Wildfires in Canada’s main oil province of Alberta have shut down production

TORONTO (Reuters) – Cold weather across Alberta on Monday helped firefighters battle widespread wildfires in Canada’s main oil-producing province, but the government said it could take months before all the fires are under control.

Alberta declared a state of emergency on Saturday in response to wildfires that have displaced nearly 30,000 people and prompted energy producers to shut down at least 185,000 barrels of oil equivalent per day (boepd), about 2% of Canada’s production.

By Monday afternoon, 98 fires were still active, with nearly 30 out of control.

Officials said more than 700 firefighters have been deployed and Alberta has requested 1,000 more from other provinces, who are expected to arrive over the next week.

The provincial government has also invited volunteers with firefighting skills to register with the province to help fight fires. Alberta Premier Danielle Smith said the government wanted to take advantage of the many people across the province with firefighting experience, particularly in Aboriginal communities.

“Some of these fires could last for months, so if we can use resources that are already there, people who are able to help, we want to be open to doing that,” Smith told a news conference.

Alberta is asking for federal assistance

Alberta has formally requested assistance from the federal government, including military assistance, and Smith spoke with Canadian Prime Minister Trudeau earlier in the day.

“We’ve talked a lot about the different ways the federal government can help and we’re going to work to make sure we support Albertans across the province as necessary,” Trudeau said in televised remarks.

Canada is the fourth largest producer of crude oil in the world, and about 80% of its oil comes from Alberta.

The oil and gas shutdowns appeared temporary and had no immediate impact on energy prices, said Marc Oberstotter, head of upstream research in the Americas for consultancy Wood Mackenzie.

BMO Capital Markets said in a note that there were still no reports of significant damage to infrastructure and production is expected to be restored once the wildfires are under control.

Canada’s daily natural gas exports to the United States fell to 6.7 billion cubic feet on Sunday, the lowest level since April 2021, according to data provider Refinitiv.

Pipeline company Enbridge Inc (ENB.TO) said its assets were operating as normal but the company “anticipated some minor fluctuations in volumes as some customers in exploration and production may be impacted,” according to a statement.

TC Energy (TRP.TO) said it has shut down two compressor stations on the NGTL gas pipeline system, which connects most of the natural gas produced in western Canada to domestic and export markets.

“Other sections of the NGTL system and other pipeline systems continue to operate safely and we continue to monitor the situation closely,” TC said in a statement.

Alberta is also the largest cattle-producing province in Canada. Some ranchers have been moving cattle away from the fires to rodeo grounds or other public places, but no cattle are known to have died from the fire or smoke, said Karen Schmid, an official with the Alberta Meat Products Industry Group.

Farmers in some areas are already dealing with drought, Schmid said, and the fires are likely to lead to an increase in the growth of hay and grass to feed livestock. ($1 = 1.3319 Canadian dollars)

(Reporting by Denny Thomas). Editing by Andrew Heavens

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