Alberta makes headway in oil well cleanup, reclaiming 5% of Idle sites.
Alberta makes headway in oil well cleanup, reclaiming 5% of Idle sites. Image: CTV News Calgary
(The Post News)- A regulatory report issued on Thursday revealed that Alberta, Canada’s largest fossil fuel-producing province, has made significant progress in decommissioning and rehabilitating dormant oil wells. The number of inactive oil and gas wells in Alberta decreased by 5% in 2023 compared to the previous year.
Currently, Alberta has approximately 79,000 wells classified as inactive, down from 83,000 in 2022. These wells are no longer producing oil or gas and must be permanently plugged and restored.
As the world’s fourth-largest oil producer and sixth-largest gas producer, Canada’s western provinces are home to hundreds of thousands of active and inactive wells. Unfortunately, some of these wells have become “orphans,” meaning their owners have gone bankrupt or ceased to exist.
Laurie Pushor, CEO of the Alberta Energy Regulator (AER), stated that this year’s data shows the industry is making significant progress in cleaning up oil and gas wells, pipelines, and facilities. Pushor emphasized that continued attention and effort are essential to reducing the number of inactive wells.
The province’s energy sector has experienced rapid expansion, resulting in a 5% annual increase in inactive wells between 2000 and 2020. Environmental campaigners have warned taxpayers that they may be left with billions of dollars in well cleanup costs unless energy companies are held accountable.
In 2022, the AER introduced a mandatory closure spending quota, requiring the industry to collectively spend on closure and cleanup work. This year’s quota was C$700 million, which companies exceeded by about 10%. According to the regulator, 91% of companies holding well licenses in Alberta complied with their spending quota, leaving approximately 54 companies collectively owing C$5 million.
One notable example is Sunshine Oilsands, which was ordered to suspend operations last month by the AER due to non-compliance with environmental and public safety regulations.
About the Author
