Canadian Natural Restarts Jackfish Oil Sands Site as Wildfire Risk Recedes
Canadian Natural Resources (TSX: CNQ), the country’s largest oil producer, has resumed operations at its Jackfish 1 oil sands facility in northern Alberta after deeming nearby wildfires no longer a threat. The site, which was shut down over the weekend as a precaution, is expected to return to full output of approximately 36,500 barrels per day (bpd) by Friday.
The decision follows several days of wildfire disruptions across Alberta’s oil patch, with around 344,000 bpd of oil sands production offline earlier this week—roughly 7% of national output. Jackfish 1 was among the first major facilities to halt operations amid intensifying fires south of Fort McMurray.
While Canadian Natural has begun its restart process, other producers remain impacted. As of Wednesday, Cenovus Energy’s Christina Lake site continues to hold back approximately 238,000 bpd, and MEG Energy’s workforce is still evacuated from its operations in the same region.
Despite widespread shutdowns, there have been no confirmed reports of material damage to oil and gas infrastructure in the affected areas.
The wildfire-induced slowdown has also pressured regional natural gas markets. Spot gas prices at Alberta’s AECO hub dropped near zero this week, hitting just six cents per million British thermal units (MMBtu) on Tuesday and rising slightly to ten cents on Wednesday. According to Tudor, Pickering, Holt & Co., the price collapse is linked to reduced gas demand from curtailed oil sands operations.
As firefighting efforts continue, producers are monitoring conditions closely while working to stabilize output and safeguard infrastructure across the region.
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