Wildfires in northern Alberta have significantly disrupted operations in the Canadian oil sands sector. This week, Cenovus Energy decided to demobilize non-essential staff at its Sunrise project. The company took this precautionary measure due to ongoing heat and wildfire alerts in the area. Despite these disruptions, Sunrise, which produces around 48,900 barrels per day (bpd), remains unaffected for now.
A Cenovus spokesperson explained, “As a precaution, we are demobilizing those staff who are not directly involved in operations from our Sunrise site.” The spokesperson reassured that operational activities at Sunrise continue without any interruptions.
Cenovus fully owns and operates the Sunrise project, located approximately 60 kilometers northeast of Fort McMurray, Alberta. Another major player, Imperial Oil, confirmed that the wildfires have not affected its Kearl oil sands project, situated about 70 kilometers north of Fort McMurray, as of Tuesday.
In contrast, Suncor shut down its Firebag project last week due to the wildfires. The Firebag project has a capacity of 215,000 barrels of crude per day. Suncor emphasized their readiness to resume full operations as soon as it is safe.
Earlier this year, the authorities in Fort McMurray issued an “extreme” wildfire danger warning for the surrounding forest area. This threat has periodically impacted Canadian crude oil and natural gas production, causing some disruptions. However, operators quickly restored production in most cases.
Despite these challenges, Alberta's oil producers recorded a milestone in May with a record high production level. Oil sands operators reported producing 3.68 million barrels of oil daily. This marks an increase of 254,000 bpd compared to May 2023.
Looking ahead, the Alberta Energy Regulator forecasted a growth in oil production by over 17% by 2033. The province expects to reach a production rate of 4 million bpd. Most of this increase will come from in situ bitumen operations rather than traditional oil sands mines.
Wildfires disrupt Canadian oil sands, causing staff demobilization and production issues. Despite this, output remains high.
Superior trade execution & trading conditions with the NDD method.
The online FX industry provides a platform for investors worldwide to engage in the buying and selling.
Subscribe to our daily newsletter and get the best forex trading information and markets status updates
Trade within minutes!
日本語
English
Comment (0)