Fires costing oilsands sector $70 million a day in lost revenue

, Crisis

Industry analysts say projects could be re-started as soon as a week after the threat of the fire has passed, given potential complications with pipelines and power lines connected to the projects.

CALGARY —  As oilsands companies scramble to determine when they can start producing oil again in fire-ravaged northern Alberta, the industry is estimated to be losing $70 million every day that production is off line.

“There are a lot of fixed costs that don’t go away by just shutting in your production,” ARC Financial vice-president of energy research Jackie Forrest  said, pointing to employee salaries, and in some cases pre-paid diluent costs and fixed pipeline costs.

She said the industry is losing about $70 million per day in forgone revenues, given that one million barrels of various grades of daily oil production are shut in because of the fires raging around Fort McMurray.

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