Alberta’s production cuts did their job

Article Excerpt

Late last year Alberta’s previous NDP government ordered oil producers in the province to cut their total daily output. The government-imposed reduction was the result of a lack of pipeline capacity that led to a glut of stored crude in the province and helped to push down the price for Western Canadian oil. Now that prices are improving, the cap will fall from 325,000 barrels a day at the start of the year to 150,000 barrels in June 2019. The province’s new United Conservative government will likely phase out the cap in the next few months, particularly as new pipelines begin operating in 2020 and 2021. Meantime, all three of these oil producers are doing a good job coping with the restrictions. We continue to recommend them as strong additions to the Resources component of most investors’ portfolios. SUNCOR ENERGY INC. $43 (Toronto symbol SU; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.6 billion; Market cap: $68.8 billion; Price-to-sales ratio: 1.8; Dividend yield: 3.9%; TSINetwork…