Alberta Wildfires Disrupt 350,000 BPD Oil Production, Threaten Canada Energy Supply

Wildfires in Alberta, Canada, have forced the shutdown of approximately 344,000 to 350,000 barrels per day (bpd) of oil production, representing about 7% of the country's total crude output. Major producers including Canadian Natural Resources, Cenovus Energy, and MEG Energy evacuated workers and halted operations at key oil sands sites such as Jackfish 1 and Christina Lake, with Cenovus alone shutting down 238,000 bpd. The fires have spread across tens of thousands of hectares near the Saskatchewan border, threatening facilities that collectively produce around 470,000 bpd, and have prompted evacuations of thousands of residents. This disruption arrives amid already tight heavy crude supplies due to recent maintenance and international sanctions, raising concerns about potential supply shortages and gasoline price increases, especially for U.S. refineries reliant on Canadian heavy crude. The situation mirrors previous wildfire impacts, such as the 2016 Fort McMurray fire, which halted over a million barrels per day, underscoring the vulnerability of oil supply to natural disasters. Canadian Prime Minister Mark Carney has engaged energy executives to support partnerships aimed at managing the crisis and safeguarding the sector's recovery.