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Fort McMurray wildfire cuts production
Market confident, so far, that oil sands production will come back quickly. Several oil sands companies are shutting down their operations as the wildfire around Fort McMurray draws closer to some facilities, reduces pipeline access and wreaks havoc on workers. Oil sands production has fallen by about one million bpd (barrels per day) and could drop further. About 1.4 million bpd is produced in the area close to the fire, according to Samir Kayande, with ITG Investment Research in Calgary. Several pipelines are not operating as a precaution. Suncor Energy has shut down all of its operated oilsands facilities in the region, taking upward of 600 kbpd of production capacity offline. The company cited several reasons, including a lack of diluent, which is used to help the movement of bitumen in pipelines.