Alberta's government is taking a proactive stance on addressing the challenge

Alberta's government is taking a proactive stance on addressing the challenge of mature energy assets within the province.


Today, the government published the "Mature Asset Strategy: What We Heard and Recommendations Report," which details 21 recommendations aimed at effectively managing the increasing number of oil and gas assets that are nearing or have reached the end of their productive lifespan. This strategy aligns with Alberta's objectives of fostering economic growth, attracting investment, and enhancing its reputation as a responsible energy producer.

It emphasizes the long-term management of inactive and orphaned wells, as well as other legacy infrastructure, particularly in communities impacted by the transition from conventional oil and gas to oilsands and fracking in northern Alberta. "Efforts to clean up orphan wells and implement a new mature asset strategy will complement Alberta's current initiatives to accelerate the cleanup of inactive wells and sites across the province.

Importantly, I am dedicated to ensuring that no taxpayer funds are allocated to private companies for the cleanup of their own wells." — Brian Jean, Minister of Energy and Minerals The report captures the views of a diverse array of stakeholders, including municipal governments, landowners, Indigenous communities, regulators, industry producers, and experts. The Alberta government is currently reviewing these recommendations and will release further details on which ones will be implemented in the coming months. "Alberta's energy sectors have evolved rapidly this century, often outpacing the ability of stakeholders to adapt. The significant transition from mature conventional production to non-conventional resources like oil sands and shale gas—and its impact on many Albertans—necessitated an in-depth evaluation. Responsibly managing our past is crucial for shaping our future." — David Yager, Chairman, Mature Asset Strategy Engagement "The Alberta Small Producers Group appreciates the opportunity to contribute to the development of the mature asset strategy.

We are eager to continue supporting the province's growth while maximizing resources for the benefit of all Canadians and Albertans." — Terry Schmidtke, Chairman, Alberta Small Producers Group The oil and gas industry has been integral in positioning Alberta as Canada's economic powerhouse. While the majority of companies fulfill their obligations, some struggle due to economic pressures, leading to orphaned wells and unpaid taxes or landowner surface rents. Resolving these liabilities remains a governmental priority to ensure long-term environmental and economic sustainability. Key Facts: - According to the most recent progress report from the Alberta Energy Regulator (AER), the number of inactive wells is on the decline. - As of December 2024, Alberta had 78,000 inactive wells, down from 97,000 in 2020, representing a reduction of nearly 20%. - The AER report highlights that most companies are meeting or exceeding their "mandatory minimum spend" responsibilities for managing oil and gas liabilities. - In 2023, industry funding for closure activities surpassed the $700 million target established by the AER by 10%. - The number of sites reclaimed by the Orphan Well Association (OWA) increased by 44%, from 431 the previous year to 622 in 2023-24, returning approximately 1,155 hectares of land to Albertans, roughly the size of Edson.
 
Additional Information: - [Mature Asset Strategy](https://open.alberta.ca/publications/mature-asset-strategy-what-we-heard-and-recommendations) - [Orphan Well
Association](https://www.orphanwell.ca/) - [AER Liability Management]
(https://www.aer.ca/understanding-resource-development/how-we-regulate/liability-management)