OTTAWA — Experts say oil-production shutdowns caused by the huge Alberta wildfire pack potential for broader consequences for the entire Canadian economy.
The emergency has forced several oil companies in the area to shutter operations that, combined, produce hundreds of thousands of barrels of crude each day.
BMO senior economist Robert Kavcic says that in the past the effects of sudden shutdowns in the economically crucial industry have echoed beyond the oilpatch.
Kavcic noted how the real gross domestic product in Canada's energy sector fell 4.2 per cent in May 2011 after an Alberta wildfire roared through the community of Slave Lake.
That was a big enough to help pull overall Canadian economic growth into negative territory for one month.
Although it's still early, Kavcic says the size of production cuts this time look to be much bigger.
