Jason Kenney calls for voluntary reduction to oilsands output

CALGARY (660 NEWS) – Alberta’s Leader of the Opposition was quick to call on Premier Rachel Notley for an immediate response to the oil price crisis and is asking for an emergency debate in the Legislature.

Jason Kenney says he would like oil producers to voluntarily reduce their output given that it’s costing the Canadian economy more than $100-million dollars a day.

“This disaster is the result of failure by governments and the success of a foreign-funded campaign of special interests to land-lock Canadian energy. Justin Trudeau’s veto of the Northern Gateway pipeline, his killing Energy East through massive new regulations, his surrender to President Obama’s veto of Keystone XL and his failure to overcome the obstruction around the Trans Mountain expansion all together is why we’ve gotten to the situation where we’re giving our oil away,” he said.

“Alberta oil is now worth less than a bottle of water in terms of its volume, this is shocking, and our American friends are making out like bandits as a result of this give away of Alberta’s family jewels. It must stop,” said Kenney.

READ MORE: Alberta Party calls for a curtailment of oil production

He said the province needs the Prime Minister to remove his “No More Pipelines” act, otherwise known as Bill C-69, he wants the federal court’s decision on Trans Mountain appealed, he wants to work with the U.S. administration on overcoming the barriers on Keystone XL and wants measures in place to deal with the glut in Alberta.

According to Kenney, producers did what the government told them to do in increasing production and they were assured there would be pipelines to get that oil to market.

Kenney says the government should leave the door open to mandatory legislation that would cap companies and force them to reduce their output, but he says voluntary means are preferable.

He’s calling it a short-term solution and one that would hopefully get oil back up to $35 dollars a barrel.

Earlier on Monday, Premier Rachel Notley had appointed three envoys to work with the energy industry on solutions to help improve prices for Alberta, one of which is her former chief of staff Brian Topp.

Topp has been a vocal opponent to the energy industry who has called on Canada to produce a “great deal” less of hydrocarbon energy.

“This is part of their (NDP) philosophy and I don’t think Mr. Topp is going to get very far trying to negotiate with energy companies when he comes to the table opposing the very industry that is getting slammed right now,” said Kenney.

While he didn’t specify as to which ones, Kenney says he’s been meeting with stakeholder groups and energy company CEOs who appear to be on board with the idea.

While a reduction in output could mean some jobs, he says the longer-term threat to the Alberta economy is undermining investor confidence.

“Nobody is going to be investing in a jurisdiction that is selling its oil and one quarter the global price,” said Kenney.

The Calgary Lougheed MLA plans on reaching out to the government, stakeholders and the 3 envoys to help improve the price differential.

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