Alberta Reduces Inactive Oil and Gas Wells by 5% in 2023, but Cleanup Costs Remain Staggering

Oil and gas companies spent over $1 billion on well cleanup last year, but experts warn the $33 billion liability estimate may be significantly underestimated.

• Alberta's inactive oil and gas wells decreased from 83,000 to 79,000 in 2023, marking a 5% reduction according to the Alberta Energy Regulator (AER).
• Oil and gas producers spent $769 million on cleanup efforts in 2023, exceeding the AER's mandated spending target by 10%.
• When combined with government programs and the Orphan Well Association, total cleanup spending surpassed $1 billion last year.
• Experts argue the AER's $33 billion liability estimate for remaining cleanup costs could be as high as $88 billion, raising concerns about the scale of the challenge.
• Critics suggest stricter regulations, including upfront reclamation cost requirements and time limits for cleanup, to better address the growing environmental liabilities.

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