Wildfires raging through Alberta have spread to the main oil-sands facilities north of Fort McMurray, knocking out an estimated 1 million barrels of production from Canada’s energy hub. Fire officials say the out-of-control inferno may keep burning for months without significant rainfall.
The blaze, forecast to expand to more than 2,500 square kilometers (965 square miles) in the next few days, made an “unexpected” move to the north Saturday, rapidly encroaching bitumen mining operations run by Suncor Energy Inc. and Syncrude Canada Ltd. The fires may soon cover an area the size of Luxembourg.
“It is a dangerous and unpredictable and vicious fire that is feeding off an extremely dry Boreal forest,” federal Public Safety Minister Ralph Goodale told reporters Saturday in Regina, Saskatchewan. He said the swirling fire is not yet a threat to any additional communities.
The wildfires have led to combined productions cuts of more than 1 million barrels of oil a day, or about 40 percent of the region’s output of 2.5 million barrels, based on IHS Energy estimates. The cuts, and the mass exodus of more than 80,000 people from the fires raging in Fort McMurray, represent another blow to an economy already mired in recession from the oil price collapse.