Alberta Outlines 2025 Wildfire Response Budget

Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Reporting some blazes already in their province, ministers in oil-rich Alberta are proposing significant funding in a new budget to control wildfires.

Last year's wildfire season got off to an early start, with parts of the municipality of Wood Buffalo, located near oil-rich Fort McMurray in northeast Alberta, placed under evacuation orders in March.

Fires later torched the resort town of Jasper and the surrounding Jasper National Park in Alberta. The provincial government said it would provide as much as C$159 million (US$110 million) to support rebuilding efforts in Jasper.

Should it pass, the provincial budget for this year would allocate C$1.4 million (US$967,000) over the next three years to enhance the wildfire response capabilities. Another C$900,000 (US$622,000) would support fire-weather monitoring.

"There is nothing more critical than protecting Albertans, our homes and our communities from the effects of wildfires," said Todd Loewen, the provincial minister of forestry and parks.

The impact on the energy sector in 2024 was minimal relative to the past. Cenovus Energy (NYSE:CVE) (Calgary) called on non-essential staff to leave its Sunrise project, just outside of Fort McMurray, due to fires raging from the Firebag complex, but saw no major operational impacts.

Suncor Energy Incorporated (NYSE:SU) (Calgary), meanwhile, was the only company to experience an actual production issue last year, briefly closing its 215,000-barrel-per-day (BBL/d) Firebag oil sands operation.

In announcing preparations for this year, the provincial government paid special attention to prevention efforts in its wildfire response. Last year, there were 282 wildfires caused by residential or recreational fires, compared to 399 in 2022.

"It is more important than ever to continue building on that progress to further reduce the risk of future wildfires," Alberta's government said. "As part of these efforts, Alberta's government is renewing its commitment to public awareness and education campaigns on safe practices, while also enforcing fire bans when necessary."

The 2023 wildfire season was the most destructive on record, with more than 16.5 million hectares--or some 64,000 square miles--lost. A typical wildfire season leaves 2.5 million hectares destroyed.

Wildfires in the region have in the past curtailed about 1 million BBL/d in oil production. In 2023, more than 235,000 people were ordered to evacuate their homes during what was the worst wildfire season in the nation's history.

Alberta recorded 21 wildfires this year that consumes 78 hectares so far. At this point last year, there were 34 fires with 306 hectares burned.

Rich in natural resources, Alberta's government expects crude oil production to increase 17% from 2022 levels by this year, to average 569,600 BBL/d. Natural gas production is expected to increase from 11 billion cubic feet per day (Bcf/d) in 2022 to 12.1 Bcf/d by 2032.

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