Alberta Government Plan Aims to Help Oil Companies With Clean-Up Costs

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Alberta Government,Oil Well Clean-Up,Liability Management Incentive

The Alberta government is moving forward with a pilot program aimed at providing incentives for oil and gas companies to clean up old oil well sites. However, this initiative has sparked concern among taxpayers due to potential costs. Between 2000 and 2020, the number of inactive wells in Alberta grew annually by five percent, but has since decreased to 79,000 in 2023.

RELATED VIDEO : Cleaning up old oil well sites in Alberta is a legal obligation for oil and gas companies, but now the Alberta government is moving forward with a plan that would give a little more help to those companies.

The report says in 2023, the number of inactive oil and gas wells in Alberta decreased by five per cent to 79,000 from 83,000. Between 2000 and 2020, the number of inactive wells in the province grew at a rate of five per cent annually, but has been trending downwards since, in part due to a suite of new rules aimed at tackling the problem.

The report says in 2023, the number of inactive oil and gas wells in Alberta decreased by five per cent to 79,000 from 83,000. But the regulator says there is more work to do, as the total outstanding liability associated with the cost of cleaning up the remaining wells sits at $33.1 billion.RELATED VIDEO : Cleaning up old oil well sites in Alberta is a legal obligation for oil and gas companies, but now the Alberta government is moving forward with a plan that would give a little more help to those companies.

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