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Curtailment relief for Alberta oil companies that ship crude-by-rail

Last Updated Oct 31, 2019 at 10:06 am MDT

The National Energy Board says crude-by-rail exports from Canada rose to a record 327,229 barrels per day in October. In this Nov. 6, 2013, file photo, a BNSF Railway train hauls crude oil near Wolf Point, Mont. THE CANADIAN PRESS/AP/Matthew Brown, File

CALGARY – The Alberta government is easing production limits on oil companies prepared to move more of their product on trains.

Companies had asked the government to ease the limits in exchange for shipping more crude by rail.

The province said the short-term measure will help deal with a lack of pipelines that has squeezed Alberta’s energy sector.

In January, the former NDP government put a cap on the amount of oil the industry could produce to reduce a glut that was driving prices down.

WATCH: Notley announces plans to move oil by train

The new special allowance will come into effect in December.

The amount of oil companies will be allowed to produce in December is set at 3.81 million barrels up from 3.56 million barrels a day when the program first started in January.