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CALGARY, Alberta/WINNIPEG, Manitoba — Canadian oil producers are raking in the highest revenues in five years thanks to strong global oil prices and Alberta’s production cuts, but government intervention has hamstrung their spending abilities, encouraging many to buy back shares and pay down debt.

Canada’s main crude-producing province effectively became a mini-OPEC this year after the Alberta government imposed production quotas to relieve pipeline congestion and drain a glut of crude in storage.

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The move boosted prices dramatically but leaves Canadian producers starved of opportunities to grow output – usually the go-to strategy of any energy firm flush with cash.

Canadian oil producers' coffers are the fullest they have been since 2014

The oil patch’s caution has contributed to a slow pace of deal-making, despite plenty of assets being up for sale. Several companies that announced big deals last year saw their stocks slide.

The energy sector’s cash flow is projected to be $52.7 billion this year, the highest in five years, yet spending is declining year-on-year, said ARC Financial analyst Jackie Forrest.