"Many of these policies (were) supported either by acquiescence or actively by the NDP government", said Kenney.
Reuters technical commodity analyst Wang Tao said WTI could soon test support at $51.75 per barrel, while Brent was threatening to drop below $60 per barrel again soon.
Global prices crashed last month by the most in more than a decade, a plunge that battered producers in Alberta in particular amid surging oil-sands output, a shortage of pipeline space and heavy USA refinery maintenance. Once the storage glut is reduced, the cuts will narrow to just 95,000 bpd, which will stay in place through the duration of 2019. Those cuts added up to about 150,000 barrels a day, according to Explorers and Producers Association of Canada.
Only nine producers were over the 10,000-bbl/d production level which Alberta is exempting from production curtailment. The companies hope that reducing production will boost regional oil prices as well as their profitability.
"Mandatory curtailment is not the good solution, but it may be the only one available to the government".
On Monday, Alberta Energy Minister Marg McCuaig-Boyd said her government had been in contact with Saskatchewan. At that point, the USA market - our only export market - seemed to realize that Alberta was in a bind and that we had no alternative but to sell to them cheap. "The measures Premier Notley announced [Sunday] will help balance the market in the short term until new rail and pipeline capacity comes on stream late next year and into 2020".
The Railroad Commission of Texas did something similar in the 1930s, before OPEC was created, because large oil producers at the time were anxious that independent drillers were over-supplying the market.
Not all companies are affected by the cuts.
There is another step that the provincial government should take to ensure that Albertans get a fair price for their resources now and in the long run.
"They're not as big a player as us but they're still a player", McCuaig-Boyd said.
The statement goes on to say this is an extreme case in need of curtailment. She earlier stressed that now Alberta's resources are given away "for next to nothing", referring to the province's crude selling for around $15 a barrel. The reductions will erase some of the inventory overhang, allowing the cuts to be phased out. Alberta also has many salt and gas domes that could be used to increase our petroleum storage capacity. "Line 3 only clears the market for three months before we find ourselves back in this situation again", Notley told Maclean's.
It's worth noting that years of pipeline fights from environmental groups, local communities and First Nations are bearing some fruit.
Alberta is also planning on buying as many as 80 locomotives and 7,000 rail tankers - expected to cost hundreds of millions of dollars - to move the province's excess oil to markets and address the pipeline bottleneck.
Official US government oil production and inventory data is due later on Wednesday.