As fires rage near Fort McMurray, oil output faces significant disruptions, echoing past economic impacts
Alberta, home to the world's third-largest crude oil reserves is currently facing two out-of-control wildfires including a 30-hectare blaze in the Canadian oil sands as reported by BNN Bloomberg.
This has prompted an evacuation alert for a community near Fort McMurray, the largest city in the region known as the oil sands capital.
The Regional Municipality of Wood Buffalo issued an alert to residents of Saprae Creek, located about 25 kilometres southeast of Fort McMurray, advising them to prepare for a possible evacuation if the fire spreads toward their community.
In a related incident, residents of Bilby Common, northwest of Edmonton, were instructed to prepare to evacuate within 30 minutes at 12:30 pm local time due to another wildfire burning close to their area.
These fires are occurring in a province critical to Canada's economy due to its substantial oil production capacity.
Unusually hot, dry weather last year contributed to the worst-ever wildfire season in the country, which darkened skies over US cities like New York and led Alberta oil and gas drillers to shut down approximately 300,000 barrels of oil equivalent per day of production.
Currently, over 65 percent of Canada is abnormally parched or in drought, raising fears of another challenging, smoke-filled summer.
The situation recalls the devastating wildfires eight years ago that razed vast tracts of Fort McMurray, displacing tens of thousands of residents for over a month and resulting in the suspension of more than 1 million barrels a day of oil production.
