• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 32 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 6 days If hydrogen is the answer, you're asking the wrong question
  • 7 hours How Far Have We Really Gotten With Alternative Energy
  • 10 days Biden's $2 trillion Plan for Insfrastructure and Jobs
EU and Turkmenistan Eye New Energy Partnerships

EU and Turkmenistan Eye New Energy Partnerships

Turkmenistan's Foreign Minister announces an…

2.7 Million Bpd Of Crude In Alberta Under Extreme Wildfire Threat

Norwegian energy consultancy Rystad Energy has warned that nearly 2.7 million barrels per day of Alberta oil sands production is in"very high" or "extreme" wildfire danger rating zones in the month of May. Rystad estimates that ~60% of May production volumes are currently subject to extreme wildfire danger levels, with the rest exposed to very high danger levels.

"As of the afternoon of May 16, high-confidence outage volumes based on operator communication stand at about 240,000 barrels of oil equivalent per day (boepd), although in reality, the impact is likely in excess of 300,000 boepd if not higher," Rystad has said.

The Canadian energy sector is reeling after the shutting in of at least 145,000 of oil equivalent per day (boepd) in the oil-rich province of Alberta due to wildfires more than a week ago.

The unprecedented fires have forced tens of thousands of Albertans  to evacuate their homes.

More than half a dozen Canadian oil and gas companies including Paramount Resources (OTCPK:PRMRF), Crescent Point Energy Corp. (NYSE:CPG), Vermilion Energy Inc. (NYSE:VET), Pipestone Energy Corp. (OTCPK:BKBEF), Kiwetinohk Energy Corp. (TSX:KEC:CA),Tourmaline Oil Corp. (OTCPK:TRMLF) and Cenovus Energy Inc. (NYSE:CVE) have been impacted by the nearly 80 fires currently running amok in the province.

Declaring a state of emergency on Saturday, Alberta Premier Danielle Smith described the situation as "unprecedented".

Alberta"has been experiencing a hot, dry spring and with so much kindling, all it takes is a few sparks to ignite some truly frightening wildfires," Smith said.

Climate change is making it costlier for oil and gas companies to operate. 

Alberta’s wildfires are the latest in a series of climate-related?supply threats have already begun to manifest in the oil and gas industry, with more than 600 billion barrels equivalent of the world’s commercially recoverable oil and gas reserves, or 40% of total reserves, facing high or extreme risks

According to UK-based global risk and strategic consulting firm Verisk Maplecroft, the risk of?climate-related events disrupting?the flow?of oil?to global markets?is highest in Saudi Arabia, Iraq and Nigeria.

ADVERTISEMENT

By Alex Kimani for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News