Underwater surveys began on Nov. 19 after an oil spill off Canada's Atlantic coast as Husky Energy Inc. and government agencies assessed a leak that temporarily shut down all crude production in the waters of Newfoundland & Labrador.
A leaking flowline from Husky's White Rose Field to the SeaRose storage vessel was detected on Nov. 16, when Husky was restarting production after suspending operations a day earlier due to stormy weather.
The spill involved 250 cubic meters (1,572 bbl) of oil, Husky spokeswoman Colleen McConnell said on Nov.18. She said the company is monitoring the area for oil sheens and any impact on wildlife.
The leak forced Husky's White Rose to shut down, along with all other producing oil projects in the area until the regulator, Canada-Newfoundland & Labrador Offshore Petroleum Board, determines it is safe to resume, the board said in a statement on Sunday.
Along with White Rose, there are three other producing projects off the shore of Newfoundland - Exxon Mobil Corp's Hebron and Hibernia fields, and the Suncor Energy Inc. -operated Terra Nova.
Exxon Mobil said on Nov. 19 it had "safely resumed production" at Hebron, while its larger Hibernia field has not yet restarted. It said it shut in production at the two fields prior to the Husky incident.
The combined output of Canada's Atlantic projects is 280,000 barrels per day, a volume that is unlikely to affect oil markets significantly, with global storage levels high and a likely quick return to production, said Mark Oberstoetter, director of upstream Canada for consultancy Wood Mackenzie.
Environmental groups said that while government and industry officials have said they can protect oceans from the risks of an offshore spill, the reality is more complicated.
"This is the inevitable nightmare scenario where extreme weather is making it impossible to determine how much oil has been spilled, much less try to clean it up," said Keith Stewart, senior energy strategist with Greenpeace Canada.
There were no injuries to oil workers during the storm, one of the worst in decades, the Newfoundland & Labrador regulator said on Nov. 17. A spokeswoman for the regulator did not respond to requests for comment on Nov. 18.
Shares of Husky Energy closed down 3.21% at C$16.87 in Toronto on Nov. 18.
Recommended Reading
Expand Lands 5.6-Miler in Appalachia in Five Days With One Bit Run
2025-03-11 - Expand Energy reported its Shannon Fields OHI #3H in northern West Virginia was drilled with just one bit run in some 30,000 ft.
Ring May Drill—or Sell—Barnett, Devonian Assets in Eastern Permian
2025-03-07 - Ring Energy could look to drill—or sell—Barnett and Devonian horizontal locations on the eastern side of the Permian’s Central Basin Platform. Major E&Ps are testing and tinkering on Barnett well designs nearby.
E&Ps Pivot from the Pricey Permian
2025-02-01 - SM Energy, Ovintiv and Devon Energy were rumored to be hunting for Permian M&A—but they ultimately inked deals in cheaper basins. Experts say it’s a trend to watch as producers shrug off high Permian prices for runway in the Williston, Eagle Ford, the Uinta and the Montney.
EOG Ramps Gassy Dorado, Oily Utica, Slows Delaware, Eagle Ford D&C
2025-03-16 - EOG Resources will scale back on Delaware Basin and Eagle Ford drilling and completions in 2025.
Watch for Falling Gas DUCs: E&Ps Resume Completions at $4 Gas
2025-01-23 - Drilled but uncompleted (DUC) gas wells that totaled some 500 into September 2024 have declined to just under 400, according to a J.P. Morgan Securities analysis of Enverus data.