May 19, 2024
As OPEC's tentative deal falls short, Canadian producers fear 1.7 million barrels a day will be shut in
Canadian crude is priced as “some of the cheapest barrels on the planet.
Canadian crude is priced as “some of the cheapest barrels on the planet.

CALGARY — As OPEC member countries and Russia were making a deal to cut 10 million barrels of daily oil production Thursday, RBC Capital Markets analysts expect Canadian oil producers to be forced to cut back roughly a third of total domestic oil production — or 1.7 million bpd.

OPEC members and Russia have pushed other countries to cut output too, and a historic meeting of G20 energy ministers is planned Friday, which is expected to include Canada’s Natural Resources Minister Seamus O’Regan.

The minister was in meetings Thursday with his counterparts in the U.S. and Mexico in preparation for the meeting, according to a statement.

On Thursday, O’Regan also spoke with Alberta Energy Minister Sonya Savage, Saskatchewan Energy and Resources Minister Bronwyn Eyre, and Newfoundland and Labrador Natural Resources Minister Siobhan Coady about taking a “united approach” heading into Friday’s G20 meeting.

“Canada is heading into an unprecedented meeting of G20 Energy Ministers this Friday, and a united approach puts us in the best position to support our workers and our economy,” O’Regan said in an email, noting that the oil price collapse has had a “devastating impact on Canada’s oil industry and its workers.”

Alberta’s energy minister was also taking part in Thursday’s negotiations among OPEC and other oil-producing countries about curbing bloated global supplies.