July 24 (Reuters) - Hundreds of uncontrolled wildfires
burned across western Canada on Wednesday, putting more
communities under evacuation alert and raising concerns about
the blazes impacting Canadian crude production.
There are 430 active wildfires in British Columbia and 177
active wildfires in Alberta, including more than a dozen in the
Fort McMurray region, Canada's key oil sands hub.
This week British Columbia was hit by more than 58,000
lightning strikes, according to the provincial wildfire agency,
sparking scores of new blazes in forests that are tinder-dry
after a three-week heat wave.
Around 25,000 people, including residents and visitors, were
forced to evacuate the popular tourist town of Jasper, Alberta,
and its surroundings early Tuesday as a wildfire neared.
The Canadian government-owned Trans Mountain pipeline, which
can carry 890,000 barrels per day (bpd) of oil from Edmonton to
Vancouver and runs through Jasper National Park, said on
Wednesday it was still operating safely and using sprinklers to
protect its infrastructure.
Alberta officials said 17,500 residents had been forced to
leave their homes because of wildfires, while British Columbia
has issued 19 evacuation orders and 28 evacuation alerts.
Many communities in western Canada are blanketed by thick
smoke, including Alberta's largest city Calgary where residents
were advised to limit time outdoors.
Imperial Oil ( IMO ) said it has reduced non-essential
staff at its 275,000-bpd Kearl oil sands site, approximately 70
km north of Fort McMurray, in northern Alberta as a precaution.
Imperial said there was no direct impact on operations at
the moment and it continues to monitor the situation closely.
Earlier this month Suncor, Canada's second-largest
oil company, temporarily curtailed some production and evacuated
non-essential workers from its 215,000-bpd Firebag site because
of a nearby fire.
About two-thirds of Canada's five million barrels per day of
production comes from the oil sands region and the worsening
wildfire situation is fuelling concerns among some analysts that
production could be cut significantly.
"While wildfires have already forced some producers to
curtail production, these fires still threaten a large amount of
supply," ING Group analysts said in a research note.
The small curtailments so far have been offset by a drop in
demand after storms in Illinois forced Exxon Mobil's ( XOM )
Joliet refinery, a major consumer of Canadian heavy crude,
offline for a week, one Calgary-based trader said.
The wildfire danger level is designated as "extreme" across
the Fort McMurray forest area and a fire ban is in effect for
the entire area, the Alberta government said on Tuesday, adding
that one major blaze is less than 7 km away from industrial
facilities, but containment lines were mostly holding.