Map - Fort McMurray (Fort McMurray)

Fort McMurray is an urban service area in the Regional Municipality of Wood Buffalo in Alberta, Canada. It is located in northeast Alberta, in the middle of the Athabasca oil sands, surrounded by boreal forest. It has played a significant role in the development of the national petroleum industry. The 2016 Fort McMurray wildfire led to the evacuation of its residents and caused widespread damage.

Formerly a city, Fort McMurray became an urban service area when it amalgamated with Improvement District No. 143 on April 1, 1995, to create the Municipality of Wood Buffalo (renamed the RM of Wood Buffalo on August 14, 1996). Despite its current official designation of urban service area, many locals, politicians and the media still refer to Fort McMurray as a city. Fort McMurray was known simply as McMurray between 1947 and 1962.

Before the arrival of Europeans in the late 18th century, the Cree were the dominant First Nations people in the Fort McMurray area. The Athabasca oil sands were known to the locals and the surface deposits were used to waterproof their canoes. During the fur trade, the location of Fort McMurray, west of Methye Portage, was an important junction on the fur trade route from eastern Canada to the Athabasca Country. In 1778, the first European explorer, Peter Pond, came to the region in search of furs, as the European demand for this commodity at the time was strong. Pond explored the region farther south along the Athabasca River and the Clearwater River, but chose to set up a trading post much farther north by the Athabasca River near Lake Athabasca. However, his post closed in 1788 in favour of Fort Chipewyan, now the oldest continuous settlement in Alberta. In 1790, the explorer Alexander MacKenzie made the first recorded description of the oil sands. By that time, trading between the explorers and the Cree was already occurring at the confluence of the Clearwater and Athabasca rivers. The Hudson's Bay Company and the North West Company were in fierce competition in this region. Fort McMurray was established there as a Hudson's Bay Company post by 1870, named for the Chief Factor William McMurray. It continued to operate as a transportation stopover in the decades afterwards. The Alberta and Great Waterways Railway arrived in 1915 complementing existing steamboat service.

The community has played a significant role in the history of the petroleum industry in Canada. Oil exploration is known to have occurred in the early 20th century, but Fort McMurray's population remained small, no more than a few hundred people. By 1921, there was serious interest in developing a refining plant to separate the oil from the sands. Alcan Oil Company was the first outfit to begin bulk tests at Fort McMurray. The nearby community of Waterways was established to provide a southern terminus for waterborne transportation when the Alberta and Great Waterways Railway reached there in 1921.

Abasands Oil was the first company to successfully extract oil from the oil sands through hot water extraction by the 1930s, but production was very low. Fort McMurray's processing output gradually grew to over 1,100 barrels/day by World War II, and Fort McMurray was set up by the US and Canadian forces as staging ground for the Canol Project.

Fort McMurray and Waterways amalgamated as the village of McMurray (the "Fort" was dropped until 1962, when it was restored to reflect its heritage) by 1947, and became a town a year later. Fort McMurray was granted the status of new town so it could get more provincial funding. By 1966, the town's population was over 2,000.

In 1967, the Great Canadian Oil Sands (now Suncor) plant opened and Fort McMurray's growth soon took off. More oil sands plants were opened, especially after the 1973 oil crisis and the 1979 energy crisis, when serious political tensions and conflicts in the Middle East triggered oil price spikes. The population of the town reached 6,847 by 1971 and climbed to 31,000 by 1981, a year after its incorporation as a city.

The population peaked at almost 37,000 in 1985, then declined to under 34,000 by 1989. Low oil prices since the oil price collapse in 1986 slowed the oil sands production greatly, as oil extraction from the oil sands is a very expensive process and lower world prices made this uneconomical.

On April 1, 1995, the City of Fort McMurray and Improvement District No. 143 were amalgamated to form the Municipality of Wood Buffalo. The new municipality was subsequently renamed the Regional Municipality (RM) of Wood Buffalo on August 14, 1996. As a result, Fort McMurray was no longer officially designated a city. Instead, it was designated an urban service area within a specialized municipality. The amalgamation resulted in the entire RM of Wood Buffalo being under a single government. Its municipal office is located in Fort McMurray, which accounts for the great majority of the RM's population; all but 5,000 of the RM's residents live in the Fort McMurray urban service area.

The city continued to grow for a few years even after the oil bust caused by the 2003 collapse in world oil prices. Oil price increases since 2003 made oil extraction profitable again for around a decade, until another slump in oil prices which began in December 2014 and deepened in 2015 resulted in layoffs and postponement of projects.