As seems to be happening on an almost clocklike annual basis, wildfires are again threatening oil sands production in Alberta. On May 29, Cenovus, the largest producer of oil sands bitumen via thermal steam injection (fired by natural gas) stated that it was shutting down its Christina Lake operations as a precautionary measure due to the proximity of a nearby wildfire, with a restart date yet to be determined. Based on the latest data available from the Alberta Energy Regulator (AER), output from Cenovus’s Christina Lake site averaged 239 Mb/d in March 2025 (rightmost column in chart below). This represents approximately 14% of Alberta's total bitumen production produced via thermal means during the month.
Featured Articles
- Analyst Insight
Oil Sands Gas Demand Rebounds After Short Term Dip Due to Wildfires
Gas use in the oil sands has rebounded from a late May low created by a temporary shut down of some oil sands bitumen production sites.
- Analyst Insight
Alberta’s May Crude Oil Production Sets Two-Year Low
Alberta's May crude oil output took a big tumble versus April thanks to wildfires and turnarounds.
- Blog
Get Together - Alberta Oil Sands Consolidation Fires Up With Cenovus-MEG Merger — Maybe!
Merger activity this year has been frequent in Canada’s oil and gas sector as companies strive for scale and efficiencies in an increasingly competitive landscape. The latest M&A salvo arrived in late August when MEG Energy agreed to a takeover offer from Cenovus Energy to create the largest bitumen producer in Alberta’s oil sands. With billions of barrels of reserves up for development, it is a chance for Cenovus to further consolidate and expand its existing lead in bitumen output from the oil sands. However, what might seem a straightforward corporate merger has been buffeted by a rival bid from Strathcona Resources in its attempt to create scale and ensure its own long-term competitiveness. In today’s RBN blog, we’ll examine the details of the two offers and what is at stake for all involved.
