Daily Newsletter

24 July 2024

Daily Newsletter

24 July 2024

Wildfires pose threat to Canada’s oil production and climate stability  

Continuing hot weather hot weather has caused a surge in wildfires in Western Canada, with around 170 fires in Alberta alone.

Smruthi Nadig July 24 2024

The oil-producing Alberta province in Canada is currently facing an array of wildfires that are endangering nearly 10% of the region's oil production, leading to the evacuation of one of the country's largest national parks at the height of the summer tourist season, as per news reports.  

On Monday, people in Jasper and the Banff National Park were instructed to evacuate by heading west on Highway 16 towards neighbouring British Columbia due to the imminent threat of the Utopia blaze. 

The recent hot weather has caused a surge in wildfires in western Canada. There are 170 fires in Alberta alone, 53 of which are currently uncontained.  

Jasper, situated just north of Banff National Park, has approximately 4,000 residents but draws millions of tourists annually.  

Notably, the recently expanded Trans Mountain oil pipeline also runs through Jasper. 

As per geographic data from Alberta Wildfire and June production data from the Alberta Energy Regulator, approximately 388,000 barrels of oil per day and 13,400 barrels of natural gas per day are located within 10km of fires that cover at least ten hectares. 

According to the regulator, Alberta is experiencing another extremely dry wildfire season. Historically, most fires related to the energy industry in Alberta occur from April through June. Crude oil production continued to rise in 2023 in Canada, reaching an eight-year high. During the 2023 Alberta wildfire season, human activities caused approximately 61% of all wildfires. 

According to CBC News, Canada's second-largest oil sands producer by volume, Suncor, has temporarily halted production at its Firebag complex due to the fire risk.

Earlier this month, Hurricane Beryl caused the temporary closure of offshore oil platforms along the US Gulf Coast, affecting one of North America's most important areas for energy resources and infrastructure. 

Altair Energy, a junior oil and gas producer, had to close and evacuate its Charlie site north of Grande Prairie after a wildfire engulfed the facility. 

Wildfires are also raging near Fort McMurray, an important oil sands centre in northern Alberta. Reuters reported that this region is responsible for around two-thirds of Canada's daily production of around five million barrels of oil.  

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