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Reuters
7 hours ago
- Business
- Reuters
How Canada's wildfires are affecting oil supply
CALGARY, Alberta, June 3 (Reuters) - Wildfires burning in Canada's oil-producing province of Alberta have reduced the country's daily crude production by about 7%. Here is a tally of affected oil production sites so far: CENOVUS ENERGY - CHRISTINA LAKE SITE: Oil sands producer Cenovus ( opens new tab evacuated non-essential workers from its Christina Lake site south of Fort McMurray, Alberta on May 29 and began shutting in approximately 238,000 barrels per day of production. The company said it is not aware of any damage to its infrastructure and expects a full restart of the site in the near term. CANADIAN NATURAL RESOURCES ( opens new tab - JACKFISH LAKE: Canada's largest oil and gas producer said on May 31 it had evacuated workers from its Jackfish 1 thermal in situ operations south of Fort McMurray, Alberta and completed the safe, temporary shut-in of approximately 36,500 bpd of bitumen production. MEG ENERGY - CHRISTINA LAKE REGIONAL PROJECT: Oil sands company MEG ( opens new tab said on May 31 it had evacuated non-essential personnel from its Christina Lake regional project site south of Fort McMurray. The company said the wildfire damaged a power line connecting the project to Alberta's electricity grid, which was delaying the planned startup of MEG's phase 2B operations. They represent approximately 70,000 bpd of production.
Yahoo
12 hours ago
- Business
- Yahoo
Alberta's wildfires disrupt 350,000 barrels of daily crude production
Alberta's wildfires have led to the suspension of approximately 350,000 barrels per day (bpd) of heavy crude production, which constitutes around 7% of Canada's total oil output. The Caribou Lake Wildfire, along with other uncontained fires, poses a significant threat to oil sands operations in the region. The wildfire, which has spread across 61,500 hectares (ha) near the Saskatchewan border, has forced companies such as Cenovus Energy, MEG Energy and Canadian Natural Resources to curtail their operations. As of early Monday, the fires had grown to at least 10ha in size and were within approximately 10km of oil production facilities that collectively produce around 470,000bpd. Alberta, along with the prairie provinces of Saskatchewan and Manitoba, has experienced a surge in wildfires, leading to the evacuation of thousands of residents. On Monday, 26 wildfires were reported to be burning uncontrollably in Alberta, a significant contributor to Canada's oil production. The interruption in production is especially notable given its similarity to the volume that OPEC+ nations agreed to restore to the global market. This disruption underscores the unpredictable nature of oil supply, particularly at a time when heavy crude supplies are already tight. Oil sands operators had recently reduced output for routine maintenance, and sanctions have further restricted the availability of heavy crudes from countries like Venezuela. A notable incident occurred in 2016 when a wildfire halted operations at oil sands mines north of Fort McMurray, cutting daily production by more than one million barrels. Cenovus Energy announced on Sunday that it expects to resume operations at its Christina Lake oil sands site, which has a capacity of 238,000bpd, in the "near term" following a shutdown that began on 29 May. Similarly, MEG Energy experienced a power outage at its oil sands facility, with maintenance delaying the restart of a section capable of producing 70,000bpd. Canadian Natural Resources has also taken action by evacuating workers from its Jackfish 1 oil sands site, resulting in the cessation of 36,500bpd of production. The region is hopeful for the return of showers by the weekend, which could help contain the wildfires. "Alberta's wildfires disrupt 350,000 barrels of daily crude production" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
CTV News
a day ago
- Business
- CTV News
Alberta wildfires: Several oil and gas companies forced to move their employees as facilities are threatened
Cenovus Energy, MEG Energy Corporation and Canadian Natural Resources had to evacuate workers from sites due to wildfires. Kathy Le has the latest.
CTV News
a day ago
- Business
- CTV News
CTV National News: How wildfires are affecting oil production in Alberta
Watch Cenovus Energy, MEG Energy Corporation and Canadian Natural Resources had to evacuate workers from sites due to wildfires. Kathy Le has the latest.
Reuters
a day ago
- Business
- Reuters
Alberta's wildfires disrupt some 7% of Canada's oil production
CALGARY, June 2 (Reuters) - Wildfires burning in Canada's oil-producing province of Alberta have affected more than 344,000 barrels per day of oil sands production, or about 7% of the country's overall crude oil output, according to Reuters calculations. At least two thermal oil sands operators south of the industry hub of Fort McMurray evacuated workers from their sites over the weekend and shut production as a precaution. Canadian Natural Resources ( opens new tab said it evacuated workers from its Jackfish 1 location and shut in approximately 36,500 bpd of bitumen production. Cenovus Energy ( opens new tab said it evacuated non-essential personnel from its Christina Lake oil sands site, and shut in approximately 238,000 bpd of production. The company said on Sunday it is not aware of any damage to its infrastructure and anticipates a full restart of its Christina Lake operations in the near term. MEG Energy ( opens new tab said on Friday it had evacuated workers from its Christina Lake site. While production at the site continues, the company said on Saturday that the fires caused a power outage that is delaying startup of its Phase 2B operations, which represent approximately 70,000 barrels per day of production. Wildfires have also affected some of Alberta's conventional oil-and-gas production. A blaze burning near the town of Swan Hills in the northern part of the province forced Aspenleaf Energy to shut in about 4,000 bpd of production last week. Canada produces about 4.9 million barrels of oil per day. Alberta has 49 active fires and there are 24 active fires in Manitoba and 16 in Saskatchewan, according to provincial data. In parts of Minnesota and North Dakota, air quality reached unhealthy levels on Monday, according to the U.S. Environmental Protection Agency's AirNow page. In 2023, Canadian wildfires blanketed much of the U.S. East Coast in smoke, forcing millions of Americans to stay indoors. Alberta Premier Danielle Smith said on Monday that some 400,000 hectares (988,422 acres) have now burned in the province, up from about 9,000 as of last week. She said nearly 5,000 people have been evacuated, adding that the government is restarting its emergency management cabinet committee out of concerns the situation in the province is worsening. "We've got to be able to respond in a way that is going to be rapid," Smith told reporters in Saskatoon. The Canadian Interagency Forest Fire Centre says that as of June 1, a total of 1.4 million hectares have burned so far across Canada. Last week, Manitoba urged 17,000 people to evacuate due to fires in the province's remote north. Wildfires have hit oil and gas production in Canada several times in the past decade. Last year, Suncor Energy ( opens new tab, Canada's second-largest oil sands producer, temporarily curtailed production at its Firebag complex due to a nearby blaze. In May of 2023, companies shut in at least 319,000 barrels of oil equivalent per day, or 3.7% of Canada's total production, as more than 100 wildfires burned in Alberta. In 2016, thousands of oil sands workers were evacuated as a monster wildfire destroyed part of the community of Fort McMurray, forcing companies to reduce their oil output by a million barrels per day.
