Wildfires in Canada force producers to halt oil production

Wildfires in Canada’s main oil-producing province have prompted energy producers to halt production of at least 280,000 barrels of oil equivalent per day (boepd).

Accordingly Reutersmore than 30,000 people displaced as Alberta declared a Emergency in response to the forest fires. The fires primarily affected Fox Creek, a major light oil and natural gas facility center that suspended operations as a precaution.

Canada is the fourth largest crude oil producer in the world, with Alberta producing 80% of its oil. As of Monday, 30 fires were classified as “out of control” while 98 were still active. During that period, Canada’s daily natural gas exports to the US fell to 6.7 billion cubic feet, the lowest level since April 2021. according to data provider refinitive.

At least 1,700 firefighters joined the emergency response from Alberta and neighboring counties as the government called for people with firefighting experience, particularly from Indigenous communities. Alberta also asked for help from the federal government and asked for military assistance.

While production sites assessed with no damage to its key infrastructure, Cenovous Energy reported an impact of 85,000 barrels of oil equivalent per day (boepd) on production. Superior Resources said it has curtailed production of 50,000 boepd, while Crescent has halted production of 45,000 boepd.

The 2016 wildfires in Canada were concentrated in northeastern Alberta and forced the shutdown of more than a million barrels a day of oil sands production. This year, the western provinces containing processing plants and pipelines are worst affected. Operators here drill into rock formations including the Clearwater, Montney and Alberta formations.

The state-operated Trans Mountain Pipeline remains operational and has implemented mitigation measures, including a perimeter sprinkler system at its pumping station. The pipeline serves as the only link transporting Canadian crude oil to the Pacific coast.

Alberta Premier Danielle Smith announced emergency payments of $935 for people who had to be evacuated for seven days or more. He added that the Fires can persist For several months.