The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksRDSA.L Share News (RDSA)

  • There is currently no data for RDSA

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Canadian oil workers prepare for air commutes after wildfire

Thu, 12th May 2016 15:32

By Liz Hampton and Devika Krishna Kumar

EDMONTON, Alberta/NEW YORK, May 12 (Reuters) - Fort McMurrayresidents Tony Bussey and Barritt Wilson are among the fortunateof those who live in the Alberta town ravaged by wildfire - bothof their homes are fine.

However, they and a number of others are going to see theircommutes change, joining an already large group of people whoare flown in and out of the region to work on oil installations.

Last week, fire raged unchecked through the Canadian city ofFort McMurray, leading to a full evacuation, with many losingtheir homes and having to rebuild from scratch.

But Fort McMurray has long been an area that saw oilcompanies using fly-in-fly-out (FIFO), which lets companies getemployees to remote work sites, where they stay in camps,usually for a couple of weeks.

That will help some companies restart operations relativelyquickly after the devastating fire that has scorched roughly229,000 hectares (566,000 acres).

Others, like Suncor Energy, will be moving workersin and out of the region through temporary workforcearrangements from Calgary and Edmonton to help restartoperations.

The wildfire knocked out nearly half, or 1.07 millionbarrels per day (bpd) of Alberta's oil sands capacity and led tothe evacuation of about 88,000 residents, many employed by theenergy sector. Production is slowly trickling back in.

Bussey and Wilson, both full-time employees of Suncor, weretaking things in stride.

"I think it will be interesting (to) fly in and fly out,staying in the camp for the time being," said Bussey, whoanticipates living in an Edmonton hotel for several months.

With operations disrupted by the fire, the company is alsosupporting displaced residents who work at their facilities withadvanced compensation.

"Oil companies are releasing retention, which is like abonus, to us early just to help us through,' said Wilson.

Several major producers that pepper the oil sands, includingConocoPhillips Canada, Canadian Natural Resources, and others, may be able to resume operations fasterthan many would have thought, though there are logisticalchallenges.

For others it may take a bit longer, though companies areadjusting. Suncor, Canada's largest oil producer, does someFIFO, including at its Firebag facility, but tended in the pastto have employees live in the community they work in.

Suncor spokeswoman Sneh Seetal said the company will uselodges and camps for temporary housing, and employees willreturn when it is safe to bring people to Fort McMurray.

ConocoPhillips Canada, has about 23 percent of its Canadianworkforce listed as FIFO workers. Just 26 employees have FortMcMurray residences, or about 1 percent of Canadian employees.

Still, "the logistics to get everyone back on site will be achallenge and that is being worked in tandem with the operationsplan," ConocoPhillips spokesman Rob Evans said in an email.

Having a larger percentage of FIFO workers allows companiesto use existing camp sites and other resources to steerthemselves to recovery in the fire's aftermath.

About 78 percent of workers at the Horizon site owned byCanadian Natural Resources Ltd, Canada's largest independentpetroleum producer, are fly-in, fly-out, company spokeswomanJulie Woo said.

Companies that have more limited FIFO programs may insteadbe utilizing beds at workcamps. Suncor CEO Steve Williams saidat a press conference Tuesday that the industry has determinedthere are enough beds to meet everyone's needs.

Shell Canada spokeswoman Tara Lemay said that priorto the fire, the majority of Shell's staff lived in the FortMcMurray area, but the company does have a fly-in program, whichit introduced in 2014. The company will be flying staff in andout to help resume operations. (http://bit.ly/1rXoz2H)

(Reporting by Devika Krishna Kumar in New York and Liz Hamptonin Edmonton; Additional reporting by Allison Martell in Toronto;Editing by David Gaffen and James Dalgleish)

More News
26 Nov 2021 09:02

LONDON MARKET OPEN: Stocks plunged into red as new Covid variant grips

LONDON MARKET OPEN: Stocks plunged into red as new Covid variant grips

Read more
25 Nov 2021 07:44

UPDATE 2-Oil trader Vitol snaps up UK's Vivo Energy in $2.3 bln deal

* Vitol to buy Vivo for $1.85 per share* Vivo shares jump 21%* Top investor Vitol to buyout Helios too (Adds shares, context, background)By Yadarisa ShabongNov 25 (Reuters) - Commodities trader Vitol will buy Britain's Vivo Energy in a deal valued ...

Read more
24 Nov 2021 16:58

LONDON MARKET CLOSE: FTSE 100 continues outperforming on oil strength

LONDON MARKET CLOSE: FTSE 100 continues outperforming on oil strength

Read more
24 Nov 2021 14:48

UPDATE 1-Dogger Bank in long-term wind power deal with Danske Commodities, Shell and Centrica

(Updates with other companies signing contracts)COPENHAGEN/LONDON, Nov 24 (Reuters) - Britain's Dogger Bank, which is expected to become the world's largest wind farm, has secured long-term deals with Danish energy trading company Danske Commoditi...

Read more
24 Nov 2021 12:37

Shell ponder biofuels plant to meet rising Asian aviation demand

By Florence TanSINGAPORE, Nov 24 (Reuters) - Global major Royal Dutch Shell may build a biofuels plant in Singapore to meet the region's rising demand for sustainable aviation fuels (SAF), the head of its downstream business said on Wednesday.The ...

Read more
24 Nov 2021 11:05

Shell lifts force majeure on Bonny Light crude loadings

LONDON, Nov 24 (Reuters) - The Nigerian subsidiary of Royal Dutch Shell, SPDC, lifted force majeure on Bonny Light crude oil loadings on Monday, a spokesperson said on Wednesday.Shell had declared force majeure on loadings at the end of October af...

Read more
24 Nov 2021 10:44

LONDON BROKER RATINGS: Barclays ups Hochschild Mining after price fall

LONDON BROKER RATINGS: Barclays ups Hochschild Mining after price fall

Read more
24 Nov 2021 09:13

LONDON MARKET OPEN: US President Biden unable to stop rising oil price

LONDON MARKET OPEN: US President Biden unable to stop rising oil price

Read more
23 Nov 2021 17:01

LONDON MARKET CLOSE: FTSE 100 avoids Europe malaise as oil prices jump

LONDON MARKET CLOSE: FTSE 100 avoids Europe malaise as oil prices jump

Read more
23 Nov 2021 10:50

Shell launches shareholder talks to win backing for HQ move, sources say

* Shell sets up dozens of meetings with investors* Proxy advisory Glass Lewis recommends support* Move will see Shell HQ and tax base shifting to UKBy Ron BoussoLONDON, Nov 23 (Reuters) - Royal Dutch Shell has launched talks with investors to secure...

Read more
23 Nov 2021 10:30

UPDATE 2-Shell halves Singapore refining capacity, to change chemical feedstock

* Pulau Bukom refinery capacity cut by half* Shell tests pyrolysis oil, bionaphtha feedstock* Company considers carbon capture, biofuels (Adds details)By Florence TanSINGAPORE, Nov 23 (Reuters) - Royal Dutch Shell has halved https://www.reuters.com...

Read more
23 Nov 2021 10:27

LONDON BROKER RATINGS: Hochschild Mining hit with three downgrades

LONDON BROKER RATINGS: Hochschild Mining hit with three downgrades

Read more
23 Nov 2021 09:34

UPDATE 2-Commodity-linked shares lift FTSE 100, AO World plummets on shortages warning

(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window)* European stocks hit by renewed fears around COVID-19* River and Mercantile Group rises on two takeover approaches* FTSE 100 up 0.3%, FTSE ...

Read more
23 Nov 2021 09:30

Kremlin calls new U.S. sanctions linked to Nord Stream 2 illegal

MOSCOW, Nov 23 (Reuters) - The Kremlin on Tuesday said new sanctions imposed by the United States in connection with the Nord Stream 2 gas pipeline were illegal and wrong, especially at a time when Moscow and Washington are attempting to rebuild ...

Read more
23 Nov 2021 09:15

CORRECTED-UPDATE 1-Shell halves Singapore refining capacity, to change chemical feedstock

(Corrects to remove reference that suggests pyrolysis oil is not an oil-based hydrocarbon in paragraph 7)* Pulau Bukom refinery capacity cut by half* Shell tests pyrolysis oil, bionaphtha feedstock* Company considers carbon capture, biofuelsBy Flore...

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.