"Wildfires sweeping across western Canada that have driven thousands of people from their homes are also striking the heart of Canadian oil and gas country, forcing companies to curb production.
As flames bore down on wells and pipelines, major drillers like Chevron and Paramount Resources together shut down the equivalent of at least 240,000 barrels of oil a day, according to the energy consulting firm Rystad Energy.
The damage to oil and gas production was likely to significantly surpass current tallies, Thomas Liles, vice president of Rystad’s upstream research, said in a note. A large part of Alberta’s shale gas producing regions remained under “extreme” or “very high” wildfire warnings. Another 2.7 million barrels a day of oil sands production was also at risk.
The disruptions from the fires in Canada, a major oil- and gas-producing nation, have helped push oil prices higher. Chevron said it had shut down all production at its Kaybob Duvernay oil and gas fields in central Alberta. Paramount temporarily shuttered a natural gas processing plant along with production in several gas fields, the company said in its latest update on Sunday. Both companies said they were prioritizing the safety of their workers."
Hiroko Tabuchi reports for the New York Times May 17, 2023.
SEE ALSO:
"Canada's Alberta Blanketed By Smoke As Wildfire Battle Continues" (Reuters)
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