By Amanda Stephenson
CALGARY, May 31 (Reuters) – Wildfire season has returned to Canada’s oil sands region. There were seven active fires in the area on Sunday, increasing risks to communities, workers, businesses and investors.
Canada is the fourth largest oil producer in the world and most of its production is concentrated in the northern forests of Alberta. Wildfires, which have always existed in this environment but are now occurring more frequently due to climate change, have become a constant threat to Canadian oil production.
So far this year, the Canadian oil company has not experienced any significant operational disruptions due to forest fires.
But on Sunday, about seven active fires were burning in the Fort McMurray and Lac La Biche areas of northern Alberta, with some of the fires burning within 20 kilometers (12.43 miles) of key oil sands sites such as Cenovus Energy’s Christina Lake and Canadian Natural Resources’ Jackfish.
Heavy rain was expected to aid firefighters’ efforts throughout the day, and an evacuation warning issued Saturday for the nearby small community of Conklin was lifted Sunday.
While no other communities were threatened by existing fires, the risk of new fires starting due to warm, dry conditions remains “extreme” in the Fort McMurray area, according to fire officials.
The recurring fire threat in Canada’s oil sands region is adding a degree of uncertainty to companies’ spring and summer production forecasts.
Last year, fires forced Canadian oil companies to temporarily halt oil sands production of about 344,000 barrels per day, about 7% of the country’s total crude oil production.
In May 2023, companies shut down at least 319,000 barrels of oil equivalent per day, or 3.7% of Canada’s total production, as more than 100 wildfires burned in Alberta.
The most extreme example occurred in 2016, when thousands of oil sands workers were evacuated when a devastating wildfire destroyed part of the Fort McMurray community. At the height of the disaster, companies were forced to reduce their oil production by a million barrels per day.
(Reporting by Amanda ​Stephenson in Calgary; Editing by Bill Berkrot)