The AER publishes 2023 annual Liability Management Performance Report

More than $1 billion spent on closure work in 2023

/EIN News/ -- CALGARY, AB, Dec. 05, 2024 (GLOBE NEWSWIRE) -- December 5, 2024 – Today, the Alberta Energy Regulator (AER) published the 2023 Liability Management Performance Report.

“This year’s data indicates the industry is making notable progress on cleaning up oil and gas wells, pipelines, and facilities,” said Laurie Pushor, President and CEO of the AER. "The report also shows ongoing attention and effort will be essential to keep the count of inactive wells moving downward.”

In 2023, more than $1 billion was spent on closure work in Alberta, including licensee (industry) reported eligible spend of $769 million, closure spend funded by the Government of Alberta Site Rehabilitation Program of $174 million, and the industry-funded Orphan Well Association spend of $149 million.

The $769 million on closure work spent in 2023 by all licensees surpassed the 2023 $700-million closure quota by 10%, a $73 million increase in spending from 2022. 

Additionally, 91% of licensees complied with their closure quota, leaving 54 noncompliant licensees with an outstanding amount of about $5 million in missed closure quota, less than 1% of the total industry closure spend requirement. The 54 companies are listed in the report. 

Industry operators continue to work on the backlog of inactive infrastructure. In 2023, the inactive well count decreased by 5% from 83 000 to 79 000.

The Liability Management Report seeks to provide transparency on how the industry manages conventional oil and gas liabilities, establish robust baseline performance metrics, and provide ongoing assessments of both the industry as a whole and individual licensees.

The report provides an annual snapshot of progress over time, including background and context on liability associated with conventional oil and gas operations, industry trends on infrastructure growth, liability estimates, and closure spending and activity.  

In 2020, the Government of Alberta released a new Liability Management Framework and directed the AER to develop new programs to implement the policy. The framework includes an improved system to assess the capabilities of oil and gas operators to meet their regulatory and liability obligations across the energy development life cycle.  

About the Alberta Energy Regulator  

The AER ensures the safe, efficient, orderly, and environmentally responsible development of energy and mineral resources in Alberta through our regulatory activities. For more information visit aer.ca. 

AER Media
                    Alberta Energy Regulator
                    1-855-474-6356
                    media@aer.ca