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Researched by Industrial Info Resources (Sugar Land, Texas)--Alberta oil sands operations that were shut down as a result of the massive wildfire face uncertainty regarding when they will be able to restart. Fort McMurray, which is considered the hub of the oil sands region, remains too dangerous to enter and will need a lengthy cleanup, according to fire officials.
Firefighters had yet to control the blaze as of Tuesday. The Fort McMurray wildfire covered 204,000 hectares (505,000 acres), and roughly 2,400 structures have been destroyed, according to Alberta's government.
Industrial Info's PECWeb Geolocator identifies 54 plant facilities and 149 projects worth more than $100 billion within a 50-mile radius of Fort McMurray.
The Canadian subsidiary of Norwegian firm Statoil ASA (NYSE:STO) closed down its Leismer demonstration plant, according to news reports. A spokeswoman told news agencies the facility was producing around 20,000 barrels of bitumen per day before the start of the fire. Two active projects related to the plant are the phase II (in the engineering stage) and III (in the planning stage) bitumen production additions, each worth $560 million.
Another shutdown is at the Kearl oil sands mine in Fort McKay, which is 70%-owned by Imperial Oil Limited (NYSE:IMO) (London, Ontario) and 30%-owned by Exxon Mobil Corporation (ExxonMobil) (NYSE:XOM) (Irving, Texas).
Husky Energy Incorporated (Calgary, Alberta) said it closed its Sunrise facility, which is capable of producing 60,000 barrels per day (BBL/d) and was producing half that amount before the start of the fire, according to news accounts.
Syncrude Canada Ltd. (Fort McMurray) said it suspended operations at its Aurora and Mildred Lake sites. Syncrude has a total production capacity of 350,000 barrels per day of crude oil.
Suncor Energy Corporation (NYSE:SU) (Calgary) has reported that its Fort McMurray facilities, also shut down, were not damaged.
"Although the fire reached the southern end of our mine at our oil sands base operations, fire mitigation efforts were successful," Suncor said in a press release. "We continue to monitor the situation closely and current weather conditions and forecasts indicate the fire is moving east, away from our operations."
"Suncor is beginning to implement its plan for a return to operations...Suncor anticipates it will commence its restart once it can do so safely and depending on the availability of critical third-party pipeline infrastructure," the company said. It stated it plans to use temporary camps for workers and have them commute from Calgary and Edmonton. Suncor said it helped to evacuate 10,000 people, including employees, their families and Fort McMurray residents from the area.
Industrial Info reports Nexen Energy's (Calgary) 72,000-BBL/d Long Lake Upgrader complex remains shut down. The facility was shut down by a January 15 explosion. It could possibly be a month or more before it is deemed safe for plant personnel to return due to dangerous conditions in the surrounding area. Nexen has not set a firm restart date for the site's 50,000 BBL/d hydrocracker. Nexen is a unit of the Chinese National Offshore Oil Company Limited (CNOOC) (Beijing, China).
Statoil ASA, Phillips 66 and declared force majeure, according to Bloomberg, which will protect them from liability from unfulfilled contracts due to reasons beyond their control
The shutdown of oil sands operations in the area last week has led to the production loss of as much as 1 million barrels of oil per day (BBL/d), according to news accounts.
The situation prompted Alberta Premier Rachel Notley to schedule a meeting with energy-industry leaders in Edmonton on Tuesday to discuss restart plans in the oil sands, according to Business News Network.
Gordon Gorrie, Industrial Info's vice president of research for the Oil & Gas Industry, says the wildfire is not likely to affect potential project spending in the region. "A lot of projects have been pushed back or delayed anyway, due to the decrease in oil prices from earlier. Because of this, the loss in production that the fire cause won't affect near-term spending." For more information on plant shutdowns that occurred last week, see May 6, 2016, article Canada's Oil Sands Production Takes Big Hit Due to Fort McMurray Fire.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Firefighters had yet to control the blaze as of Tuesday. The Fort McMurray wildfire covered 204,000 hectares (505,000 acres), and roughly 2,400 structures have been destroyed, according to Alberta's government.
Industrial Info's PECWeb Geolocator identifies 54 plant facilities and 149 projects worth more than $100 billion within a 50-mile radius of Fort McMurray.
The Canadian subsidiary of Norwegian firm Statoil ASA (NYSE:STO) closed down its Leismer demonstration plant, according to news reports. A spokeswoman told news agencies the facility was producing around 20,000 barrels of bitumen per day before the start of the fire. Two active projects related to the plant are the phase II (in the engineering stage) and III (in the planning stage) bitumen production additions, each worth $560 million.
Another shutdown is at the Kearl oil sands mine in Fort McKay, which is 70%-owned by Imperial Oil Limited (NYSE:IMO) (London, Ontario) and 30%-owned by Exxon Mobil Corporation (ExxonMobil) (NYSE:XOM) (Irving, Texas).
Husky Energy Incorporated (Calgary, Alberta) said it closed its Sunrise facility, which is capable of producing 60,000 barrels per day (BBL/d) and was producing half that amount before the start of the fire, according to news accounts.
Syncrude Canada Ltd. (Fort McMurray) said it suspended operations at its Aurora and Mildred Lake sites. Syncrude has a total production capacity of 350,000 barrels per day of crude oil.
Suncor Energy Corporation (NYSE:SU) (Calgary) has reported that its Fort McMurray facilities, also shut down, were not damaged.
"Although the fire reached the southern end of our mine at our oil sands base operations, fire mitigation efforts were successful," Suncor said in a press release. "We continue to monitor the situation closely and current weather conditions and forecasts indicate the fire is moving east, away from our operations."
"Suncor is beginning to implement its plan for a return to operations...Suncor anticipates it will commence its restart once it can do so safely and depending on the availability of critical third-party pipeline infrastructure," the company said. It stated it plans to use temporary camps for workers and have them commute from Calgary and Edmonton. Suncor said it helped to evacuate 10,000 people, including employees, their families and Fort McMurray residents from the area.
Industrial Info reports Nexen Energy's (Calgary) 72,000-BBL/d Long Lake Upgrader complex remains shut down. The facility was shut down by a January 15 explosion. It could possibly be a month or more before it is deemed safe for plant personnel to return due to dangerous conditions in the surrounding area. Nexen has not set a firm restart date for the site's 50,000 BBL/d hydrocracker. Nexen is a unit of the Chinese National Offshore Oil Company Limited (CNOOC) (Beijing, China).
Statoil ASA, Phillips 66 and declared force majeure, according to Bloomberg, which will protect them from liability from unfulfilled contracts due to reasons beyond their control
The shutdown of oil sands operations in the area last week has led to the production loss of as much as 1 million barrels of oil per day (BBL/d), according to news accounts.
The situation prompted Alberta Premier Rachel Notley to schedule a meeting with energy-industry leaders in Edmonton on Tuesday to discuss restart plans in the oil sands, according to Business News Network.
Gordon Gorrie, Industrial Info's vice president of research for the Oil & Gas Industry, says the wildfire is not likely to affect potential project spending in the region. "A lot of projects have been pushed back or delayed anyway, due to the decrease in oil prices from earlier. Because of this, the loss in production that the fire cause won't affect near-term spending." For more information on plant shutdowns that occurred last week, see May 6, 2016, article Canada's Oil Sands Production Takes Big Hit Due to Fort McMurray Fire.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
