Alberta
Premier Smith issues statement on rehabilitating orphan wells

Rehabilitating problematic oil and gas sites: Statement from Premier Smith
Premier Danielle Smith issued the following statement in response to inaccurate claims about the government’s ongoing efforts to rehabilitate Alberta’s oldest and most problematic oil and gas development sites, many of which have flare pits, sumps and other environmental hazards that must be cleaned up promptly:
“Of the approximately 83,000 inactive wells in Alberta, approximately 20,000 were drilled before 1980 and have been inactive for more than 20 years. The number and potential environmental problems posed by these older well sites worsen with time. For example, the number of orphaned wells surged from approximately 705 in 2015 to 5,279 in March 2019, a staggering increase of approximately 648 per cent during that time frame. This failure has led to an environmental hazard for which they provide no realistic solutions to address.
“In response to that failure, the government has introduced regulations mandating oil and gas companies spend a prescribed minimum amount on well site closure and reclamation work. The minimum amount to be spent by industry on this ongoing cleanup work has grown to about $740 million this year and will increase by nine per cent annually in the coming years. This action will fix the orphan well backlog that previous governments failed to address and continue to ignore today.
“In addition, Minister of Energy Peter Guthrie is consulting with landowners, Indigenous groups and industry to design a rehabilitation pilot program to expeditiously clean up these pre-1980 inactive well sites. This consultation process will take several months to complete, after which the cabinet and government caucus will consider the feedback provided and make a final decision on whether and how to proceed with the program.
“The pilot program under consideration would potentially provide a royalty credit on new oil and gas development for energy companies willing to also invest in cleaning up these problematic well sites. The amount spent on cleaning up these sites would have to be over and above the amount these same companies are legally required to spend on regular well site rehabilitation.
“While final decisions have not been made, the total amount of royalty credits proposed to be used for the pilot program is likely to be up to $100 million over three years – after which time, the government would assess the effectiveness of the program and consult again before deciding how best to proceed. It is hoped the pilot program will greatly accelerate the cleanup of the most unpredictable and challenging oil and gas sites in Alberta.
“Bluntly put, these problematic well sites must be promptly and properly cleaned up. The government is designing a pilot for a program that is good for the environment, respects landowners’ rights and the rights of Indigenous groups, and incentivizes industry to simultaneously invest more in both the cleanup of these well sites and new resource development.
“This is the first government to try to find solutions to this problem and we look forward to the results of the consultations.”
Alberta
‘Existing oil sands projects deliver some of the lowest-breakeven oil in North America’

From the Canadian Energy Centre
By Will Gibson
Alberta oil sands projects poised to grow on lower costs, strong reserves
As geopolitical uncertainty ripples through global energy markets, a new report says Alberta’s oil sands sector is positioned to grow thanks to its lower costs.
Enverus Intelligence Research’s annual Oil Sands Play Fundamentals forecasts producers will boost output by 400,000 barrels per day (bbls/d) by the end of this decade through expansions of current operations.
“Existing oil sands projects deliver some of the lowest-breakeven oil in North America at WTI prices lower than $50 U.S. dollars,” said Trevor Rix, a director with the Calgary-based research firm, a subsidiary of Enverus which is headquartered in Texas with operations in Europe and Asia.
Alberta’s oil sands currently produce about 3.4 million bbls/d. Individual companies have disclosed combined proven reserves of about 30 billion barrels, or more than 20 years of current production.
A recent sector-wide reserves analysis by McDaniel & Associates found the oil sands holds about 167 billion barrels of reserves, compared to about 20 billion barrels in Texas.
While trade tensions and sustained oil price declines may marginally slow oil sands growth in the short term, most projects have already had significant capital invested and can withstand some volatility.
“While it takes a large amount of out-of-pocket capital to start an oil sands operation, they are very cost effective after that initial investment,” said veteran S&P Global analyst Kevin Birn.
“Optimization,” where companies tweak existing operations for more efficient output, has dominated oil sands growth for the past eight years, he said. These efforts have also resulted in lower cost structures.
“That’s largely shielded the oil sands from some of the inflationary costs we’ve seen in other upstream production,” Birn said.
Added pipeline capacity through expansion of the Trans Mountain system and Enbridge’s Mainline have added an incentive to expand production, Rix said.
The increased production will also spur growth in regions of western Canada, including the Montney and Duvernay, which Enverus analysts previously highlighted as increasingly crucial to meet rising worldwide energy demand.
“Increased oil sands production will see demand increase for condensate, which is used as diluent to ship bitumen by pipeline, which has positive implications for growth in drilling in liquids-rich regions such as the Montney and Duvernay,” Rix said.
Alberta
It’s On! Alberta Challenging Liberals Unconstitutional and Destructive Net-Zero Legislation

“If Ottawa had it’s way Albertans would be left to freeze in the dark”
The ineffective federal net-zero electricity regulations will not reduce emissions or benefit Albertans but will increase costs and lead to supply shortages.
The risk of power outages during a hot summer or the depths of harsh winter cold snaps, are not unrealistic outcomes if these regulations are implemented. According to the Alberta Electric System Operator’s analysis, the regulations in question would make Alberta’s electricity system more than 100 times less reliable than the province’s supply adequacy standard. Albertans expect their electricity to remain affordable and reliable, but implementation of these regulations could increase costs by a staggering 35 per cent.
Canada’s constitution is clear. Provinces have exclusive jurisdiction over the development, conservation and management of sites and facilities in the province for the generation and production of electrical energy. That is why Alberta’s government is referring the constitutionality of the federal government’s recent net-zero electricity regulations to the Court of Appeal of Alberta.
“The federal government refused to work collaboratively or listen to Canadians while developing these regulations. The results are ineffective, unachievable and irresponsible, and place Albertans’ livelihoods – and more importantly, lives – at significant risk. Our government will not accept unconstitutional net-zero regulations that leave Albertans vulnerable to blackouts in the middle of summer and winter when they need electricity the most.”
“The introduction of the Clean Electricity Regulations in Alberta by the federal government is another example of dangerous federal overreach. These regulations will create unpredictable power outages in the months when Albertans need reliable energy the most. They will also cause power prices to soar in Alberta, which will hit our vulnerable the hardest.”
Finalized in December 2024, the federal electricity regulations impose strict carbon limits on fossil fuel power, in an attempt to force a net-zero grid, an unachievable target given current technology and infrastructure. The reliance on unproven technologies makes it almost impossible to operate natural gas plants without costly upgrades, threatening investment, grid reliability, and Alberta’s energy security.
“Ottawa’s electricity regulations will leave Albertans in the dark. They aren’t about reducing emissions – they are unconstitutional, ideological activist policies based on standards that can’t be met and technology that doesn’t exist. It will drive away investment and punish businesses, provinces and families for using natural gas for reliable, dispatchable power. We will not put families at risk from safety and affordability impacts – rationing power during the coldest days of the year – and we will continue to stand up for Albertans.”
“Albertans depend on electricity to provide for their families, power their businesses and pursue their dreams. The federal government’s Clean Electricity Regulations threaten both the affordability and reliability of our power grid, and we will not stand by as these regulations put the well-being of Albertans at risk.”
Related information
- Conference Board of Canada socio-economic Impacts of Canada’s 2030 Emissions Reduction Plan – (April 2025)
- Alberta Electric System Operator’s position on Canadian Energy Regulations
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