Statistics Canada: Wildfires Took Toll on Oil & Gas Production Capacity Utilization
The wildfires that raged through parts of Alberta last spring put a dent in Canada’s industrial capacity utilization for the second quarter, according to newly released numbers from Statistics Canada. Canadian industries operated at 80% of its production capacity in second-quarter 2016, down from 81.4% in the previous quarter, and 80.2% in second-quarter 2015, according to the national statistical agency, which cited lower oil & gas extraction in the wake of the wildfires as the main source of the decline.
Oil & gas extraction capacity utilization in the second quarter of this year was 73.9%, down 4.2 percentage points from the first quarter, and down 1.2 percentage points from second-quarter 2015.
Suncor Energy (NYSE:SU) (Calgary, Alberta) reported in July a second-quarter operating loss of C$565 million ($439 million), driven by the shut-in of oil sands production in response to the forest fires, combined with low crude oil prices. The fires curtailed oil sands production by 20 million barrels, Suncor said.
The wildfires also took a pricey toll on government coffers. The Alberta government forecasts the fiscal impact to be $500 million, which includes $300 million in lost revenue, resulting in a 2016-17 budget deficit estimated at $10.9 billion for the provincial government, which is $527 million higher than previously estimated.
Industrial Info is tracking 355 active oil & gas projects in Alberta worth $115.48 billion. In all, Industrial Info’s Oil & Gas Production Database is tracking 5,000 active projects valued at $1.62 trillion, and 6,900 operational and pre-commissioned plants.
For more information, please subscribe to the Industrial Info blog.