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OIL AND GAS
Canadian wildfire flareups force more oil region evacuations
By Michel COMTE
Ottawa (AFP) May 17, 2016


Fires evolve to threaten Alberta oil sands
Fort Mcmurray, Alberta (UPI) May 17, 2016 - After moving to return some services to normal, energy companies working in Alberta said Tuesday there were evacuating staff in response to wildfires.

Canadian energy company Suncor, one of the largest operators in the Alberta oil sands, said it was moving its personnel out of the Wood Buffalo municipality under orders from regional emergency authorities.

"Also as a precautionary measure, we have started a staged and orderly shutdown of our base plant operations," the company said in a statement Tuesday.

As much as 1 million barrels per day in Canadian oil sands production are impacted by wildfires that have been raging in Alberta near the area of Fort McMurray for most of the month. Some companies started moving staff back to the region last week and Suncor stressed that there's been no damage to any of its facilities.

Authorities in Wood Buffalo said about 8,000 people are impacted by evacuation orders due to evolving fire conditions. As many 90,000 people were initially evacuated from the area in the largest emergency response in Canadian history.

The provincial government of Alberta said the situation remains "out of control," with 15 fires blazing over an area estimated to cover nearly 1,100 square miles.

Canadian energy company Enbridge said it was now working with provincial firefighters to help contain a fire near a facility about 40 miles southeast from Fort McMurray. While the facility is designed to minimize the impact of fires, the company said it was spraying down structures as a precaution.

"Some pipelines into and out of the terminal are operating, and we continue to monitor the situation very closely," the company said in a statement.

Alberta Premier Rachel Notley, who met recently with oil company executives, said the situation in Fort McMurray was fluid. Mandatory evacuation orders remain in place and some area highways are closed down. Most of the conditions necessary for a full return of Fort McMurray haven't been met.

"This remains an active fire zone," she said in a statement.

Wildfires continued their devastating advance on Tuesday, leading authorities to order more evacuations in Canada's oil sands region surrounding the city of Fort McMurray.

In total, about 8,000 people were forced to leave some 20 camps and facilities north of the city in Alberta province due to thick smoke and flareups.

The evacuation order was issued late Monday (0200 GMT Tuesday) for the area connected by a 50 kilometer (31 mile) stretch of highway between Fort McMurray and the town of Fort MacKay, in the heart of the oil sands.

"The evacuation zone has increased north of the city of Fort McMurray due to evolving fire conditions," the regional municipality of Wood Buffalo said.

"Several camps are affected by this evacuation. Approximately 8,000 people impacted," the statement read.

Some 100,000 residents and oil workers had already been evacuated from Fort McMurray and its surroundings two weeks ago.

Oil company workers had just started trickling back to an area to the north when the latest evacuation was ordered late Monday.

Canada's largest petroleum company, Suncor, was forced to shutter its oil operations almost immediately after getting them back up and running.

Suncor said it "is in the process of transporting personnel from the lodges on Aostra Road and near its base plant facility to other lodges further north."

And as a precautionary measure, "we have started a staged and orderly shutdown of our base plant operations. There has been no damage to Suncor's assets," the company added in a statement.

Another oil company, Syncrude, also operates in the area.

Forest fires that were beaten back last week were once again threatening oil facilities, while releasing a massive cloud of thick, black smoke stretching across the horizon.

The Royal Canadian Mounted Police responded by closing Highway 63 north of Fort McMurray -- the main route in and out of the oil patch.

In their latest bulletin, fire officials reported 19 active fires in Alberta, four more than announced on Monday. Some 2,000 firefighters are battling the blazes, including four that are out of control.

- Thick smoke -

The largest fire near Fort McMurray has scorched nearly 2,900 square kilometers (1,120 square miles) of forests around the city, fueled by hot, dry weather and gusts of wind up to 40 kilometers (25 miles) per hour.

Firefighters have been battling around the clock to safeguard Fort McMurray and nearby oil facilities, and stall the fire's advance eastward toward neighboring Saskatchewan province. It was a mere 10 kilometers (six miles) away from the border as of Monday.

Alberta Premier Rachel Notley mentioned difficult conditions throughout the area, with intense fire producing thick smoke.

Workers in the Fort McMurray area may need gas masks due to the risk posed by the fumes from the fire, Notley said, adding that the air quality is three times worse than acceptable levels.

These conditions would delay repairs to city water and gas infrastructure and push back the return of residents, Notley said.

The worsening situation, after a glimmer of hope last week that the worst was over after one of the largest evacuations in Canadian history, is expected to have a significant economic impact too.

According to the Conference Board of Canada, oil production was reduced by 1.2 million barrels per day on average, depriving government coffers of an estimated $1 billion in oil royalties.


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