The Alberta Energy Regulator (AER) says the oil and gas sector is making progress in cleaning up abandoned wells, pipelines, and other energy facilities in the province.

This is the conclusion reached by the energy regulator in Canada's richest oil-producing province in its first report on this topic.

The report states that license holders in this sector spent more than $696 million in 2022 to abandon facilities, exceeding the regulator's requirement of $422 million by 65%.

According to the report, 90% of permit holders complied with their 2022 abandonment spending requirements, while the remaining 51 did not, and still owed $4.2 million for cleaning up abandoned facilities.

Overall, more than $1.2 billion was spent on facility abandonment in the oil and gas sector in 2022. This amount includes eligible expenses reported by license holders and abandonment expenditures funded by the Site Rehabilitation Program (SRP) of the Alberta government and the Orphan Well Association (OWA).

The energy regulator adds in its report that in 2021 and 2022, approximately 4,400 wells were rehabilitated and operations suspended in about 8,400 wells, while the number of inactive wells decreased by about 8,000. In 2022, the number of inactive wells dropped from 91,000 to 83,000, approximately an 8.8% decrease.

In a press release, the CEO of the Energy Regulator, Laurie Pushor, said the report's findings are "a clear indication that the industry is improving in cleaning up wells, pipelines, and oil and gas facilities."

Pushor explained, "Although this report shows significant improvement (...), continued efforts are needed to ensure a sustainable downward trend in reducing the number of inactive wells in the future."

Also in a press release, Alberta's Minister of Energy and Minerals, Brian Jean, said the Energy Regulator’s report shows that Alberta’s promise to take action on cleaning up oil and gas sites "is making a big difference."

Jean added that the oil and gas industry "is doing its part" as well.

The Minister of Environment and Protected Areas in the Alberta government, Rebecca Schulz, also expressed satisfaction with the report's results.
She added, "We will maintain this momentum. In the coming weeks, two new pilot projects will begin testing ways to make the current reclamation certification process faster, clearer, and more efficient."