Wildfires in Alberta are endangering about 5% of Canada’s crude oil production. A significant fire near Cold Lake is creeping closer to major oil sites, threatening the daily output of around 245,000 barrels. Currently, there are 26 uncontrolled fires in Alberta, a sharp rise from just four earlier in the week.
The blaze near Cold Lake has expanded to over 9,000 hectares. In response, Cenovus Energy has evacuated non-essential workers from its nearby Foster Creek site. Meanwhile, Canadian Natural Resources Ltd. reports that operations at its Kirby oil sands site, which is farther from the fire, remain stable.
Canada is the fourth-largest oil producer globally, and wildfires have long posed a threat to its energy sector, particularly during the spring and summer months. A notable incident in 2016 saw a fire in Fort McMurray shut down significant oil sands production, taking more than 1 million barrels a day offline.
The current situation is exacerbated by strong winds and high temperatures, with daytime highs reaching 30°C (86°F). These conditions are making it difficult for firefighters to contain the blazes. Meteorologists predict that while temperatures may drop slightly, winds could gust up to 50 kilometers per hour, complicating firefighting efforts.
Air quality is also a major concern, as smoke from the fires has caused unhealthy conditions across Alberta, Saskatchewan, and Manitoba. The town of Swan Hills has been evacuated due to a nearby fire, and smaller oil producers like Aspenleaf Energy have had to shut down operations, affecting about 4,000 barrels of daily production.
The wildfire crisis isn’t limited to Alberta. Manitoba has declared a province-wide state of emergency, and Saskatchewan followed suit shortly after. Thousands of residents are being evacuated as fires intensify across the region.
As the situation develops, the impact on Canada’s oil production and local communities continues to grow, raising concerns about both environmental and economic repercussions.