Fires Rage in Canada’s Main Energy Hub, Threatening Region’s Oil Production
Views: 2114
2023-05-17 06:18
Shifting fires across Canada’s main energy-producing province are prompting drillers to throttle back production once again — more

Shifting fires across Canada’s main energy-producing province are prompting drillers to throttle back production once again — more than a week after the blazes began — and officials are warning of worsening conditions ahead.

Athabasca Oil Corp. joined Chevron Corp., Crescent Point Energy Corp. and others in reporting renewed shutdowns in Alberta due to the fires. Industry consultant Rystad Energy estimates natural gas curtailments have reached the equivalent of about 250,000 barrels of oil output a day.

While the total number of active wildfires in Alberta declined to 86 on Tuesday afternoon, down from 90 a day earlier, the number of out-of-control blazes ticked up by one to 24. Smoke from the fires drifted to Calgary, where most of Canada’s energy producers are based, shrouding the city in smog.

While that smoke has in some cases helped firefighters battle the blazes by cooling temperatures at the ground, the conditions that helped spawn the fires remain a threat, and no significant rain is expected in the coming days, said Christie Tucker, a spokeswoman for Alberta Wildfire.

“The wildfire landscape is still changing as we see some wildfires contained and others starting up,” Tucker said.

Almost 19,500 residents are currently evacuated, said Colin Blair, executive director of the Alberta Emergency Management Agency. That’s up from 17,000 on Monday.

In 2016, wildfires ripped through Alberta’s oil sands region, cutting more than 1 million barrels of daily crude production and destroying whole sections of Fort McMurray, the biggest city in the area. This month’s blazes have largely spared the oil sands.

Operational Updates

Below is a summary of operational updates from companies working in the area:

(Updates with new outage in second paragraph)

Tags bte cn ppl cn oiltop cmd alltop cvx northam kec cn canada gen markets catop pey cn business top oil cpg cn gentop nrgtop nrg