Province estimates wildfire put $1-billion dent in 2016 oilsands spending plans
CALGARY — Alberta wildfires that swept through Fort McMurray in May have resulted in the loss of $1 billion in planned capital spending in the oilsands for 2016, according to Alberta’s chief energy economist.
Matt Foss said Wednesday that he believes those plans are deferred, not cancelled. But he doesn’t know when or if companies will resume their spending given benchmark oil prices that remain below break-even levels.
Foss said the interruptions have dropped expected oilsands spending in the current year to $18.5 billion from $19.5 billion estimated in the province’s spring budget.
“The majority of them were expansions to existing projects,” he told reporters on the sidelines of a heavy oil conference in Calgary.