Plans to bring back more than 1 million barrels a day of lost production in Canada’s oil sands are being delayed as wildfires sweeping across northern Alberta threaten operations again, prompting Suncor Energy Inc. to evacuate three sites it was restarting. The nation’s largest oil producer flew employees from its MacKay River, Firebag and base plant sites as it shut down the facilities days after beginning the process of resuming output. The wildfire that’s raged for more than two weeks circled back north of Fort McMurray toward the main operations in the oil sands, the world’s third-largest reserves.
About 8,000 workers were removed from lodging facilities as the blaze grew to about 3,550 square kilometers (1,370 square miles), Alberta Premier Rachel Notley said Tuesday. That’s an area bigger than Rhode Island. Horizon North Logistics Inc.’s Blacksand lodge, a work camp about 40 kilometers (24 miles) northwest of Fort McMurray that serves Suncor and Syncrude Canada Ltd. sites, some of the largest oil-sands facilities, was destroyed by fire, Notley said. “Mother Nature continues to be our foe in this regard and not our friend,” Notley said in a briefing. Westerly winds were forecast to push the fire closer to Suncor and Syncrude oil-sands plants, though both facilities are very resilient, she said. “We expect fire growth in the area of many of these camps.”
Production Cuts
The delay to restarts is another setback for Canada’s economy and energy industry in what is already estimated to be the country’s costliest disaster, following the evacuation of more than 80,000 people from their homes earlier this month as entire neighborhoods in Fort McMurray were razed. Oil-sands output has been reduced by about 1.2 million barrels a day, according to estimates from the Conference Board of Canada. The research group forecasts that 14 days of production cuts represents a hit of about C$985 million ($763 million) to the Alberta economy.
Suncor is focused on moving people out of the oil-sands region, Sneh Seetal, a spokeswoman, said by phone. The MacKay River, Firebag and base plant mine sites together have a capacity to produce about 740,000 barrels a day. Syncrude, a joint venture controlled by Suncor, also evacuated workers because of the fire threat, Will Gibson, a spokesman, said in an e-mail. Syncrude’s Mildred Lake and Aurora mines together have a capacity to produce about 407,000 barrels a day.
Rain Forecast