Alberta Leaders to Visit U.S. Amid Canadian Wildfire Concerns

Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--As wildfires prompt evacuation orders and threaten oil and gas installations, Alberta leaders are headed to Washington D.C. to discuss the importance of bilateral trade.

Some 25,000 residents across three of the central Canadian provinces are under evacuation orders due to wildfires, prompting air-quality alerts further south into the U.S.

MEG Energy (Calgary, Alberta) on Friday evacuated non-essential staff from its Christina Lake Regional Project in Alberta after fires cut power to the facility. The power outage curtailed the start of a second phase of operations, with 70,000 new barrels of production expected to be brought online per day. Most of MEG's activity is related to its Christina Lake Bitumen Production Complex in Fort McMurray, Alberta, which produces up to 135,000 barrels per day (BBL/d), and its proposed May River Bitumen Plant in Conklin, Alberta.

MEG is proposing a series of expansions to Christina Lake that would bring its total bitumen production to 210,000 BBL/d. If built as proposed, the May River complex eventually would produce 160,000 BBL/d. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Plant and Project databases can click here for a list of profiles for MEG's planned and operational plants, and click here for a list of detailed reports for MEG's active and proposed projects.

Also, Cenovus Energy (Calgary) said that 238,000 BBL/d worth of production was impacted by blazes at Christina Lake, though inspections show no damage yet to the facility.

Several other facilities are on standby, and several communities have been evacuated since the outbreak spread last week. Prime Minister Mark Carney met with authorities last week to coordinate an emergency response plan.

"Prime Minister Carney shared that the government would partner with the Canadian Red Cross to match donations and will work with provincial partners to provide essential services, such as temporary lodging, clothing, and food, to those impacted," his office said during the weekend.

Wildfires last year scorched the Jasper National Park in Alberta, though the energy sector was largely spared. Some 1 million barrels of oil production were shut in by blazes in 2016.

Alberta Premier Danielle Smith, however, is leading a delegation to the United States to discuss cross-border energy flows later this week.

"While Alberta seeks to enter new global markets, we know that the U.S. remains our largest trading partner, and we believe that through advocacy--this important relationship can and will be maintained," she said.

Bilateral meetings with U.S. legislators and attending a dialogue on the oil sands sector are on the itinerary, though it was unclear if Alberta's leaders would meet with President Donald Trump. Brokering a revised free-trade deal with Mexico and Canada during his first term in office, Trump has returned to power with an aggressive, protectionist trade agenda in mind.

Mulling the possibility of Canada joining the U.S, Trump enacted stiff tariffs on Canadian goods, but backed down on a threat to impose an import tax on energy.

While rich in its own reserves, the U.S. is a net importer of natural gas from Canada. At around 4 million BBL/d, Canada is the top oil exporter by far, with No. 2 exporter Mexico sending only around 400,000 BBL/d.

At home, meanwhile, Carney held a roundtable discussion with representatives from the Canadian energy sector during the weekend. North American trade corridors are highly integrated, with most of Canada's energy trade headed to the U.S., Canadian leaders are looking to break the North American deadlock through oil and natural gas exports from British Columbia.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).