^ Again, not familiar with Canadian system, but there are still folks in NJ with a total loss from Hurricane Sandy that have not received full settlement from their insurance companies. I really don’t think insurance companies care about bad press, as no one likes them anyway and it generally comes down to the premium quote for most people when it comes time to get coverage. I doubt most people have any idea what they are actually covered for anyway.
Athabasca Oil’s Hangingstone project is evacuated now. So two projects at risk (second being Long Lake). Talk today that a million barrels per day are currently offline.
Will be interesting to see what the crude supply impact is. The numbers, as of Thursday AM, according to our crude desk is that the impact is ~175-200 mb/d that is unplanned offline, given that a lot of the OSM projects were already in the middle of planned turnarounds/maintenance, which might be part of the gap between 200 and 1000.
Hearing CNRL will scale back to 50% production due to electricity supply issues today. That’s a big dog facility. My million barrel quote came from RBC yesterday. Also, Kanuck might be right that some of these outages are planned, but there isn’t any non-essiential workers up there right now so I’m guessing any planned work is going to take much longer. I have a few friends that were evacuated out from CNRL Horizon so I’m guessing work is being delayed.
Not sure if many of you can access reddit at work, but this is pretty wild:
https://www.reddit.com/r/gifs/comments/4i0r1c/its_raining_fire_in_fort_mcmurray_as_citizens_are/
^ It’s pretty remarkable that no one died (that we know of yet). Considering the city went from a normal work day to fire and brimstone apocalyptic inferno in about an hour. The videos and images are just insane.
I read that Bank of Montreal cut their quarterly GDP growth forecast from 1.5% to 0% due to the disruption in oil production.
It’s a tragedy. Anyone that follows the oil industry knows this is a major area. Fort McMurray is known for bad traffic and limited transportation infrastructure (its the quintessential oil boom town). I cant imagine how frightening it was sitting in traffic trying to evacuate the city when there was a raging fire along the roadside. There’s really just one or two roads out of the town there. Very fortunate the loss of life has been minimal.
Canada is matching donations dollar for dollar. The weather is unfortunately still not cooperating, although I think the town is not as directly in danger as it was previously.
You could probably strike a deal with the insurance company though. Construction costs haven’t come down with prices, especially in fort mac. People may be willing to forego some of the “equity” they had in their house if they no longer have a job…