Photo: The Canadian Press
Alberta Energy Minister Sonya Savage

EDMONTON — Alberta is adjusting its rules on oil production limits to give companies incentive to drill more conventional wells.

Energy Minister Sonya Savage says that starting immediately any oil produced from a new well will not be subject to the limits.

The province expects the change will spur producers to drill hundreds of new wells and that each well will create about 145 jobs.

“While we want an orderly exit out of curtailment altogether, our communities and drilling sector cannot wait,” Savage told a legislature news conference Friday.

“That is why we’re taking this action today to encourage investment and bring back jobs.”

In September, Alberta produced 480,000 barrels a day of conventional oil. About one-fifth of that was from operators working under the curtailment rules.

There are exemptions in place so that small producers are not affected by the limits.

The move is the latest action by the government to try to increase investment and employment in Alberta’s oil and gas industry and reverse years of declines in drilling.