September 04, 2005
By Staff with files from EUB
Calgary, Alberta - In response to Premier Ralph Klein's request for Alberta to increase the supply of oil on a temporary basis to help the United States during the crisis caused by Hurricane Katrina, the Alberta Energy and Utilities Board (EUB) has taken steps which will allow for an additional 18,000 - 30,000 barrels of Alberta oil production per day.
Following consultation with Minister of Energy Greg Melchin, the EUB will suspend the current Maximum Rate Limitation (MRL) systems, which will allow for increased oil production on a temporary basis.
An MRL is the maximum rate of oil production prescribed by the EUB to ensure conservation of an oil reservoir.
"It's more of a token gesture.... It's really an insignificant number. We produce roughly two million barrels a day, so 18,000 to 30,000 barrels a day in additional volume, on a temporary basis, is really a drop in the bucket," CTV news quoted industry analyst, Peter Linder as saying.
The damage caused by Hurricane Katrina when it hit the Gulf Coast last week shut down about 10 per cent of United States' oil refining capacity.
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The Alberta Energy and Utilities Board of Alberta, Canada, will increase oil output by between 18,000 and 30,000 barrels a day to help the U.S. in the wake of Hurricane Katrina.  This is being done by temporarily suspending limits on oil production. The increase was requested by Alberta's Premier, Ralph Klein.

The comparatively small size of the increase has led industry analyst Peter Linder to call the increase "more of a token gesture" and a "drop in the bucket" by comparison to normal production levels.

The increase in production levels is temporary, but no date has been set for when the output levels might again be capped. Analysts say that 10% of the U.S. Gulf States' oil production was affected by the hurricane.