LEGISLATIVE ASSEMELY
ALBERTA
Hon Jason Kenney PC MLA
Leader, Her Majesty’s Loyal Opposition
Hon. Rachel Notey
Premier of Alberta
307 Legsiature Bulding
10800-97 Avenue
edmonton, AB
5k 206
November 18,2018
ear Premier,
Uke you, 1am deeply concerned thatthe price eifferetia for Alberta ol has reached criss proportions
Itis unacceptable that Albertans are losing neary $100 milion per day by massively underseling our
‘mast important aset
This is ultimately the result of a fallureof governments to ensure new pipelines, which sin par the
result of a ong term campaign by foreign funded interests to land lok Canadian energy. The decision of
the federal government to veto the approved Northem Gateway Pipeline, the same governments new
regulatory mandates that klled Energy East, President Obama's veto of Keystone XL, and the campaign
te obstruct the Trans Mountain expansion have al contributed to this massive los of wealth that
belongs to Albertans. Thiscrisis will bcome more severe if the federal government's ll C-69 becomes
law, creating even more uncertain for prospective future pipeline projects.
\We also know that glut in Abert il inventories has resulted in pushing the price cifferenta to
unprecedented levels. Some are caling for government intervention to mandate curtaiment of oil
production untiliaventories stabilize andthe price diferetial is significantly reduced,
Much of the current price ferential isthe result of fallure of government pokles,afallure which Is
‘damaging the public interest by reducing government revenues by billons of dolas. | therefore believe
that the Government of Alberta should keep the door open to using statutory tols to control
production inthe short term,
However, | believe it s preferable for the energy industry to act voluntary in controling production to
_avold the precedent and potential unintended consequences of government action. lam therefore
calling on Canadian upstream il producers to actin the public intrest by voluntarily reducing thelr
production until inventories have been cleared, and the price differentia alleviated. There appears to be
'2 consensus inthe industry that such ation would requle a cumulative reduction of some 250,000
LEGISLATURE OFFICE oh Pia abel Bar 8824-167 Set Warn Abt | ETbarrels per day. Several producers have already commendably acted to reduce production voluntarily.
‘These efforts should be matched by al producers. The resource that they are developing belongs to al
[Albertans who have a right to expect that producers will not act na way that makes Alberta poorer.
| applaud your announcement today creating an advisory group to scope out options forthe
Government of Alberta. AS | have said inthe pas, believe thatthe vital economic interests of Albertans
should transcend partisan polis. | would therefore offer, on behalf ofthe Official Opposition, to work
‘with your government to seek apolitical consensus on the way forward. In this respect would be
happy to meet with you, your Minister of Energy, or the recently appointed taskforce to discuss policy
options
hope that all concerned, both industry and poltical leaders, willact to defend the value ofa
‘tremendous resource that belongs to both current and future generations of Alberta
Yours sncersy,
Hon Jason Kenney PC ML
Leader, Her Majest/' Loyal Opposition
ce Hon Robert Wanner. Speaker. Legislative Assembly of Alberta
David Kran Leader, Alberta Uberal Party
stephen Mandel, veaer, alberta Party
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