More oil patch names cut output due to fires
CBC News
Posted: May 17, 2011 3:23 PM ET
Last Updated: May 17, 2011 3:23 PM ET
Smoke obscures Highway 2 outside Slave Lake, Alta., on Monday. The area's oil industry is now under threat from the devastating flames. (Ian Jackson/Canadian Press)
Related
Related Links
More oil companies cut production at their sites in northern Alberta due to wildfires in the surrounding area.
Canadian Natural Resources Ltd. has cut output at its Pelican Lake site, about 90 kilometres north of the fire's epicenter of Slave Lake, because of more than a hundred wildfires burning across the province.
Although the CNQ site itself is not believed to be under fire threat, power has been cut to the surrounding area, which means a nearby pipeline can't take the facility's output away.
The company has been storing its excess oil in tanks, but those are almost full. If the pipeline doesn't start up in the next day or so, oil production will have to stop altogether, COO Steve Laut said Tuesday.
'We are monitoring the spread of the fire and the potential for additional production shut-ins'—Penn West statement
At peak capacity, the CNQ site produces 40,000 barrels per day.
Cenovus Energy Inc. has encountered similar problems at its nearby site, which produces 22,000 barrels a day. Production there may also have to be cut entirely on Wednesday because of the pipeline loss, the company said Tuesday.
The pipeline that services the area was already at reduced capacity because of a spill that poured 30,000 barrels into the surrounding area at the end of April along the pipeline's northern stretch near Peace River.
Now fire and power cuts are threatening the same pipeline further south.
On Monday, a fire within 150 metres of work camps near CNQ's Horizon Oil Sands site forced the company to remove 1,300 personnel from the area. Production at that site near Fort McMurray has already been slowed due to a fire in January.
The forest fires have temporarily halted repairs to the plant's upgrader, which was damaged in a fire in January, the company said Tuesday.
Energy woes
Another Calgary-based oil producer, Exall Energy Corp., said it had shut production, 921 barrels of oil equivalent daily, at its Marten Mountain field.
Exall is assessing the effect the fires have had on its infrastructure and equipment.
"Aerial surveillance of the Marten Mountain area indicates that Exall's facilities and operations have not currently been impacted by the fires and are not at this time under threat from the fires," the company said in a release. "The fires currently appear to be south and east of Exall's Marten Mountain operations."
Calgary-based Penn West Petroleum said it has shut in 25,000 to 30,000 barrels a day of heavy oil production in north-central Alberta and suspending drilling in the region.
"We are monitoring the spread of the fire and the potential for additional production shut-ins," the company said in a release. Penn West's operations have also been affected by flooding in Manitoba and Saskatchewan, curtailing the company's total daily production by about 20 per cent or 35,000 to 40,000 barrels of oil equivalent.
Share Tools
Top News Headlines
- TV chef Nigella Lawson's husband cautioned by police for assault
- Prominent British art collector Charles Saatchi has admitted assault and accepted a police caution after published photos showed him grasping the throat of his wife, celebrity chef Nigella Lawson. more »
- G8 leaders agree to 7-point plan on Syria as summit wraps
- Prime Minister Stephen Harper and the other G8 leaders reach a seven-point plan aimed at stopping the conflict in Syria, wrapping up a two-day summit in Northern Ireland following talks on trade, tax evasion, poverty and terrorism. more »
- In Bangladesh's garment trade, empowerment comes at $20 a week
- The pay is laughable by Western standards, and the shantytowns of Dhaka offer a difficult life. But the surge of mostly young women into the country's increasingly important clothing industry is having a profound change on this largely Islamic society, Margaret Evans writes. more »
- Are e-cigarettes safe to puff?
- As electronic or e-cigarettes grow in popularity, some health advocates want them to be regulated. more »
Must Watch
Latest Business Headlines
- Tim Hortons being circled by Wall Street hedge funds
- At least two groups of American hedge funds have bought large chunks of Tim Hortons shares recently, a sign the activist investors want to push the company to make major changes to its business, or possibly give up some control over the company. more »
- Chrysler agrees to recall 2.9 million Jeep SUVs in U.S., Canada
- Chrysler avoided a showdown with U.S. government safety regulators Tuesday, agreeing to recall 2.7 million older Jeep Grand Cherokee and Liberty SUVs in the U.S. and 180,000 in Canada that could be at risk of a fuel tank fire. more »
- Leaders downplay reports of stalled Canada-EU trade talks
- Both Prime Minister Stephen Harper and his British counterpart, David Cameron, downplayed signs of trouble in the Canada-EU trade negotiations Tuesday, even as the European Union's spokesman suggested Canada hasn't shown enough "pragmatism and flexibility" at the table. more »
- Business jets dominate Bombardier's $2B in sales at air show
- Business jets dominated the aircraft orders announced by Bombardier on Tuesday, the second day of the Paris Air Show, accounting for most of the nearly $2 billion US worth of business that the Montreal-based company has done at the show — if all options are exercised. more »
- Crowdfunding websites trying to cash in on crowded field
- Success stories make it seem like crowdfunding websites drop cash from the heavens on to any deserving idea. But regulators and big banks are now taking a closer look at the controversial new field, Dianne Buckner writes. more »
Lang & O'Leary Exchange
Markets
| Index | Last Trade | Change |
|---|---|---|
| TSX COMPOSITE | 12367.46 | 78.56 |
| DOW | 15318.23 | 138.38 |
| NASDAQ | 3482.18 | 30.05 |
| SP 500 | 1651.81 | 12.77 |
| TSX-VENTURE | 929.99 | -4.05 |
The data on this site is informational only and may be delayed; it is not intended as trading or investment advice and you should not rely on it as such.
- Canadians in Dominican wedding fight freed from jail
- Disabled woman's care before dying on bus still a mystery
- Huge ancient city at Angkor Wat revealed by lasers
- TV chef Nigella Lawson's husband cautioned by police for assault
- 'Standing man' inspires new, silent protests in Turkey
- G8 leaders agree to 7-point plan on Syria as summit wraps
- Student with bullied past, 'The Doorman,' graduates
- Montreal mayor resigns amid corruption charges
- Parents of son 'brutally beaten' playing hockey want charges

