Wildfires have erupted in Canada's oilsands-producing region of Alberta, with large blazes within 20 kilometres of about half a million barrels a day of crude production.
Six Out-of-Control Fires Burning
A total of six out-of-control fires are burning in the Lac la Biche region, where many of the largest in-situ oilsands well sites are located. The biggest blaze spans 1,000 hectares (2,471.1 acres), according to Alberta Wildfire.
Major Oilsands Sites at Risk
Major oilsands sites including Cenovus Energy Inc.’s Christina Lake, Canadian Natural Resources Ltd.’s Jackfish and Kirby North, and ConocoPhillips’ Surmont are between 11 and 19 kilometres away from wildfires larger than 10 hectares, based on data from the Alberta Energy Regulator and Alberta Wildfire. The approximately 229 residents of the community of Conklin have been advised to prepare for a potential evacuation.
Emails to the three companies, as well as Harvest Operations Corp., a smaller oil sands operator, were not immediately returned.
Wildfire Season Coincides with Global Oil Supply Disruptions
Wildfires can pose a threat to oil production in Canada during spring and summer. This year, the fire season coincides with the curtailment of as much as 20 per cent of the world’s oil supplies from the Middle East due to the Iran war, which has sent crude prices above US$100 a barrel at times over the past three months. Canada is the world’s fourth-largest oil producer, with most crude output coming from the Alberta oil sands and destined for the U.S.
Historical Context of Wildfires and Oil Production
While nearby wildfires do not normally affect operations at oil and gas facilities, last summer's blazes shut down about seven per cent of the country’s oil production at one point. In 2016, massive wildfires shut down more than a million barrels a day for weeks and burned parts of Fort McMurray, the unofficial capital of the oilsands.
Below are facilities within 20 kilometres of out-of-control fires, their proximity to the blazes, and approximate average oil and gas production over the past year, based on Alberta Energy Regulator data.
