OPEC Meeting: Statement from Minister Savage

OPEC Meeting: Statement from Minister Savage

Minister of Energy Sonya Savage issued the following statement on yesterday’s OPEC+ meeting:

“Yesterday Alberta participated in a video meeting of the Organization of the Petroleum Exporting Countries (OPEC).

“We are cautiously pleased to see that OPEC+ has agreed to reduce production by 10 million barrels per day.

“During the past weeks, we have met with energy workers and employers who have been the hardest hit during this crisis. We will always stand up for Alberta’s energy workers, whether at OPEC+ or in the face of those who wish to see our industry collapse.

“Reliable energy is the lifeblood of any modern economy, and Alberta is home to the third largest oil reserves in the world. Our energy sector represents almost one-tenth of Canada’s gross domestic product and supports over 500,000 jobs across the country.

“The decision to surge supply in the face of the collapse of energy demand triggered by COVID-19 has endangered jobs throughout Alberta and Canada, while forcing North American storage to near capacity.

“The agreement to implement production limits by OPEC+ brings global energy producers in line with measures that Alberta has reluctantly taken since January 2019.

“For our part, we have already seen Alberta producers voluntarily lower their production and cut their capital spending due to decreased demand because of the COVID-19 pandemic.

“However, demand will return as economies around the globe recover from this pandemic. Life will return to normal. In the interim, we hope that the measures taken by OPEC+ will stabilize the global price of oil and prevent further stress to energy workers in Alberta.

“Albertans are resilient. Our energy sector has seen high and lows in the past and it has prevailed.

“We will continue to take every action necessary to ensure that the sector is in the best possible position for recovery.”