Wildfires broke out over the weekend in northern Alberta, with some flames igniting close to oil wells operated by Canadian Natural Resources. The fires have led to a mandatory evacuation order for the town of Swan Hills, Canadian media reported.
According to Alberta authorities, 48% of the wildfires are now under control, but 44% remain out of control. One of the uncontrolled fires is just half a kilometer from a Canadian Natural Resources well and about 20 kilometers from other oil facilities, Bloomberg reported.
Spring marks wildfire season in Canada’s oil-producing regions, where fires sometimes disrupt oil sands production. In 2016, wildfires forced the evacuation of 90,000 people in Fort McMurray and shut down around 1 million barrels per day of oil output.
Last year’s wildfire season also caused some production cuts when fires spread near oil wells, leading to evacuations. Although these cuts were modest overall, Suncor had to shut down an oil sands site capable of producing over 200,000 barrels per day.
This year’s wildfire season is just beginning, and Alberta is preparing for more fires as strong winds are expected later this week. Environment Canada warned that a cold front combined with thunderstorms will bring fast-moving, high-based storms. These storms could cause wind gusts up to 100 km/h, raising the risk of wildfire spread.
The wildfire season comes amid growing worries in Alberta’s oil industry. The sector is feeling the impact of recent price drops driven by the ongoing U.S. tariff war aimed at reducing trade deficits and the faster-than-expected rollback of OPEC+ production cuts made in 2022.