Fort McMurray residents say pipelines are needed more than production cuts

Although it may have been the right decision, Richard Chunickwon't give Alberta's NDP government any credit for the rare move ofintervening to reverse tanking oil prices.

The Fort McMurrayauto shop owner withholds his kudos for Premier Rachel Notleybecause he thinks Notley and previousAlberta premiers should have taken action to ensure the province had another pipeline to the ocean.

"I definitely thinkthere was no reason for it [the price differential]," said Chunick, owner of Great West Automotive Service in the neighbourhood of Gregoire."Yes I think it could have been avoided the bottleneck that we are in now."

• 6 things to know about Canada's oil-price gap, from gluts to the differential
• 'Devil will be in the details': Oil production cuts met with mixed reviews from industry players
• Alberta premier announces 8.7% oil production cut to increase prices

On Sunday, Notley announced a temporary 8.7-per-cent cut in the production of raw crude and bitumen starting Jan. 1, 2019.

The measure is aimed at closing the oil price differential, which the government says is costing the Canadian economy more than $80 million a day.

At a diner near Chunick's auto shop, waitress Celeste Cunninghamwasn't in favour of the governmentinterferingin the free market.

She fears production cuts could mean job cuts as all oil companies producing more than 10,000 barrels per day are forced to scale back output.

"It could go either way. And I just want what's best for my community," Cunningham said before her shift at Ms. B's Diner. "I've been living here for almost 25 years. Fort McMurray is an oil town and I don't want to see more harm."

Watch:Fort McMurray residents react to the province's decision to cut oil production

'Everyone I know is pretty terrified'

6 years ago

Duration 0:56

Fort McMurray residents react to the province's decision to cut oil production.

But many in Fort McMurraythink the production cut was necessary.

Oilsands activist Robbie Picard said short-term layoffs may happen as a result of reducing the province's oil output but inaction would be more "catastrophic."

"You will lose some jobs by this, that's obvious. But catastrophic oil closure would be far worse for our province," Picard said.

Regional Municipality of Wood Buffalo MayorDon Scott applauded the province for taking action and said he has seen signs thecuts are working to help revive oil prices.

Western Canadian Select (WCS) closed Monday at $27.95,up 65 per cent over the Friday close.

"The price has gone up,"Scott said. "That's exactly what was predicted and exactly what happened."

However, Scott said the cuts are only a short-term fixand all levels ofgovernment are pushing for pipelines to be built as the long-term solution.