Wildfires in Alberta have shut in 344,000 barrels per day of oil output, according to a Natural News account republished by SHTF Plan. That is 7% of everything Canada produces.
Cenovus, MEG Energy and Canadian Natural are among the producers hit, with flames reported close to production sites. The account says fire is also nearing another 470,000 barrels per day of capacity, and that the damage or shutdowns could last for months and be felt across the continent.
U.S. refiners have the most to lose. They count on Canada for 60% of the crude they process, and the report says they could pay far more as they look elsewhere. Analysts quoted describe tight supply in a market that was already stretched.
Shell’s upgrader trips
A separate problem hit Shell. The company declared force majeure at its Scotford upgrader in Alberta, a plant rated at 300,000 barrels per day, after a unit there tripped. Scotford turns oil sands bitumen into light synthetic crude. It was also due to begin a 65-day maintenance turnaround this month. Two trading sources told the outlet that Shell had trimmed March deliveries by about 20%.
Cobalt refining stops
The other shock came from the mineral side. Sherritt International, the Toronto-based nickel and cobalt producer, began shutting down its Fort Saskatchewan refinery near Edmonton. Expanded U.S. sanctions on Cuba, imposed in May, cut off the feedstock the plant needs.
Sherritt had earlier said the refinery would operate only until mid-June, on the strength of inventory in hand. It mined nickel and cobalt at its Moa joint venture in eastern Cuba and refined the output in Alberta. Natural News calls it the country’s only cobalt refinery.
The company has put shutdown procedures in place. It is keeping the staff and resources needed to hold the site in a safe and secure condition, saving cash, controlling costs and doing maintenance work in case of a restart. It will stay idle until mining and processing at Moa resume and the feed pipeline is rebuilt, and Sherritt says it cannot say when that might be. Its direct participation in the Cuban venture remains suspended. Fertilizers and sulphuric acid, which it sells on, still bring in some revenue.
The Natural News piece frames the two events together as a test of North American energy and critical mineral supply. Its authors say gasoline prices, battery costs and doubts about supply chains could all rise, and they call for policymakers on both sides of the border to act. Those are the outlet’s own conclusions, not figures from a government agency or the companies involved.
Industry observers are watching whether the fires force further production cuts, and whether the Sherritt refinery can start up again once the politics around Cuba change.
Sources
- Alberta Wildfires & U.S. Sanctions Deliver One-Two Punch to Canadian Energy | SHTF Plan
- Alberta wildfires and U.S. sanctions deliver one-two punch to Canadian energy and critical minerals sector â NaturalNews.com
