Record heat sparks warnings, boosts fires in western United States

Sun, Smoke, Sherpa Fire

By Steve Gorman

LOS ANGELES (Reuters) – Wildfire warnings were posted across parts of three Western U.S. states on Sunday as a heat wave baked the region in record, triple-digit temperatures, stoking flames in California from the coastal foothills outside Santa Barbara to desert brush near the Mexican border.

Excessive heat advisories and “red flag warnings” for extreme fire conditions were in effect across southern portions of California, Nevada and Arizona, the National Weather Service reported on the eve of the first official day of summer.

In the Los Angeles suburb of Burbank, the mercury topped out at 109 degrees Fahrenheit (42.8 Celsius), shattering the prior record high for the date of 104 degrees set in 1973. In Phoenix, Arizona, the temperature climbed to 118 degrees, 3 degrees above the previous high mark for the date reached in 1968.

With rising demand for air conditioning expected to test the region’s generating capacity, the California Independent System Operator, which runs the state’s power grid, urged consumers to conserve daytime electricity on Monday.

Forecasters said record-breaking heat would persist through Tuesday, especially in the Desert Southwest, where temperatures could reach as high as 120 degrees.

“These extreme temperatures can be life-threatening,” the Weather Service said on its website.

Fire officials said the heat was a major factor in worsening a wind-driven blaze roaring through dry brush and chaparral about 50 miles east of San Diego, north of the Mexico border, forcing evacuations of dozens of homes in the desert community of Potrero.

The blaze, which erupted Sunday morning, had blackened about 1,500 acres and was still burning unchecked over steep terrain and drought-parched vegetation by evening, San Diego County Fire Captain Kendal Brotisser said.

About 200 miles to the north, excessive heat also continued to plague crews battling the so-called Sherpa Fire, burning for a fifth day in the canyons and foothills near Santa Barbara.

That blaze, which has charred nearly 7,900 acres and forced hundreds of people from their homes, was 51 percent contained as firefighters took advantage of abating “sundowner” winds that had initially propelled the flames.

A much smaller brush fire flared briefly beneath a freeway interchange near downtown Los Angeles, destroying three storage sheds, damaging two homes and snarling traffic in the vicinity as firefighters rushed to douse the blaze.

Meanwhile, in New Mexico, local authorities declared a state of emergency due to a five-day-old timber fire that has consumed some 17,615 acres (7,129 hectares) and destroyed about two dozen homes southeast of Albuquerque.

(Additional reporting by Ian Simpson in Washington; Editing by Andrew Bolton and Himani Sarkar)

Wildfires in California, New Mexico trigger hundreds of evacuations

Sherpa fire

By Alex Dobuzinskis

LOS ANGELES (Reuters) – Hundreds of people have evacuated to escape a wildfire in coastal Southern California and a larger blaze in rural New Mexico as hot weather feeds the flames, raising health concerns in other regions, officials said on Thursday.

Santa Barbara Sheriff Bill Brown told a news conference his deputies had asked occupants of 400 homes and businesses to evacuate structures in areas threatened by flames from the California fire. Campers, and horses on ranches have also been forced out, officials said.

The blaze, which ignited on Wednesday in a wilderness area northwest of Santa Barbara, has consumed chaparral and tall grass in the Los Padres National Forest, blackening some 1,200 acres (490 hectares), according to tracking website InciWeb.gov.

About 500 firefighters were trying to hold it from exploding out of control as airplane tankers and helicopters dropped water, officials said.

“There isn’t a lot of marine layer (ocean humidity) so not great conditions for firefighting,” Diane Black, a joint incident command manager, said in a phone interview.

Winds drove the so-called Sherpa Fire, named after a ranch near where it started, toward the Pacific coast, leading authorities to evacuate two state beaches and some ranch land, according to information from InciWeb.gov and the Santa Barbara County website.

The blaze also approached the 101 Freeway overnight, forcing authorities to close it until Thursday morning.

In New Mexico, the so-called Dog Head Fire which broke out on Wednesday about 6 miles (10 km) northwest of the town of Tajique has forced evacuations and grown to more than 12,000 acres (4,900 hectares).

It has burned through timber in central New Mexico, pushing heavy smoke toward cities more than 100 miles (160 km) away as flames spread through a largely unpopulated area, fire information officer Peter D’Aquanni said in a phone interview.

Torrance County Sheriff Heath White said his office was evacuating about 200 people.

D’Aquanni said that, as more than 600 firefighters tackle the blaze, winds could shift the flames to the east.

“There’s not many structures in front of that direction if it goes where we think it’s going,” he said.

The National Weather Service has issued heat advisories for Missouri and southwest Iowa, with temperatures in the mid-90s Fahrenheit (35 Celsius), climatologist Bryan Peake said in a phone interview.

(Reporting by Alex Dobuzinskis; Editing by James Dalgleish)

Alberta wildfire singes companies beyond energy sector

An aerial view of Highway 63 south of Fort McMurray, Alberta. Canada, shows smoke from the wildfires

By Euan Rocha and Allison Lampert

TORONTO/MONTREAL (Reuters) – The wildfire that has ravaged northern Alberta and cut Canadian crude output by 25 percent is set to crimp corporate earnings beyond the oil patch, especially hitting the rail and hospitality sectors.

The fire, which has caused an estimated $50 million a day in lost production for oil sands companies near the evacuated city of Fort McMurray, has also caused pain to large companies that serve the sector and smaller ones catering to thousands of industry workers.

Canadian National Railway Co  has said it ran a freight train to Fort McMurray for the first time since May 3. It typically operates three trains a week to the city.

Separately, the Bank of Canada came out with a more hawkish statement on Wednesday on how the economy will be hurt by damage from the wildfires. The central bank said the wildfire disaster will shave 1.25 percentage points off economic growth in the second quarter.

“The wildfires in Alberta continue to delay oil production restarts, weighing on petroleum product shipments tied to the region,” said Susquehanna rail analyst Bascome Majors.

The effect on Canadian National and Canadian Pacific Railway Ltd results will be limited since crude-by-rail accounts for a relatively small part of their revenues, Majors said.

Canadian National said crude oil represented just over 1 percent of car loadings in the first quarter. Canadian Pacific’s crude shipments have fallen 70 percent, 87 percent and 77 percent, respectively, over each of the last three weeks, according to company data.

With the combination of the wildfire and weak commodity prices challenging the railroads, Seaport Global Securities noted that the latest weekly data showed Canadian crude-related rail shipments fell 35 percent from last year and total Canadian rail volumes slid 18.6 percent.

Parts of the hospitality sector will also be hurt.

The Blacksand Executive Lodge owned by Horizon North Logistics Inc, a provider of camps and lodges for oil sands workers, was completely destroyed by the fire.

Temple Hotels Inc, which owns and operates 29 hotels, has nearly one-third of its properties in Fort McMurray. Analysts said near-term earnings will be hurt due to the fire, though they noted it could benefit when reconstruction begins.

Losses for property insurers like Intact Financial Corp and Aviva Plc AV. are likely to be capped, wrote Wells Fargo analyst Elyse Greenspan, who expects the largest share of the losses to fall on European reinsurers and Everest Re Group Ltd.

She noted that estimates pointed to overall insured losses topping out at close to $7 billion.

The fire has also crippled small business owners in Fort McMurray as only a trickle of its 90,000 evacuated residents will begin to return in early June.

“It’s really challenging for us right now. Even if we reopen, what sort of business will we get?” said Joycelyn Reece-Reid, co-owner J’s Fashions. “All I know is business just won’t be like it was for maybe quite a few years.”

Chad Gergley, who owns a wellness clinic and a yogawear business in the city, said 25 percent of his employees do not intend to return since they have either lost their homes or been forced to find jobs elsewhere.

“On top of a revenue hit that businesses in town are taking, we’re taking a people hit with employees scattering,” he said.

The eventual rebuilding will boost construction activity, but will take time and is unlikely to result in sustained growth, said ATB Financial Chief Economist Todd Hirsch, who believes many small businesses may never return.

“Even though there may be a positive lift to GDP, there’s absolutely nothing economically positive about this fire,” he said.

(Reporting by Euan Rocha in Toronto and Allison Lampert in Montreal; Editing by Jeffrey Benkoe)

Better weather expected to damp down Canadian wildfire

A flock of birds fly as smoke billows from the Fort McMurray wildfires in Kinosis

By Nia Williams and Eric M. Johnson

CALGARY, Alberta (Reuters) – Firefighters battling a wildfire that has threatened oil sands facilities north of Fort McMurray, Alberta, looked to cooler weather, a change in winds and the promise of rain to help them on Thursday.

A shift in wind direction from west to east is expected to push the fire back toward areas it has already burned, limiting its growth, wildfire information officer Travis Fairweather said on Thursday.

“That should hopefully result in a little less activity than we’ve seen in the last couple of days,” he said.

The fire, which hit Fort McMurray in early May, destroying entire neighborhoods, surged north on Tuesday, forcing the evacuation of 8,000 oil sand workers, destroying a work camp and prolonging a shutdown that has cut Canadian oil output by a million barrels a day.

Fairweather did not expect the fire to damage any oil sands facilities on Thursday.

The fire covered 483,084 hectares (1.2 million acres) as of Thursday morning, up some 61,000 hectares from the day before. Fairweather said cooler weather and the chance of rain on Thursday also would help contain the fire.

Some of the 90,000 evacuees who fled Fort McMurray as the massive blaze breached the city may be allowed to return as soon as June 1, officials said on Wednesday, if air quality improves and other safety conditions are met.

Some oil sands operations directly north of the city remained shuttered, although firefighters held the blaze back from Suncor Energy and Syncrude Canada facilities on Wednesday.

The fire destroyed a 665-room lodge for oil sands workers on Tuesday but officials said on Wednesday they were not aware of further industry damage.

Tuesday’s evacuations were a setback for producers, suggesting production may be suspended for longer than companies and analysts had previously anticipated.

The province’s plan to gradually allow residents back into the city offered hope but also trepidation.

“It’s exciting news but you are also scared to see what you get when you get back,” said Fort McMurray resident Ria Dickason, adding that she was concerned about smoky air.

The air quality health index, which usually stands between 1 and 10, hit 51 on Wednesday morning, before improving to 11.

“We won’t go back if it’s anything close to the levels it’s at now,” Dickason said. “My daughter has asthma so we are more alert to it.”

(Additional reporting by Allison Martell and Ethan Lou in Toronto; Editing by Bill Trott)

Hot weather, winds, complicate battle to control Alberta wildfire

An aerial view of Highway 63 south of Fort McMurray, Alberta. Canada, shows smoke from the wildfires

By Nia Williams

CALGARY, Alberta (Reuters) – Hot and dry weather and strong winds were expected to push a massive wildfire near Fort McMurray, Alberta eastward on Wednesday, threatening facilities and work camps in the prized oil sands region.

The fire, which began in early May, forced the evacuation of thousands of workers on Tuesday, prolonging a shutdown that has cut Canadian oil output by a million barrels a day. It destroyed a 665-room lodge for oil sands workers, then blazed eastward toward other camps.

Winds forecast for Wednesday were expected to push the blaze further to the east, putting oil operations in its path, officials said late on Tuesday. Heat and lack of rain also are complicating efforts to control the 355,000-hectare (877,224-acre) fire, which was also stretching toward the Saskatchewan border.

“We expect the fire to spread on the easterly side,” Alberta wildfire manager Chad Morrison said on a Tuesday call.

The latest forecast showed temperatures were expected to reach a high of 24 Celsius (75 Fahrenheit) in the Fort McMurray area on Wednesday, though there was also a 60 percent chance of rain on Thursday.

The wildfire is taking a toll on Alberta’s economy, with one study estimating that the lost oil production will cut the Western Canadian province’s gross domestic product (GDP) by more than C$70 million ($53.91 million) a day.

About 8,000 workers were evacuated from camps and facilities north of Fort McMurray on Tuesday, with both Suncor Energy Inc and Syncrude, majority owned by Suncor, removing all but bare essential staff from their major operations.

None of the oil sands have caught fire, and the industry has redoubled efforts to ensure facilities are well-protected. Officials said facilities have been cleared of vegetation and have lots of gravel on site, reducing the fire risk.

The Canadian supply disruptions have helped boost global oil prices, though Brent crude prices eased on Wednesday as the lost Canadian production was tempered by rising supplies elsewhere. [O/R]

In one encouraging sign for producers, cogeneration electric plants around Fort McMurray increased their output overnight with the restart of Suncor’s Firebag units, the operator of the province’s power grid said on Wednesday.

The roughly 90,000 residents of Fort McMurray are growing frustrated over the lack of an estimate for their return to the oil sands hub, which they were forced to flee about two weeks ago.

Officials told a town hall meeting late on Tuesday that they were narrowing down return dates which they hoped to share “very, very soon,” but added that the city remained unsafe.

($1 = 1.2984 Canadian dollars)

(With additional reporting by Julie Gordon in Vancouver, Scott DiSavino in New York and Jeffrey Hodgson and Allison Martell in Toronto; Editing by Paul Simao)

More evacuations as wildfire in Canada shifts north

Smoke and flames from the wildfires erupt behind a car on the highway near Fort McMurray

(Reuters) – Canadian energy producers were hit with fresh disruptions on Tuesday after a massive wildfire burning around the oil sands hub of Fort McMurray, Alberta, shifted north, forcing the evacuation of about 4,000 people from work camps.

Suncor Energy Inc, one of the area’s biggest operators, said early Tuesday that it started a staged and orderly shutdown of its base plant operations as a precautionary measure.

Suncor said there had been no damage to its assets and that it had enhanced fire protection around the facilities.

Suncor and Syncrude Canada late Monday confirmed they had evacuated workers from the affected area.

The sudden movement of the fire prompted the evacuation of some 4,000 people from work camps outside Fort McMurray, with all northbound traffic again cut off at the city, the Regional Municipality of Wood Buffalo said on Monday.

The entire population of Fort McMurray, about 90,000 people, was forced to flee nearly two weeks ago as the uncontrolled wildfire raged through some neighborhoods and destroyed about 15 percent of structures.

On Monday, the blaze continued to burn uncontrolled, covering 285,000 hectares (704,000 acres), officials said. By Monday evening it was moving 30 to 40 meters (98 to 131 feet) per minute and had jumped a critical firebreak north of the city to push into the oil sand camp areas.

Roughly a million barrels per day of oil sands crude production was shut down as a precaution and because of disruptions to regional pipelines. Much of that production remains offline.

Firefighters have managed to protect much of Fort McMurray but evacuated residents have not been allowed to return to their homes, partly because of hot spots around the community.

(Reporting by Jeffrey Hodgson in Toronto; Additional reporting by Nia Williams in Calgary and Julie Gordon in Vancouver; Editing by Jeffrey Benkoe)

Repair Crews assess Canada Wildfire Damage

Crews begin to work on the burned out remains of the Waterways neighbourhood of Fort McMurray

By Rod Nickel

FORT MCMURRAY, Alberta (Reuters) – Repair crews were expected to assess wildfire damage to the Canadian energy boomtown of Fort McMurray on Tuesday as the oil sands companies surrounding the ravaged city looked at bringing production back on line.

Political leaders got their first glimpse of the city on Monday since wildfire forced 88,000 residents to flee for safety. Alberta Premier Rachel Notley said they were encouraged by how much of it escaped destruction, estimating almost 90 percent of its buildings were saved.

But the tour also revealed scenes of utter devastation, with blocks of homes reduced to blackened foundations, front steps and metal barbecues.

Notley said 2,400 structures had burned within the city while almost 25,000 were saved.

The fire, expected to grow further on Tuesday, ravaged some 204,000 hectares (504,000 acres) of Alberta. But it also moved far enough away from the evacuated town to allow an official delegation to visit on Monday.

Officials warned it was not safe for residents to return, with parts still smoldering and large areas without power, water and gas. Notley said repair crews will have weeks of work ahead of them to make the city safe.

The assessment by officials came a few hours after insurance experts revised sharply downward their estimates of the cost of damage from the blaze, which began on May 1.

Cooler weather, which has helped firefighters battling the blaze, was expected to linger through Thursday, according to Environment Canada. Still, much of Alberta is tinder-box dry after a mild winter and warm spring.

Fort McMurray is the center of Canada’s oil sands region. About half of its crude output, or 1 million barrels per day, has been taken offline, according to a Reuters estimate.

Oil sands companies, which have high fixed costs, are expected to work as quickly as possible to get production back online, but face the challenge of many staff and suppliers being displaced by the evacuation.

In one encouraging sign for industry, Royal Dutch Shell Plc said on Monday it restarted production at a reduced rate at its Albian oil sands mining operation in Alberta, adding it plans to fly staff in and out.

But Imperial Oil said late on Monday it completed a controlled shutdown of its Kearl oil sands mining project, blaming the uncertainties associated with logistics.

(Writing Jeffrey Hodgson in Toronto; Editing by Ryan Woo)

Helicopters, trucks set to remove thousands fleeing Canadian wildfire

Flames rise in Industrial area south Fort McMurray Alberta Canada

By Rod Nickel and Liz Hampton

CONKLIN/LAC LA BICHE (Reuters) – Canada’s government sent trucks and helicopters on Friday to safely remove thousands of evacuees stranded north of a wildfire that ravaged nearly a quarter million acres around the Canadian oil town of Fort McMurray, Alberta.

The out-of-control wildfire has consumed entire neighborhoods in Fort McMurray, forcing 88,000 to evacuate, and threatened two oil sands sites south of the city. While the main fire have turned southeast, away from town, parts of Fort McMurray were still burning.

“Things have calmed down in the city a little bit, but guys are out as we speak, fighting fires, trying to protect your property,” said local fire chief Darby Allen in a video message to residents posted late in the evening.

“The beast is still up, it’s surrounding the city, and we’re here doing our very best for you.”

Some 25,000 evacuees were forced to flee north on Tuesday and Wednesday, as the blaze closed off their only route south. After days on roadsides and at oil sands camps, they clamored for answers on Thursday.

Thousands of evacuees will catch a glimpse of the scorched town as police escort them south towards Alberta’s major cities.

About 8,000 people will be airlifted out, officials said, but most are expected to drive south, with police escorts, once officials determine the highway is safe, likely on Friday.

“The damage to the community of Fort McMurray is extensive and the city is not safe for residents,” said Alberta Premier Rachel Notley in a press briefing late Thursday.

Notley said it would not be responsible to speculate on when residents would be allowed to return: “We do know that it will not be a matter of days,” she said.

South of Fort McMurray, CNOOC Nexen’s Long Lake oil sands facility and Athabasca Oil’s Hangingstone project were in danger, according to emergency officials. Both facilities have been evacuated.

Although the cause of the fire was not known, tinder-dry brush, low humidity, and hot, gusting winds have made it nearly impossible to control.

The blaze, which erupted last Sunday, grew more than tenfold from 18,500 acres (7,500 hectares) on Wednesday to some 210,000 acres (85,000 hectares) on Thursday, an area nearly 10 times the size of Manhattan.

(Additional reporting by Allison Martell; Editing by Jeffrey Benkoe)

New evacuations around fire-struck Fort McMurray in energy heartland

Residents of Fort McMurray assemble in Conklin, Alta. after their city of 62,000 was evacuated due to raging wildfires

By Rod Nickel

ANZAC, Alberta (Reuters) – A massive wildfire near Fort McMurray in Alberta, Canada, that has grown to five times its initial size has spread south, forcing more evacuations on Thursday after 88,000 people fled the city in the nation’s energy heartland.

The weather forecast has called for cooler temperatures and possible rain, offering hope that controlling the blaze could become easier.Map of the Fort McMurray fire – (http://tmsnrt.rs/1TtvIOD)

Late Wednesday, flames fanned south from Fort McMurray, the main city in Canada’s oil sands region. Officials issued mandatory evacuation orders for the Anzac, Gregoire Lake Estates and Fort McMurray First Nation communities, located about 50 km (31 miles) south of the battered city.

Officials on the scene were forced to evacuate a make-shift emergency operations center for the second time in less than a day.

Authorities said there had been no known casualties from the blaze itself, but fatalities were reported in at least one vehicle crash along the evacuation route.

Thousands bunked down for the night on Wednesday in arenas, hockey rinks and oil work camps that were often short of fuel and food.

Fire also threatened the airport, and web cam images showed black smoke engulfing the area late Wednesday evening. Officials confirmed that a hotel north of the main terminal had caught fire, but as the sun rose on Thursday new images of the airport showed no obvious damage.

Major oil sands facilities were not in the path of the flames, but companies’ efforts to help employees and evacuees and protect pipelines affected production and helped boost the price of crude.

Austrian consultancy JBC Energy estimated that some 500,000 barrels per day of capacity was offline. [O/R]

Hot, dry, windy weather has made the massive wildfire all but impossible to control. The entire city of Fort McMurray was ordered to evacuate on Tuesday, and some 1,600 structures have been destroyed, Alberta Premier Rachel Notley said on Wednesday.

Temperatures hit 31 degrees Celsius (88°F) on Wednesday. But on Thursday morning, Environment Canada forecast a high of 19 degrees Celsius (66°F) with a 30 percent chance of rain. The average high in the area is 15 degrees Celsius.

A government forecast map of potential fire intensity still showed some areas around Fort McMurray at class 6, the highest level.

In the early hours of the evacuation on Tuesday, fire blocked the only route south to major cities, so thousands of evacuees drove north, where there are oil sands facilities but few major settlements, and no route out except back through the burning city.

Late Wednesday, the regional government fielded questions on Twitter from frightened evacuees north of the city, asking when they would be able to drive south, and whether areas north of the city were safe.

“We haven’t forgotten about you and you’re safe,” said the government on Twitter.

(Reporting by Ethan Lou and Allison Martell in Toronto; Editing by Lisa Von Ahn and Jeffrey Benkoe)

Wildfire destroys homes in Canadian City – delays hit evacuation

Flames rise in Industrial area south Fort McMurray Alberta Canada

(Reuters) – An out-of-control wildfire destroyed much of one neighborhood in the remote Canadian city of Fort McMurray and badly damaged other areas, the local government said on Wednesday, hours after it ordered all 80,000 residents to leave in the biggest evacuation in the area’s history.

Firefighters in the northeastern Alberta city at the heart of Canada’s oil sands were bracing for another tough day. Hot, dry weather has made it difficult to being the fire under control. A forecast for potential fire intensity showed much of the area around at class 6, the highest possible level.

Some 44,000 people had fled the city by late on Tuesday, but evacuations were delayed by gasoline shortages, local officials said. No injuries or deaths were reported.

In a bulletin posted on Twitter in the early morning, the regional government said 80 percent of Beacon Hill, a residential area at the south end of town, had been lost. Two other neighborhoods, Abasand and Waterways, were listed as “serious loss.”

By early Wednesday morning Shell had closed one oil sands mine and was in the process of closing another. Chief Financial Officer Simon Henry said the company’s priority was safety, and to support the community. Henry said upgraders, which process oil sands to produce crude, would operate for a few more days.

Alberta Health Services said in a statement that all patients had been successfully evacuated from Fort McMurray’s hospital.

The fire broke out southwest of the city on Sunday, shifting aggressively with the wind to breach city limits on Tuesday.

(Reporting by Allison Martell; Editing by Frances Kerry)