On July 30, 2020, the Government of Alberta announced that it
will introduce a new oil and gas Liability Management Framework
over the coming months. The framework is intended to accelerate the
responsible reclamation of oil and gas sites and ensure a cleaner
environment, all while improving Alberta's competitiveness to
attract oil and gas investment.
Addressing the liabilities associated with inactive and orphaned
wells, facilities, and pipelines continues to be a concern in
Alberta. As the Government of Alberta notes in its press release, 456,729 licences have been
issued to drill oil and gas wells in Alberta since the early 1990s.
Of those, 96,969 wells are inactive, 70,785 are abandoned, 88,851
are reclamation certified, and 36,773 are reclamation exempt. Of
the remaining wells, 162,530 are active and 821 have been drilled
but are not producing.
