Alberta government imposes oil production cuts for province

Alberta’s premier is imposing industrywide oil production cuts in the Canadian province.

Premier Rachel Notley announced Sunday that output will be lowered 325,000 barrels a day in January to address a storage glut that she blames on a lack of pipelines. The government says the reduction will be evaluated monthly.

Alberta produces 3.7 million barrels a day, but that is 190,000 barrels more than can be shipped. About 35 million barrels is sitting in storage, and the oversupply results in the province’s crude selling for around $10 a barrel, a fraction of what other world producers get.

Notley says Canada‘s economy is losing $80 million Canadian (US$60 million) a day.

Canada has the world’s third-largest oil reserves and is the top source of foreign oil for the U.S.