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The questions came up: How big of an explosion can be made stacking explosive barrels, and what happens if a Fire Elemental gets too close?
Answers: Not as big as one would hope, and nothing, respectively.
Using DromEd for Thief Gold, I made a wall of explosive barrels, dropped in a fire crystal for ammo, and placed a Fire Elemental up against the barrels. The Fire Elemental had no effect on the barrels, so I placed it inside a barrel to show its ineffectiveness.
Then I shot it with a Fire Arrow.
The settings for the Fire Elemental could be tweaked to make it set off the barrels, but there was never a scenario in the original missions that would allow it.