the Alberta Energy Regulator (AER) to launch the system of curtailment through existing legislation. The minister of energy will have authority to set monthly levels through a cabinet order.

Cuts will be determined on an operator basis, not by well or project. The baseline will be calculated by averaging the six months of highest production level over the past year for each company.

The first 10,000 bpd for each company will be excluded, said the province.

Kenney said he’s concerned that exemption level will still hurt small producers. The UCP had suggested a higher threshold, limiting cuts to producers making more than 25,000 bpd.

He also said he believes the move will prevent job losses.

“A continued $40 price differential will potentially result in tens of thousands of layoffs,” he said.

Crude-by-rail to ship out 120,000 bpd in 2020

On Wednesday, Notley announced Alberta would increase crude-by-rail capacity by an additional 120,000 bdp, starting in late 2019. The full complement of rail cars would ship out in 2020.