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Reuters
6 days ago
- Business
- Reuters
Canadian Natural Resources restarts oil sands operation as wildfire risk lessens
CALGARY, June 4 (Reuters) - Canadian Natural Resources ( opens new tab has restarted its Jackfish 1 oil sands site in northern Alberta after determining wildfires in the region were a safe distance away. The country's biggest oil producer said late on Tuesday its operation at the site will ramp up over the next several days, targeting full production of approximately 36,500 barrels per day by Friday. Canadian Natural evacuated non-essential workers from its Jackfish 1 location and halted production as a precaution on Saturday due to wildfires burning south of Fort McMurray. The company is one of several whose operations in Canada's main oil-producing province have been disrupted due to out-of-control wildfires. About 344,000 bpd of oil sands production was offline earlier this week, representing approximately 7% of Canada's crude oil output, according to Reuters calculations. As of Wednesday morning, approximately 238,000 bpd of production remained halted at Cenovus Energy's ( opens new tab Christina Lake oil sands facility. MEG Energy ( opens new tab workers also remained evacuated from that company's Christina Lake regional project. There have been no reports of significant damage to oil infrastructure or company assets due to the fires. The fires are also weakening Canadian natural gas prices. Spot gas prices at Alberta's AECO hub fell to near zero this week (six cents per million British thermal units on Tuesday and 10 cents on Wednesday), likely due to lower demand from oil sands operations, according to consultancy Tudor, Pickering, Holt & Co.
Reuters
03-06-2025
- 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
03-06-2025
- 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
02-06-2025
- 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
02-06-2025
- 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.
