Breadcrumb Path Hyperlinks
Politics Vitality Columnists Enterprise
Over the weekend and on Monday, a collection of oil and pure fuel producers introduced they’ve shut in output from varied websites throughout central and northern Alberta
Article content material
The wildfires that triggered the evacuation of almost 30,000 Albertans from their houses over the weekend additionally left Canadian petroleum producers hustling to shut down amenities, relocate workers to security and shut in 1000’s of barrels of oil and fuel manufacturing.
Commercial 2
Article content material
Over the weekend and on Monday, a collection of oil and pure fuel producers — together with Cenovus Vitality, Tourmaline Oil Corp., Vermilion Vitality, Crescent Level Vitality, NuVista Vitality and Paramount Sources — introduced they’ve shut in output from varied websites throughout central and northern Alberta.
Article content material
There have been 90 energetic wildfires in Alberta as of Monday afternoon, together with 25 deemed uncontrolled, whereas 29,000 folks have been evacuated from their houses, the provincial authorities reported.
Over the weekend, petroleum producers curtailed output and halted drilling in some areas as a result of issues surrounding the wildfires, though rain and cooler climate have been serving to the scenario on Monday.
“It’s nonetheless a severe scenario. We’ve received three rigs right here which have been evacuated and 4 rigs on standby, and we’re monitoring the scenario,” Ensign Vitality Companies president Bob Geddes stated in an interview.
“On Saturday, we had three of the crews — three of the rigs — the place forestry (officers) got here in and informed us, ‘Hey guys, it’s time to get out.’ ”
Ensign’s rigs have been drilling within the Brazeau County and Edson areas, areas the place obligatory evacuation orders had been issued, though they have been lifted for the city of Edson on Monday morning.
Article content material
Commercial 3
Article content material
“A number of the fires received very near the rigs . . . There have been some perimeter camps and well-site shacks which have been burned, however nothing on the rigs,” Geddes added.
“Issues appear to be settling down slightly bit. As , it might probably change. However it’s cooler on the market and it’s not as windy.”
Alberta wildfires dwell updates for Could 8
Vitality corporations curtail manufacturing as a result of Alberta wildfires
Calgary deploys personnel to combat Alberta wildfires, opens reception centre for evacuees
The power trade, like municipal and provincial governments, does have expertise coping with weather-related emergencies, together with the 2013 floods in southern Alberta and the Could 2016 wildfires within the Fort McMurray space. These fires led to as much as a million barrels per day of oilsands output being taken off-line at one level.
The 2023 fires are affecting manufacturing within the Montney and Duvernay areas, in addition to some typical oil and fuel websites within the province.
Kiwetinohk Vitality stated it safely shut within the majority of its Placid operations close to Fox Creek as a result of downstream third-party interruptions.
Commercial 4
Article content material
“As an oil and fuel firm, you delight your self on having sturdy emergency response protocols. We observe quite a lot of various kinds of response situations,” stated firm chief working officer Mike Backus.
NuVista Vitality stated Monday it briefly shut in about 40,000 barrels per day because of the wildfires within the Grande Prairie area as a precautionary step, and it was broadened by the shut-in of third-party infrastructure that serves its operations.
Cenovus reported it curtailed quite a lot of typical fields and processing vegetation, affecting about 85,000 boe per day, primarily fuel produced from its Rainbow Lake, Kaybob-Edson, Elmworth-Wapiti and Clearwater working areas.
Crescent Level Vitality introduced it shut in about 45,000 boe per day within the Kaybob Duvernay space as a precaution.
And Tourmaline Oil Corp. stated workers and their households have been evacuated from operated amenities and houses within the Edson space, as the corporate shut 9 fuel processing amenities on Friday and Saturday. The Calgary-based producer isn’t conscious of any injury to its amenities.
Commercial 5
Article content material
“It’s an hour-by-hour course of. We now have been capable of regain entry to some, even at the moment, but it surely’s clearly a really dynamic scenario,” Jamie Heard, Tourmaline’s supervisor of capital markets, stated Monday.
“We’re hopeful the climate circumstances at the moment and (Tuesday) permit the fireplace professionals within the areas to make some headway.”
Paramount Sources stated it briefly curtailed about 50,000 boe of manufacturing within the Kaybob and Grande Prairie areas, and evacuated all affected personnel, whereas Vermilion Vitality shut in about 30,000 boe per day at its west central Alberta operations.
Whitecap Sources CEO Grant Fagerheim stated the corporate is assessing the impact of the fires on its operations in central and northern Alberta and northeast British Columbia, noting some manufacturing was affected by interruptions to third-party processors, though some output has since come again.
“Beginning on Friday, it’s been all palms on deck,” Fagerheim stated in an interview.
“Our subject superintendents have been operating round and, frankly, getting drained. They’re working 20-hour shifts, simply ensuring everyone seems to be secure and wholesome.”
Commercial 6
Article content material
TC Vitality stated Monday that it shut down two compressor stations on the Nova Fuel Transmission Ltd. system close to the wildfires in western Alberta.
In whole, western Canadian fuel manufacturing has fallen by about two billion cubic ft (bcf) per day since Thursday to about 15.5 bcf, stated Martin King, senior analyst with RBN Vitality in Calgary.
“That’s slightly bit greater than 10 per cent of the manufacturing of the basin that has been impacted by the fireplace and the shut-ins. That’s a fairly sizable quantity,” King stated.
“We haven’t seen numerous huge impression on worth but, and that’s primarily as a result of demand is simply usually tender elsewhere in North America and there’s a lot of fuel in storage . . . It is going to actually rely upon how lengthy it lasts.”
Chris Varcoe is a Calgary Herald columnist.
cvarcoe@postmedia.com
Feedback
Postmedia is dedicated to sustaining a vigorous however civil discussion board for dialogue and encourage all readers to share their views on our articles. Feedback might take as much as an hour for moderation earlier than showing on the location. We ask you to maintain your feedback related and respectful. We now have enabled e mail notifications—you’ll now obtain an e mail should you obtain a reply to your remark, there may be an replace to a remark thread you comply with or if a person you comply with feedback. Go to our Group Tips for extra data and particulars on modify your e mail settings.
Be part of the Dialog