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Fires lead Suncor, Shell to cut oil sands output

  • : Crude oil
  • 16/05/04

Suncor Energy, Canada's largest oil sands producer, has reduced production at its northern Alberta operations as massive wildfires force more than 60,000 people to flee.

The Calgary-based producer said late last night that while its oil sands facilities were safe, it was cutting back production at its regional facilities about 25km north of Fort McMurray to "allow employees and their families to get to safety."

The town of 80,000 people was evacuated abruptly yesterday when winds shifted, driving an out-of-control forest fire toward the hub of oil and gas activity in the northeast corner of the province.

Shell Canada also has shut down production at its 225,000 b/d Albian Sands oil sands mining operation to focus on moving workers and families out of the region. Shell said the site is not affected by the fire or the thick smoke which has forced commercial airlines to cancel flights out of Fort McMurray.

A number of oil sands operatives have opened work camps for evacuees and are organizing flights out of the region from company airstrips. The downturn in the economy and drop in oil prices has seen producers dramatically reduce their workforces, leaving thousands of living units available.


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