PBA - More oil and gas production shut-in by Alberta wildfires

2023-05-08 17:56:49 ET

At least 100 wildfires raging across western Canada Monday have forced the curtailment of ~234K bbl/day of oil and gas production as companies shut down wells and pipelines.

Edmonton Mixed Sweet's discount to West Texas Intermediate narrowed by more than a third to US$2.50/bbl, the smallest discount since March, and Syncrude Sweet's premium grew to $3.50/bbl, according to Bloomberg data.

In addition to several other shutdowns announced earlier in the day, Cenovus Energy ( NYSE: CVE ) said 85K boe/day of production , primarily dry gas, has been impacted in the company's Rainbow Lake, Kaybob-Edson, Elmworth-Wapiti and Clearwater operating areas.

Cenovus ( CVE ) said it is maintaining its full-year guidance range of 790K-810K boe/day as it continues to assess the duration of the production impact from the fires.

Obsidian Energy ( OBE ) said it has temporarily shut-in 11K boe/day of production at its Pembina area in central Alberta.

Baytex Energy ( BTE ) said ~10K boe/day of sales volumes have been curtailed from the shut-in of third-party infrastructure in Alberta.

Pembina Pipeline ( PBA ) said its assets currently shut down due to wildfires include the Saturn I and II gas plants and Duvernay Complex, with a combined processing capacity of 443M cf/day net to the company.

More on Cenovus Energy:

• See financial and valuation comparisons to sector peers
• SA analysis: Buy This Year's Oil Sands Laggard
• Stock price return: Down 11% YTD, down 13% in the past 12 months

For further details see: