Yahoo Finance Suncor (SU) Shuts Down Firebag Site Amid Wildfire Concerns
Suncor Energy SU, a leading Canadian integrated energy firm, has shut down the Firebag oil sands site amid wildfires in northern Alberta. The province’s minister of Forestry and Parks reported that the operations at the oil sands site were ceased only out of caution. The company further stated that only essential workers would remain at the facility and it will resume operations as soon as the situation permits.
Even though the shutdown is temporary, Suncor has cut down some of its production as a precautionary measure. The Firebag site boasts a daily production capacity of 215,000 barrels of oil per day (bpd). The facility is located approximately 100 kilometers northeast of the Fort McMurray oil sands hub.
The wildfire was reported nearly 8 kilometers away from the Firebag site. Despite its proximity, the company stated that the wildfire did not pose any risk to its other operations or the Firebag airport. Additionally, the wildfire has not disrupted the operations of the Kearl oil sands mine, located 20 kilometers toward the north of Firebag, and the Sunrise facility, situated toward the south. The Kearl oil sands mine is operated by Imperial Oil, while Sunrise is operated by Cenovus Energy.
Per the minister of Forestry and Parks, Alberta is currently battling more than 60 wildfires and the risks in the northern side have been categorized as very high to extreme. Alberta’s provincial wildfire agency has reported that the fires threatening Suncor’s facility were most likely ignited by lightning.
The wildfire season has been rather calm this year in Canada, as compared to 2023. In the prior year, the number of wildfires exceeded 6,600, burning down approximately 15 million hectares. However, the concerns persist due to drought-like conditions in western Canada. The wildfires season typically peaks around July and August.
Canada is the world’s fourth largest producer of oil, with a production capacity of 5 million barrels of crude per day. Alberta’s oil sands contribute to more than two-thirds of this production.
Zacks Rank and Key Picks
Currently, SU carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energysector areSunoco LP SUN, SM Energy SM and Hess Midstream Partners LP HESM. Sunoco presently sports a Zacks Rank #1 (Strong Buy), while SM Energy and Hess Midstream carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunoco LP is one of the largest distributors of motor fuel in the United States. The partnership distributes fuel to independent dealers, commercial customers, convenience stores as well as distributors. Its current distribution yield is greater than the composite stocks in the industry, providing unitholders with consistent returns.
SM Energy is an upstream energy firm operating in the prolific Midland Basin and the South Texas regions. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.
Hess Midstream owns, operates, develops, and acquires a wide range of midstream assets, providing services to Hess Corporation and other third-party customers. The partnership has a stable fee-based revenue model secured via long-term commercial contracts. Since Hess Midstream operates through 100% fee-based contracts, it is exposed to minimal commodity price risks.
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