In this week's news, a crew camp north of Fort McMurray is destroyed by a wildfire, a train carrying frac sand derailed in Colorado, the EIA predicts oil production to decline again in June and EnerVest acquired several Eagle Ford assets
A wildfire in northern Alberta grew in size north of Fort McMurray, Alberta, on May 17, consuming an evacuated oilsands camp and threatening other facilities in the region.
It came one day after the fire forced the evacuation of 8,000 nonessential staff from more than a dozen crew camps and sites in the oilsands region.
The Guardian reported that winds pushed the fire into an area filled with oilsands work camps, destroying a 665-bed camp belonging to Horizon North Logistics just hours after the area was evacuated. The company says staff members were safe and accounted for. Two other nearby camps were being monitored as flames approached later in the day.
Train Carrying Fracking Sand Derails in Colorado
Firefighters say nine train cars that derailed near an elementary school in northern Colorado on May 15 were carrying sand used in fracking but no hazardous materials, according to the Associated Press.
The cars, part of a 100-car train, came off the tracks and tipped in Timnath, Colorado. No one was injured in the accident.
The Coloradoan reports that trains carrying crude often move through the area and it took some time before authorities confirmed there were no materials that posed a chemical or explosive threat.
EIA Forecasts Decline in Oil Production in June
The U.S. Energy Information Administration released its May report on drilling productivity in seven key oil and gas producing regions on May 16. Overall oil production is projected to decline by 113,000 barrels per day from 4.962 million bpd in May to 4.848 million bpd in June.
New well production is expected to rise from an estimated 562,000 bpd in May to 575,000 bpd in June.
The largest decline is forecasted for the Eagle Ford play where production is expected to slip by 58,000 pbd. Production in the Bakken is expected to drop by 28,000 bpd.
EnerVest Acquires $1.3 billion in Eagle Ford Assets
EnerVest announced May 17 new acquisitions in the Eagle Ford shale play. Since September 2015, the company has acquired $1.3 billion of assets from three entities in Karnes County, Texas.
Recently EnerVest signed agreements to acquire the assets from BlackBrush Oil and Gas and GulfTex. The sellers will retain a minority ownership stake in the remaining assets.