Leduc Mayor supports provinces plan to cut oil production next year

Mayor Young says they support Premier Notley's plan to cut oil production in 2019

The city of Leduc is on board with the province's announcement to cut oil production by 8.7% beginning in the new year.

At least 25 producers in Alberta are expected to face cuts until the 35 million barrels of oil currently in storage are shipped out of the province.

Young tells The One News how the oil price impacted their 2019 budget.

"Without having more investment in our community, that means we have less tax revenue and that means it shifts the burden onto the residents, so it's really important and the city of Leduc is doing everything it can to promote investment in our community," says Young.

Young also had a message for the federal government saying "It's time for the federal government to follow the provinces footsteps and show their support for Albertans, you know it's very very important that the federal government actually puts actions to their words".

Young says he's got every confidence that cutting production is the right thing to do to help soften the blow of the oil price differential which is costing Alberta's economy over $80 million a day.

Young adds that to see instability return to the economy once again creates apprehension for businesses with strong ties to oil and gas.

The plan announced by the NDP is expected to reduce the oil price differential by at least $4 US per barrel relative to where it would have otherwise been.  (JSL/THE ONE NEWS)

 

 

 

More from Local News

The One For All Club

Join the exclusive VIP club today!