Fires, floods affecting Alberta oil production

The wildfires burning in northern Alberta have forced some energy and transport companies to shut down. The town of Slave Lake has been evacuated since hundreds of homes and other buildings were destroyed.

Penn West Petroleum of Calgary has shut down heavy oil production of 25,000 to 30,000 barrels a day in the area and suspended drilling. The company's operations have also been curtailed by 20 per cent by flooding in Manitoba and Saskatchewan.

Cenovus Energy, meanwhile, was about to suspend production of 22,000 barrels a day at its Pelican Lake heavy oil operation. A southern section of the Plains All American pipeline from Slave Lake has been closed, leaving the oil company no way to move oil out.

On top of this, CN Railways has halted service in the area around Slave Lake.

Another Calgary firm, Canadian Natural Resources Ltd., said it had removed 1,300 personnel from two work camps as a result of a forest fire near its Horizon Oil Sands site. The fire has had no effect on any facilities at the Horizon operation, the company said.