Overproduction

We are on the transition period from 2018 to 2019. 

At the end of 2018, the constant drum beat from Albertans was that Alberta-produced hydrocarbons are "locked in" and suffering in price because the product cannot get to market.  Well, this is patently not true.  Fossil fuels from Alberta continue to flow to markets at an unprecedented rate. 

But the price had plunged.  Why?

Basic economics -- supply and demand.  When there is a glut of product, the price goes down.......

Regardless, the cry has been fore increased pipeline capacity.  Even in the face of a world-wide oil glut.

So, the Alberta government moved legislatively to cap production.  In other words, sin of all sins: to "leave product in the ground".  Even a strategy approved by the provincial conservative government in waiting.

In the first few days of 2019, as the caps move into effect, low-and-behold, the price received for Alberta product has increased dramatically. 

The differential of price between the Alberta product price and the North American benchmark price is at its lowest level in years.

THE PRICE PROBLEM is not a matter ofpipeline access.  The problem is OVERPRODUCTION.

What ever happened to the idea that we were to wean ourselves off fossil fuels?