Alberta wildfire 3 days from containment as crude output rises

ROBERT TUTTLE

CALGARY, Alberta (Bloomberg) -- An Alberta wildfire that shut 10% of Canada’s oil sands production won’t be contained for three days as Canadian Natural Resources Ltd. ramped up production at its Kirby South site.

The Burnt Lake Fire was 44% contained Tuesday as companies including Cenovus Energy Inc. and CNRL assessed production sites they closed more than a week ago, reducing oil sands output by about 230,000 bpd. CNRL increased output at Kirby after a pipeline started, according to an emailed statement. Production was reduced by 18,000 bopd early last week because of the blaze.

“We are reasonably sure danger has passed,” Alberta Forest Information Officer Leslie Lozinski said in an emailed update late Tuesday. “Limited people have entered the fire area to inspect sites, but it is not business as usual.”

Heavy Western Canadian Select crude’s discount to U.S. benchmark West Texas Intermediate widened 30 cents to $7.30/bbl Wednesday after shrinking to the narrowest since 2009 Tuesday, data compiled by Bloomberg show.

CNRL’s 80,000 bopd Primrose site remained down today, the company Wednesday. Cenovus, which shut the 135,000 bopd Foster Creek project more than a week ago, said staff were “powering up” buildings and testing equipment as the company worked to resume operations, according to an update posted on a company website. MEG Energy Inc. said it resumed maintenance at Christina Lake after suspending work on May 25 because of a nearby blaze.