By Rod Nickel
FORT MCMURRAY, Alberta, May 10 (Reuters) - Repair crews were
expected to assess wildfire damage to the Canadian energy
boomtown of Fort McMurray on Tuesday as the oil sands companies
surrounding the ravaged city looked at bringing production back
on line.
Political leaders got their first glimpse of the city on
Monday since wildfire forced 88,000 residents to flee for
safety. Alberta Premier Rachel Notley said they were encouraged
by how much of it escaped destruction, estimating almost 90
percent of its buildings were saved.
But the tour also revealed scenes of utter devastation, with
blocks of homes reduced to blackened foundations, front steps
and metal barbecues.
Notley said 2,400 structures had burned within the city
while almost 25,000 were saved.
The fire, expected to grow further on Tuesday, ravaged some
204,000 hectares (504,000 acres) of Alberta. But it also moved
far enough away from the evacuated town to allow an official
delegation to visit on Monday.
Officials warned it was not safe for residents to return,
with parts still smoldering and large areas without power, water
and gas. Notley said repair crews will have weeks of work ahead
of them to make the city safe.
The assessment by officials came a few hours after insurance
experts revised sharply downward their estimates of the cost of
damage from the blaze, which began on May 1.
Cooler weather, which has helped firefighters battling the
blaze, was expected to linger through Thursday, according to
Environment Canada. Still, much of Alberta is tinder-box dry
after a mild winter and warm spring.
Fort McMurray is the center of Canada's oil sands region.
About half of its crude output, or 1 million barrels per day,
has been taken offline, according to a Reuters estimate.
Oil sands companies, which have high fixed costs, are
expected to work as quickly as possible to get production back
online, but face the challenge of many staff and suppliers being
displaced by the evacuation.
In one encouraging sign for industry, Royal Dutch Shell Plc
RDSa.L said on Monday it restarted production at a reduced
rate at its Albian oil sands mining operation in Alberta, adding
it plans to fly staff in and out.
But Imperial Oil IMO.TO said late on Monday it completed a
controlled shutdown of its Kearl oil sands mining project,
blaming the uncertainties associated with logistics.
(Writing Jeffrey Hodgson in Toronto; Editing by Ryan Woo)