Firefighters were counting on rain and cooler weather forecast for Monday to help them quell a dramatic start to wildfire season in Canada’s main oil-producing province.
Alberta declared a state of emergency on Saturday in response to wildfires that have displaced nearly 30,000 people and prompted energy producers to shut in at least 185,000 barrels of oil equivalent per day (boepd), about 2% of Canada’s output.
More than 100 wildfires are still active, with more than 30 classified as out-of-control.
“We’re crossing our fingers. We need rain big-time,” said John Kokotilo, fire chief for Lac La Biche county.
Some 80 firefighters arrived from Quebec and Ontario to help efforts, with more expected from other provinces.
Alberta has formally requested assistance from the federal government, Premier Danielle Smith tweeted, adding she had a “very productive call” with Prime Minister Justin Trudeau.
“We talked a lot about the different ways the federal government can help and we will be working to make sure that we’re supporting Albertans right across the province as necessary,” Trudeau said in televised remarks.
Christie Tucker, spokesperson for Alberta’s wildfire agency,said on Sunday the season was “unprecedented in recent memory” because there are so many fires, spread so widely.
Canada is the world’s fourth-largest crude producer, and about 80% of its oil comes from Alberta.
The oil and gas shut-ins looked temporary and have had no immediate impact on energy prices, said Mark Oberstoetter, head of Americas upstream research for consultancy Wood Mackenzie.
So far there are no reports of significant damage to infrastructure and production is expected to be restored once the wildfires come under control, BMO Capital Markets said in a note.
NuVista Energy NVA.TO said it has temporarily shut in about 40,000 boepd as a precaution, while TC Energy TRP.TO said it has shut down two compressor stations on its NGTL gas pipeline system, which connects most of the natural gas produced in western Canada to domestic and export markets.
“Other sections of the NGTL system and other pipeline systems continue to operate safely and we continue to monitor the situation closely,” TC said in a statement.
Canadian daily natural gas exports to the United States fell to 6.7 billion cubic feet on Sunday, their lowest since April 2021, according to data provider Refinitiv. It was not immediately clear how much of the drop was fire-related.
Alberta is also Canada’s biggest cattle-producing province. Some ranchers were moving livestock away from fires to rodeo grounds or other public places, but no cattle are known to have died from fire or smoke, said Karin Schmid, an official at the Alberta Beef Producers industry group.
Farmers in some areas are already dealing with drought, and the fires will likely further set back the growth of hay and grass to feed cattle, Schmid added.