Forest fire threat triggers evacuation alarm at Oil Sands Hub

An evacuation warning has been issued for Fort McMurray, a key hub for Alberta’s oil sands industry, amid wildfires in the region.

The Alberta government had four active wildfire warnings on its website as of Sunday evening, all at the advisory level – the level it describes as “prepare to take action” and one step ahead of the critical level described as “take action now.” .

Spring is wildfire season in Canada’s oil country, and the fires sometimes impact oil sands production. Reuters recalls an evacuation of 90,000 people in Fort McMurray in 2016 due to a wildfire that also crippled oil production of about a million barrels a day.

“Due to conditions, there were 11 new wildfires across the province overnight. These are the only two that remain out of control,” Alberta wildfire information officer Melissa Story told Global News on Saturday.

The total number of fires across the province stood at 47, eight of which were the target of efforts to bring them under control, while the rest were already under control. According to the Government of Alberta, two-thirds of all wildfires are caused by humans.

Canada’s oil sands production has increased by 1.3 million barrels a day over the past decade to 3.3 million barrels a day, Reuters reported earlier this month. Further growth is also expected, expected to reach 3.8 million barrels per day by 2030, according to S&P Global Commodity Insight. This would be a 15% increase over current production levels.

“Producers have demonstrated a mix of discipline and adaptability, continually focusing on maximizing existing assets through optimization and efficiency while maintaining stronger balance sheets due to comparatively higher oil prices,” said Celina Hwang, director of North American crude oil markets at S&P Global Commodity Insights.

By Charles Kennedy for Oilprice.com

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