Calgary — Paramount Resources Ltd. has revised its guidance for average sales volumes in the first half of 2023 due to disruptions caused by the Alberta wildfires, which have halted production at several of its facilities.
Sales Guidance Revised
The company now expects average sales volumes for the first half of 2023 to be approximately 92,500 barrels of oil equivalent per day (boepd). This figure is down from its previously stated range of between 96,000 and 101,000 boepd.
Production Challenges
Paramount Resources said it is actively working to restore production at its affected facilities. However, ongoing interruptions in maintenance and development work caused by the wildfires are complicating efforts to fully recover lost output. The company has already restored most of its previously curtailed production, with only about 2,500 boepd still unavailable.
Historical Context
Paramount was among several energy companies that were forced to halt operations temporarily in Alberta earlier this year due to wildfires. These events have had a lasting impact on regional energy output and supply chain logistics.
Additional Impacts
The fires have also disrupted the broader energy sector, with other firms experiencing production halts or operational delays. For instance:
- Cenovus Energy faced cleanup efforts following a diesel spill into an Alberta lake.
- Other pipelines, such as Trans Mountain, are facing rising shipping costs, drawing criticism from Canada’s largest oil producers.
Recovery Efforts
Paramount has been working diligently to address the operational challenges posed by the wildfires. The company emphasized its commitment to minimizing the environmental and economic impact of these events on its business.
Future Outlook
As operations recover, Paramount expects to gradually return to pre-disruption levels of production. However, the lingering effects of the fires will continue to pose challenges for the region’s energy sector for some time to come.
This comprehensive update reflects the ongoing impacts of the Alberta wildfires and their significant effect on the energy industry.