Alberta oil and gas producer cleanup cost estimates set too low, says coalition

Canadian Natural Resources Ltd. facing the largest bill at $11.9 billion to clean up 73,000 wells

The Alberta Liabilities Disclosure Project says the province’s largest oil and gas companies are underestimating how much it will cost to clean up thousands of oil and gas wells drilled over past decades.

The coalition of landowners, environmentalists and others is unveiling a list of companies and its estimate of how much it would cost each to remediate its properties if it had to be done today.

It says those costs are much higher than the companies estimate because they are assuming they will have decades of cleanup time.

The coalition says Calgary-based Canadian Natural Resources Ltd. is facing the largest bill at $11.9 billion to clean up 73,000 oil, gas and bitumen wells in Alberta.

Other companies on its top 10 list include Husky Energy Inc. (second highest at $2.17 billion), IPC Alberta Ltd., Imperial Oil Ltd., Torxen Energy Ltd., Obsidian Energy Ltd., Cenovus Energy Ltd., Canlin Energy Corp., Paramount Resources Ltd. and Taqa North Ltd.

Husky spokesman Mel Duvall says the company used accepted industry practices to estimate its worldwide abandonment liabilities as of the end of 2018 at $2.4 billion, with the majority of those costs related to properties in Alberta and Saskatchewan.

In April, the coalition estimated the total cost to clean up all of Alberta’s oil and gas wells was $40 billion to $70 billion, versus the Alberta Energy Regulator’s official estimate of $58.65 billion to clean up wells plus all pipelines and other energy infrastructure.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Comments are closed

Just Posted

Ponoka RCMP lay charges following home invasion

On July 2, the Ponoka RCMP located and took one male into… Continue reading

57 new COVID-19 cases confirmed in Alberta on Friday

Central zone remains at three active cases

PHOTO: Stampede Cattle Raffle winner

Rimbey couple take home cash instead of cattle

Man arrested in Maskwacis for second degree murder

42-year-old Arthur Trinity Brown was located and arrested on June 30

Red Deer remains at two active COVID-19 cases

Alberta confirms 94 new cases over past two days

PODCAST: Black Lives Matter in central Alberta Part 2

More insight into the Black Lives Matter movement of central Alberta

Water supply update from ECN Chief Craig Makinaw

Ermineskin Cree Nation newsletter update

‘You have to show up:’ NDP MP questions virtual attendance of Alberta Tories

NDP MP McPherson says she’s disappointed Tory MPs haven’t been participating in virtual meetings

Flood warning, mandatory evacuation for people in remote Alberta hamlet

A flood warning has been issued for the rain-swollen Smoky River near the Hamlet of Watino

Stop enforcing sex work laws during COVID-19, Amnesty, sex worker advocates say

‘We need to make sure the existing laws on the books aren’t enforced’

Protesters return to St. Louis area where couple drew guns

Protesters return to St. Louis area where couple drew guns

Heavy rain floods southern Japan, leaving over dozen missing

Heavy rain floods southern Japan, leaving over dozen missing

At Rushmore, Trump says protesters seek to ‘defame’ heroes

At Rushmore, Trump says protesters seek to ‘defame’ heroes

Most Read