Today, the government released the Mature Asset Strategy: What We Heard and Recommendations Report, which outlines 21 recommendations to help manage the growing number of oil and gas assets nearing or at the end of their productive life.
The strategy supports Alberta’s goal of maintaining economic growth, attracting investment and enhancing its reputation as a responsible energy producer. It focuses on the long-term management of inactive wells, orphan wells and other legacy infrastructure, particularly in communities affected by the shift from conventional oil and gas to oilsands and fracking in northern Alberta.
“Supporting the work of cleaning up orphan wells and implementing a new mature asset strategy will complement the efforts that Alberta is already taking to help accelerate the clean up of inactive wells and sites across Alberta. That said, I am committed to ensuring that no taxpayer dollars go to private companies to clean up their wells.”
The report reflects some of the perspectives of a diverse range of stakeholders, including municipal governments, landowners, Indigenous communities, regulators, producers and industry experts. Alberta’s government is reviewing the recommendations and will provide more information on which recommendations it intends to implement and how, in the coming months.
“Alberta’s energy industries have changed faster this century than the ability of all stakeholders to keep pace and adapt. The major shift from mature conventional production to non-conventional resources like oil sands and shale gas – and how it has affected many Albertans – required a thorough investigation. Responsible management of where we’ve been is an essential foundation for where we’re going.”
“The Alberta Small Producers Group is appreciative of the opportunity to participate in the development of the mature asset strategy. As a group, we are very excited to continue to help the province grow while maximizing the resources for the benefit of Canadians and Albertans.”
The oil and gas sector has helped establish Alberta as the economic engine of Canada. While most companies meet their obligations, some fail due to economic challenges, leaving orphan wells and unpaid taxes or landowner surface rents. Addressing these liabilities is a government priority to ensure long-term environmental and economic sustainability.
Quick facts
- The Alberta Energy Regulator’s (AER) most recent progress report shows that the number of inactive wells is decreasing.
- As of December 2024, there were 78,000 inactive wells in Alberta compared to 97,000 in 2020 when the new liability management framework was introduced – a reduction of almost 20 per cent.
- The AER report also shows that most companies are meeting or exceeding their “mandatory minimum spend” responsibility to manage oil and gas liabilities.
- In 2023, total industry-funded spending on closure activities exceeded the $700-million requirement set by the AER by 10 per cent.
- The number of sites the OWA fully closed (reclaimed) increased 44 per cent to 622 in 2023-24, compared with 431 the year before.
- This closure number represents 1,155 hectares of land returned to Albertans, about the size of Edson.
Related information
Related news
- Supporting Liability Management on Indigenous Land (March 11, 2024)
- Progress on cleaning up well liabilities: Joint statement (Jan. 17, 2024)