Page 5 - NorthAmOil Week 17 2021

NorthAmOil COMMENTARY NorthAmOil

out over a longer timeframe than normal in an put it off again without falling short of regula-
effort to control the spread of the virus. How- tory and safety requirements.
ever, the news service noted that there were still
221 active cases of COVID-19 linked to Syn- What next?
crude’s operations as of April 28. This includes While Canada battles to bring its current wave
some asymptomatic cases that were detected via of COVID-19 under control, the world remains
rapid testing. on edge over the course of the pandemic. A cri-
“We have seen an increase and that reflects sis is rapidly escalating in India even as certain
the increase in the wider community in Fort Western countries relax somewhat amid mass
McMurray,” Gibson said. vaccination campaigns.
Canadian Natural Resources Ltd (CNRL) has Indeed, Canada has been slower that the US to
also implemented rapid testing during mainte- roll out vaccinations, but is now trying to ramp
nance on its Horizon upgrader. Alberta Health them up in response to the latest outbreaks. This
had been notified of 294 active cases related to is playing out amid worries that new waves of
the facility as of April 28. CNRL was reported infections could lead to more mutations of the The Suncor,
to have 22 cases – a far smaller number – across virus and end up undermining the current vac-
two other sites. The maintenance work at cination campaigns. Syncrude and
Horizon this month was anticipated to reduce The pressure will therefore be mounting on CNRL outbreaks
CNRL’s production by 250,000 bpd. both Alberta and Canada more broadly to step
The Suncor, Syncrude and CNRL outbreaks up its efforts to fight the virus. The presence of were estimated
were estimated to account for the majority of oil rapid testing in the oil sands signals a step in the
sands-related cases this week, though a small right direction, but there is still a long way to go. to account for
number of cases were reported at other facili- This poses a new challenge for the embattled
ties, including those operated by Imperial Oil. oil sands region as it attempts to move forward the majority of
The situation marks a repeat of the first wave from several years of depressed crude prices, oil sands-related
of COVID-19 in Canada, when staff were told while also trying to figure out its place in an
to work from home if they were able to do so increasingly environmentally conscious world. cases.
and distancing measures were implemented Earnings season is now underway, and oil
at production sites in an effort to contain the sands producers are preparing to report their
virus. However, the current wave of outbreaks results from the first quarter of 2021. While
is worse, and new – potentially more dangerous these results are anticipated to show some recov-
– strains of COVID-19 are complicating the ery compared with the worst of last year’s indus-
situation. try downturn, the latest developments illustrate
There is also added pressure this time around that the pandemic continues to affect the oil
because while some maintenance work was sands. Indeed, more short-term setbacks for
scaled back last year, oil sands producers cannot the region cannot be ruled out at this point.™

Week 17 29•April•2021 www. NEWSBASE .com P5