(Add Shell restarting Albian oil sands project, Imperial Oil
shutting down Kearl project)
By Rod Nickel
FORT MCMURRAY, Alberta, May 9 (Reuters) - Canadian officials
who got their first glimpse on Monday of the oil sands boomtown
of Fort McMurray since a wildfire erupted said they were
encouraged by how much of it escaped destruction, estimating
almost 90 percent of its buildings were saved.
But a tour of the fire-ravaged city also revealed scenes of
utter devastation, with blocks of homes reduced to blackened
foundations, front steps and metal barbecues.
Alberta Premier Rachel Notley said 2,400 structures had
burned within the city while almost 25,000 were saved.
The fire that has ravaged some 204,000 hectares (504,000
acres) of the western Canadian province moved far enough from
the evacuated town of 88,000 people to allow an official
delegation led by the Notley to visit.
"We were really encouraged today to see the extent of
residential communities that were saved," Notley said. "That of
course doesn't mean there aren't going to be some really
heartbreaking images for some people to see when they come
back."
Reporters on the tour viewed the charred rubble of the
community's Beacon Hill neighborhood, where some 80 percent of
the homes had been burned to the ground and the wreckage of
blackened and melted cars remained on roads.
Notley said it was not safe for residents to enter the city
unescorted, with parts still smoldering and large areas without
power, water and gas. She said repair crews will have weeks of
work ahead of them.
Fire Chief Darby Allen told reporters that 85 percent of the
buildings in Fort McMurray had survived the blaze, offering a
slightly lower estimate than Notley. All schools except one that
had been under construction were intact. Notley credited the
efforts of firefighters who battled the out-of-control blaze for
days.
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.
Canada's largest property and casualty insurer Intact
Financial Corp IFC.TO expects to suffer losses ranging from
C$130 million to C$160 million ($100 million-$123 million) from
the wildfire. Intact used satellite imagery and geocoding
technology to see if buildings were a total loss or partially
destroyed.
Analysts said Intact's forecast implied overall industry
losses of between C$1 billion C$1.1 billion, much less than one
earlier forecast of C$9 billion.
Prime Minister Justin Trudeau vowed a multi-year commitment
by the national government to rebuild Fort McMurray but gave no
details.
Fire officials said the blaze was still large, growing and
dangerous. But they noted cooler weather had slowed the fire's
spread and would help in the coming days. High temperatures and
winds accelerated the blaze last week.
RAIN NEEDED TO TAME 'BEAST'
The cool weather 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.
"This beast is so big, we need rain to fix it," Public
Safety Minister Ralph Goodale said.
Government weather forecasts show the first possibility of
rain on Wednesday with a 30 percent chance.
Notley said she expected to be able to provide a schedule
within two weeks for the return of residents. Thousands of
evacuees are camped in nearby towns.
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.
In one encouraging sign for industry, Royal Dutch Shell Plc
RDSa.L said it restarted production at a reduced rate at its
Albian oil sands mining operation in Alberta, and it plans to
fly staff in and out.
But Statoil ASA STL.OL said it will suspend all production
at its Leismer oil sands project in northern Alberta until
midstream terminals needed to transport crude oil via pipeline
reopen.
And Imperial Oil IMO.TO said it completed a controlled
shutdown of its Kearl oil sands mining project due to
uncertainties associated with logistics.
Other shutdowns include Nexen Energy's Long Lake facility,
Suncor Energy's SU.TO base plant operations, a Syncrude
project and Conoco Phillips' Surmont project COP.N .
Nearly all of Fort McMurray's residents escaped the fire
safely, although two teenagers died in a car crash during
the evacuation.
($1 = 1.2997 Canadian dollars)
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(With additional reporting by David Ljunggren in Ottawa, Nia
Williams in Calgary and Matt Schuffman, Ethan Lou and Allison
Martell in Toronto; Writing by Scott Malone and Jeffrey Hodgson;
Editing by Jeffrey Benkoe and Cynthia Osterman)