Repair crews were expected to assess wildfire damage to the Canadian energy boomtown of Fort McMurray on May 10 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 May 9 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% 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 May 9.
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 the industry, Royal Dutch Shell Plc (NYSE: RDS.A) said on May 9 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 Ltd. (NYSE: IMO) said late on May 9 it completed a controlled shutdown of its Kearl oil sands mining project, blaming the uncertainties associated with logistics.
Recommended Reading
BP Energy Outlook: Oil Demand Diminishes, NatGas, LNG a Wildcard
2024-07-16 - BP’s energy outlook presents a view at current trends for energy use through 2025 and a net zero case, which would require a history-defying shift from adding fuel sources to substituting them.
What's Affecting Oil Prices This Week? (June 10, 2024)
2024-06-10 - Stratas Advisors says the latest EIA report illustrates that U.S. production growth has stagnated with U.S. oil production remaining at 13.1 MMbbl/d, which is unchanged from the previous 12 weeks.
OPEC Lowers Oil Demand Forecast, May Delay Unwinding Cuts
2024-08-12 - OPEC made its first cut in its 2024 forecast since July 2023, and comes after mounting signs that demand in China has lagged expectations due to slumping diesel consumption.
EIA: Natural Gas Prices to Increase in November
2024-08-16 - Crude prices will strengthen through 2024 before falling in 2025 due to lower liquid fuels consumption, particularly in China, the U.S. Energy Information Administration reported.
Commentary: Oil Traders Ignore Dwindling Stocks to Focus on Economy
2024-08-08 - Oil prices have retreated in recent weeks as traders look past the current depletion in global inventories to focus on the threat of possible economic slowdowns.