Canada increases oil production to assist U.S.

September 5, 2005

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.