Alberta oil and gas companies stop some production again as wildfires worsen

Some oil and gas companies in Alberta are once again shutting in production as hot and dry conditions exacerbate the wildfire situation in the energy-producing province.

Volatility caused by shifting winds and changing temperature conditions, combined with the sheer size of the geographic area affected, is making it hard even for companies that are directly affected to get a good read on the situation, said Grant Fagerheim, president and CEO of Whitecap Resources Inc.

"You're trying to stay on top of it. You're in constant communication with your field supervisors," Fagerheim said. "But we're living in real time right now."

Whitecap has drilling operations across central and northern Alberta and into northeast B.C., and Fagerheim has spent the last 10 days assessing and reacting as existing fires move and spread and new blazes pop up in other locations.

The company first moved to temporarily shut in 12,000 barrels per day of production on May 5, then increased that to 40,000 last Sunday. It restarted some of its operations this week as cooler temperatures and rain brought relief in some areas, but conditions worsened again on Tuesday.

The company now has approximately 27,000 barrels per day of production curtailed, and Fagerheim said he estimates that hundreds of the company's employees and contractors have either been evacuated or are prepared to evacuate.