Wildfires in Alberta, Canada, has shut down at least 145,000 boe/d of production and caused the provincial government to declare a state of emergency, according to its website.
Several E&P and midstream companies reported they are shutting in production until conditions have changed. A government website reported 104 active wildfires in the area. Rain and cooler weather are expected to bring some relief to the area on May 8.
Crescent Point Energy was among the Canadian companies reporting on May 8 that they would halt production. Crescent Point said it would halt approximately 45,000 boe/d in the Kaybob Duvernay area with a “plan to restart production once safe and permitted to do so.” The company reported no damage to its assets.
Vermillion Energy, likewise, said it has temporarily shut in approximately 30,000 boe/d “while we assess the risk to our operations.” The company said it had accounted for all employees and contractors.
“Our assessment to date indicates minimal damage to our key infrastructure,” the company reported.
Pipestone Energy Corp. also said that, as a precaution, it would shut-in operating production locations and third-party infrastructure. “Approximately 20,000 boe/d of production has been temporarily curtailed since the evening of May 5,” the company said in a May 8 press release.
Baytex Energy Corp. also reported approximated 10,000 boe/d (70% oil) ws shut-in as the result of third-party infrastructure disurptions in west-central and northwest Alberta. Sales volumes have been curtailed since the May 5. About 60% of curtailed volumes remain on-line and are producing, the company said.
Alberta Premier Danielle Smith is scheduled to speak to Prime Minister Justin Trudeau on May 8.
A 2016 wildfire in the Alberta city of Fort McMurray devastated some 1,600 buildings and put another 19,000 under threat of collapse, making it one of Canada's worst.
Insured losses from the Fort McMurray fires were estimated at CA$3.6 billion (US$2.7 billion).
Canada is home to the world's third-largest reserves, and most of these are in northern Alberta's vast oil sands.
More than 100 wildfires are still active, with more than 30 classified as out-of-control.
"People have called this season certainly unprecedented in recent memory because we have so many fires so spread out," Christie Tucker from Alberta Wildfire told Reuters.
This report contains reporting from Reuters.
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