Oil producers have shut in at least 145,000 barrels of oil equivalent per day (BOEPD) of oil and gas production, about 5% of Alberta’s daily output, in response to wildfires raging across the northern part of the province..Calgary-based Paramount Energy said it has “temporarily curtailed” about 50,000 BOEPD in the Grande Prairie and Kaybob regions since May 5, while Crescent Point Energy has shut in another 45,000 BOEPD. Vermillion Energy added 30,000 barrels, while Pipestone Energy cut back 20,000 BOEPD..“This precautionary measure is being taken by the company to protect the safety of its staff, the community, environment, and its assets,” Crescent Point said in a release..Kiwetinohk Energy Corp., which produces about 24,000 BOEPD, said it shut down the majority of its Placid operations in response to third-party interruptions..Tourmaline Oil Corp., Canada’s largest natural gas producer, said it had shut down nine gas processing facilities in the Edson area, affecting an undisclosed amount of production. In a statement, it said it is unaware of any damage to the facilities and that access to the sites is currently prohibited..It said it would provide future updates on the timeline for production resumption and quantify the financial impact on its second-quarter guidance..Cenovus Energy also said it has shut down an undisclosed number of plants and production in its conventional segment..All told it would be the most significant oil shutdowns since the Fort McMurray fires in 2016 forced the closure of more than one million BOEPD of oil sands production, about a quarter of Canada’s oil production, for two months in addition to consuming 1.5 million acres, or an area the size of London, UK..It was one of the costliest natural disasters in Canadian history, resulting in direct and indirect costs of $9.9 billion.
Oil producers have shut in at least 145,000 barrels of oil equivalent per day (BOEPD) of oil and gas production, about 5% of Alberta’s daily output, in response to wildfires raging across the northern part of the province..Calgary-based Paramount Energy said it has “temporarily curtailed” about 50,000 BOEPD in the Grande Prairie and Kaybob regions since May 5, while Crescent Point Energy has shut in another 45,000 BOEPD. Vermillion Energy added 30,000 barrels, while Pipestone Energy cut back 20,000 BOEPD..“This precautionary measure is being taken by the company to protect the safety of its staff, the community, environment, and its assets,” Crescent Point said in a release..Kiwetinohk Energy Corp., which produces about 24,000 BOEPD, said it shut down the majority of its Placid operations in response to third-party interruptions..Tourmaline Oil Corp., Canada’s largest natural gas producer, said it had shut down nine gas processing facilities in the Edson area, affecting an undisclosed amount of production. In a statement, it said it is unaware of any damage to the facilities and that access to the sites is currently prohibited..It said it would provide future updates on the timeline for production resumption and quantify the financial impact on its second-quarter guidance..Cenovus Energy also said it has shut down an undisclosed number of plants and production in its conventional segment..All told it would be the most significant oil shutdowns since the Fort McMurray fires in 2016 forced the closure of more than one million BOEPD of oil sands production, about a quarter of Canada’s oil production, for two months in addition to consuming 1.5 million acres, or an area the size of London, UK..It was one of the costliest natural disasters in Canadian history, resulting in direct and indirect costs of $9.9 billion.
