Canada's oil industry will increase production by 23.6mn bl in the coming months for its contribution to the massive price stabilization effort by the IEA, according to the federal government.
The coordinated effort by members of the Paris-based IEA would make about 412mn bl of additional crude and refined products available to the market after the de facto closure of the strait of Hormuz cut off Mideast Gulf exports. The IEA's 11 March decision to tap into stockpiles was made unanimously by its 32 member states, including Canada.
But with no strategic petroleum reserves, Canada's offering will come in the form of production increases, mostly from Alberta's oil sands, and will be coordinated with the federal and provincial governments, Natural Resources Canada said.
The 23.6mn bl will start to reach the market in April with the entire volume taking three-to-six months, the federal agency told Argus. That translates into a range of about 128,000-260,000 b/d.
Canada produces about 5.3mn b/d with nearly 4mn b/d of that coming from Alberta's oil sands.
The US will contribute about 172mn bls from its strategic petroleum reserves for the IEA effort.
IEA secretary general Fatih Birol said Monday the agency's members still have more than 1.4bn bl of inventory, meaning "we can do more later if needed."
