Wildfires In Canada Force 30,000 To Flee, Slash Oil And Gas Production

Wildfires In Canada Force 30,000 To Flee, Slash Oil And Gas Production:

Canada’s top oil-producing province, Alberta, declared a state of emergency on Saturday as more than 100 wildfires raged across the region.

On Monday, there were 100 wildfires, 29 of which were classified as out of control. Evacuation orders have been posted for 30,000 residents in the province.

Bloomberg said numerous companies shut down 234,000 barrels a day of oil and gas production.

The fires are striking Canada’s main natural gas production region, including the prolific Montney and Duvernay formations, an area studded with wells and processing plants and criscrossed by pipelines. The region also is a major center for light oil production, and the disruptions have sent prices for some local grades of crude surging.

Edmonton Mixed Sweet’s discount to West Texas Intermediate narrowed by more than a third to $2.50 a barrel, the smallest discount since March, and Syncrude Sweet’s premium grew to $3.50 a barrel, data compiled by Bloomberg show. Condensate’s discount narrowed to $3.20 a barrel.

One community under evacuation order as of Sunday was Fox Creek, a major center for light oil and gas drillers. Energy facilities and local residents were also being evacuated in Grande Prairie, provincial officials said. -Bloomberg

NatGas for spot delivery at the Alberta Energy Co.’s hub jumped 34% to the equivalent of $2 per million British thermal units due to disruptions.

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