Greg Clark and The Alberta Party calls for a curtailment of oil production
“The Alberta Party’s Greg Clark says the current price of bitumen is creating a ‘national crisis,’ calling for a royalty holiday until oil prices improve.
Clark says it would only be a short-term solution.
‘Desperate times call for desperate measures,’ Clark told 660 NEWS. ‘We are literally giving away our most valuable natural resource for free, I think it’s time for the provincial government to consider curtailing production for at least a short period of time, to increase prices and keep Albertans working.’
The Calgary-Elbow MLA says it’s not about sending a message: it’s about the economics surrounding supply and demand.
‘If you reduce supply, you will increase the price,’ he said. ‘What really needs to happen, longer-term of course, we need to build pipelines. We need them urgently, we’ve needed them for a long time and both the provincial and federal governments have really let us down in land-locking Alberta’s oil.’
He says the dramatic steps would ensure Albertans get the best oil prices possible.
‘The differential in the price that Alberta gets is $40 lower than what we see as the headline price for WTI,’ Clark said. ‘This week Alberta’s heavy oil was trading at $13 dollars a barrel… that is half the price of Coca-Cola at the same volume. It’s just insane that we’re getting so little.’