UPDATE 1-Canada oil sands producers disrupted anew as wildfire shifts north

Published 2016-05-17, 09:59 a/m
© Reuters.  UPDATE 1-Canada oil sands producers disrupted anew as wildfire shifts north
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(Adds market reaction, further detail on disruptions)
By Nia Williams
CALGARY, Alberta, May 17 (Reuters) - Canadian energy
producers were hit with fresh disruptions on Tuesday after a
massive wildfire burning around the oil sands hub of Fort
McMurray, Alberta, shifted north, forcing the evacuation of
about 4,000 people from work camps.
Suncor Energy Inc SU.TO , one of the area's biggest
operators, said early Tuesday it started a staged and orderly
shutdown of its base plant operations as a precautionary
measure.
Suncor said there had been no damage to its assets and that
it had enhanced fire protection around the facilities.
On Monday, the blaze continued to burn uncontrolled,
covering 285,000 hectares (704,000 acres), officials said. By
Monday evening it was moving 30 to 40 meters (98 to 131 feet)
per minute and had jumped a critical firebreak, where plants and
trees had been removed to stop it from spreading, north of the
city to push into the oil sand camp areas.
TransAlta Corp's TA.TO Poplar Creek cogeneration power
plant, which provides power to Suncor, was also shut by early
Tuesday due to the wildfire, according to the provincial
electric system operator.
Suncor and Syncrude Canada late Monday confirmed they had
evacuated workers from the affected area.
The sudden movement of the fire prompted the evacuation of
some 4,000 people from work camps outside Fort McMurray, with
all northbound traffic again cut off at the city, the Regional
Municipality of Wood Buffalo said on Monday.
Global oil prices touched a six-month high on Tuesday, with
the Canadian outages among factors lending support. O/R
Canadian energy stocks were mostly higher on Tuesday, helped
by firmer crude prices, though some oil sands producers that
have been hurt by the fire were lower.
The entire population of Fort McMurray, about 90,000 people,
was forced to flee nearly two weeks ago as the uncontrolled
wildfire raged through some neighbourhoods and destroyed about
15 percent of structures.
Roughly a million barrels per day of oil sands crude
production was shut down as a precaution and because of
disruptions to regional pipelines. Much of that production
remains offline.
Firefighters have managed to protect much of Fort McMurray
but evacuated residents have not been allowed to return to their
homes, partly because of hot spots around the community.

(With additional reporting by Jeffrey Hodgson in Toronto and
Julie Gordon in Vancouver; Editing by Jeffrey Benkoe)

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