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.
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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.