Wildfires in Canada’s oil-rich province of Alberta have forced oil and gas companies to suspend operations, sending gas flows between Canada and the US to their lowest level in two years.
Oil and gas production was reduced by 319,000 barrels of oil equivalent, or 3.7% of the country’s total production. On Thursday, 92 active wildfires drove more than 10,000 people from their homes.
Officials in Alberta are warning of more wildfires ahead of hot and dry days in the country. Even as firefighters are making progress in fighting the fires, the lack of oil and gas from Canada to the US has caused prices to rise.
The amount of gas flowing between Canada and the US dropped to 6.4 billion cubic feet per day as wildfires disrupted production. Gas futures are up 13% in the US over the past two weeks as Canadian imports fell. US natural gas futures were also up 2% on Thursday, hitting a two-week high.
Alberta produces 80% of all Canadian crude oil. Fox Creek, an important center for light oil and natural gas plants, was particularly affected by the fires.
With provincial elections taking place in Alberta on May 29th, Alberta’s prime minister will be Danielle Smith Disaster Management Guidelines are under scrutiny.
Opposition leader Rachel Notley was Alberta’s prime minister during the 2016 wildfires that displaced 88,000 people and destroyed 20% of homes in the oil sands hub. The 2016 wildfires were concentrated in northeastern Alberta, while this year the western provinces, with processing plants and pipelines, were hardest hit.
Smith declared a state of emergency in early May, appealed to the federal government for assistance, and announced $935 (CAD$1,264) in emergency payments to those forced to flee.
Record temperatures and dry vegetation have prompted an early start to the wildfire season. Officials warn the fires could continue for several months. reported Reuters. Nearly 2,700 firefighters are currently battling the wildfires, and more are expected to join.
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