OPEC: Canadian Oil Output Impacted by Wildfires

---

Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--About 350,000 barrels per day (BBL/d) in Canadian crude was sidelined recently by wildfires, the Organization of the Petroleum Exporting Countries (OPEC) said in its monthly market report for July.

The impact on the nation's energy sector has been mild relative to past years. Wildfires in the region have in the past curtailed about 1 million BBL/d in oil production. Earlier this year, Cenovus Energy Incorporated (Calgary, Alberta) said that 238,000 BBL/d worth of production was impacted by blazes at the Christina Lake facility in Alberta, though inspections showed no damage.

IIR Energy is working to drill deeper into the curtailments reported by OPEC.

OPEC economists said the situation was nevertheless bullish for the commodities sector.

OPEC said supplies of heavy, sour crude have been limited this month due to wildfire-related issues in Canada and lower exports from Mexico. Total Canadian liquids production in May, the last month for which OPEC reported Canadian data, declined 251,000 BBL/d month-on-month to average 5.8 million BBL/d, with the bulk of the decline attributed to maintenance at Canadian oil sands projects.

In its World Oil Outlook report, OPEC economists said Canada was among the few oil producers that can expect a meaningful increase in output beyond 2030, as U.S. crude oil production starts to fade.

Total liquids production in Canada is expected to increase by 100,000 BBL/d this year to average 6.1 million BBL/d. Production is expected to expand again to 6.2 million BBL/d by next year. Additional production may come from expansions, optimization and additional well pads, OPEC economists said.

"Sources of further production are primarily expected from the Athabasca, Kearl, Horizon, Christina Lake, Suncor and Foster Creek oil sands projects," OPEC economists wrote in the July report.

That's net positive for Canada, which is looking to expand its trade options outside of North America. U.S. President Donald Trump has threatened Canada with higher tariffs since returning to the White House in January, undermining North American trade relations.

Canada recently signed a free-trade deal with members of the European Union and aims to boost exports to Asia with liquefied natural gas terminals and an expanded Trans Mountain crude oil pipeline in British Columbia.

Canadian Prime Minister Mark Carney on Tuesday spoke with Mexican President Claudia Sheinbaum to discuss trade relations in North America.

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 more than 200,000 current and future projects worth $17.8 Trillion (USD).