Canada’s oil sands production could take weeks to recover

The temporary shutdown of the area’s production sites continues however some projects are slowly restarting as the fires subside. The EIA estimates that disruptions to oil production averaged around 800 thousand barrels per day in May, with a daily peak of more than 1.1 million barrels per day.

Despite the restart of some projects, it could still take weeks for production to return to previous levels. The EIA expects disruptions to average 400,000 barrels per day in June.

The oil sands facilities are located mostly to the north of the fires and were not initially threatened by the fires. However, as winds pushed the fires northward, oil sands facilities and work camps had to be evacuated.

Continue reading…