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Alberta

For second year in a row, Alberta oil and gas companies spend more than required on cleanup

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From the Canadian Energy Center

By Grady Semmens

$923 million spent cleaning up inactive wells, sites and pipelines in 2023

As a business owner, Ryan Smith values few things more than predictability when it comes to the oil and gas market and the demand for his company’s services.

That’s why knowing that next year in Alberta, the regulator requires at least $750 million worth of work cleaning up inactive oil and gas wells and other legacy energy infrastructure is tremendously helpful for the CEO of Calgary-based 360 Engineering & Environmental Consulting.

“Having a minimum spend in place for the province makes the market more predictable and consistent, which in turn helps our clients and our business plan for the future, which is a good thing,” says Smith, whose company has completed more than 5,000 site closure activities in Canada and internationally since 2015.

“Site closure has really emerged as a growth market over the last decade, especially in Western Canada where the regulatory systems for oil and gas are more advanced than anywhere else we are exposed to. It is an integral part of the energy lifecycle, and if it is done well it adds a lot of value to the industry.”

The Alberta Energy Regulator (AER) introduced an industry-wide minimum “closure” spending requirement in 2022, part of Alberta’s Inventory Reduction Program to accelerate the remediation of inactive oil and gas wells, facilities and pipelines across the province.

The mandatory quota determines the minimum level of work a company must conduct primarily to decommission and reclaim a proportion of its inactive inventory.

Inactive wells are defined as those that have not been used for six months or a year, depending on what they are being used for. When a company decides that they will not reactivate an inactive well they decommission it through a process called abandonment.

A well is considered successfully abandoned after it is cleaned, plugged with cement, cut to a minimum of one meter below the surface and covered with a vented cap. After abandonment comes remediation and reclamation, where the land around the well is returned to the equivalent of its original state.

The first two years under the new rules saw Alberta’s energy industry significantly exceed the minimum closure requirements.

In 2022, companies spent more than $696 million, about 65 per cent more than the initial threshold of $422 million. The AER increased the minimum spend to $700 million in 2023, which producers surpassed by 22 per cent with total expenditures of $923 million.

The 2024 minimum remains at $700 million, while in July the regulator announced that the minimum spend for 2025 was raised to $750 million.

This closure work does not include remediation of oil sands mining sites, which is handled under the Mine Financial Security Program, nor does it include the closure of orphan wells (wells without a legal owner) managed by the industry-funded Orphan Well Association.

Gurpreet Lail, CEO of Enserva, an industry association representing energy service companies, suppliers and manufacturers, says there was an initial rush of closure work when the quotas were first put in place, but activity has since become more even as companies develop long-term closure plans.

“A lot of the low-lying fruit has been taken care of, so now companies are working on more complex closure files that take more time and more money,” Lail says.

Facility owners say that Alberta’s rules provide direction for planning closure and remediation work, which in the past may have been put on hold due to the ups and downs of the oil and gas market.

“When commodity prices are up, everyone is focused on drilling more wells and when prices are down, budgets are strained for doing work that doesn’t bring in revenue. Having a minimum spend makes sure closure work happens every year and ensures there is longer-term progress,” says Deborah Borthwick, asset retirement coordinator for Birchcliff Energy, an oil and natural gas producer focused in Alberta.

Over the last few years, Birchcliff has budgeted more than $3 million for annual facility closure work, far above its required minimum spend.

The company completed 11 well abandonments and decommissioned 23 facilities and pipelines in 2022, according to its latest environmental, social and governance report.

Borthwick says having the closure quota for 2025 already set has allowed it to plan ahead and line up the necessary service companies well in advance for next year’s remediation work.

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Alberta

Albertans need clarity on prime minister’s incoherent energy policy

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From the Fraser Institute

By Tegan Hill

The new government under Prime Minister Mark Carney recently delivered its throne speech, which set out the government’s priorities for the coming term. Unfortunately, on energy policy, Albertans are still waiting for clarity.

Prime Minister Carney’s position on energy policy has been confusing, to say the least. On the campaign trail, he promised to keep Trudeau’s arbitrary emissions cap for the oil and gas sector, and Bill C-69 (which opponents call the “no more pipelines act”). Then, two weeks ago, he said his government will “change things at the federal level that need to be changed in order for projects to move forward,” adding he may eventually scrap both the emissions cap and Bill C-69.

His recent cabinet appointments further muddied his government’s position. On one hand, he appointed Tim Hodgson as the new minister of Energy and Natural Resources. Hodgson has called energy “Canada’s superpower” and promised to support oil and pipelines, and fix the mistrust that’s been built up over the past decade between Alberta and Ottawa. His appointment gave hope to some that Carney may have a new approach to revitalize Canada’s oil and gas sector.

On the other hand, he appointed Julie Dabrusin as the new minister of Environment and Climate Change. Dabrusin was the parliamentary secretary to the two previous environment ministers (Jonathan Wilkinson and Steven Guilbeault) who opposed several pipeline developments and were instrumental in introducing the oil and gas emissions cap, among other measures designed to restrict traditional energy development.

To confuse matters further, Guilbeault, who remains in Carney’s cabinet albeit in a diminished role, dismissed the need for additional pipeline infrastructure less than 48 hours after Carney expressed conditional support for new pipelines.

The throne speech was an opportunity to finally provide clarity to Canadians—and specifically Albertans—about the future of Canada’s energy industry. During her first meeting with Prime Minister Carney, Premier Danielle Smith outlined Alberta’s demands, which include scrapping the emissions cap, Bill C-69 and Bill C-48, which bans most oil tankers loading or unloading anywhere on British Columbia’s north coast (Smith also wants Ottawa to support an oil pipeline to B.C.’s coast). But again, the throne speech provided no clarity on any of these items. Instead, it contained vague platitudes including promises to “identify and catalyse projects of national significance” and “enable Canada to become the world’s leading energy superpower in both clean and conventional energy.”

Until the Carney government provides a clear plan to address the roadblocks facing Canada’s energy industry, private investment will remain on the sidelines, or worse, flow to other countries. Put simply, time is up. Albertans—and Canadians—need clarity. No more flip flopping and no more platitudes.

Tegan Hill

Tegan Hill

Director, Alberta Policy, Fraser Institute
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Addictions

New RCMP program steering opioid addicted towards treatment and recovery

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News release from Alberta RCMP

Virtual Opioid Dependency Program serves vulnerable population in Red Deer

Since April 2024, your Alberta RCMP’s Community Safety and Well-being Branch (CSWB) has been piloting the Virtual Opioid Dependency Program (VODP) program in Red Deer to assist those facing opioid dependency with initial-stage intervention services. VODP is a collaboration with the Government of Alberta, Recovery Alberta, and the Alberta RCMP, and was created to help address opioid addiction across the province.

Red Deer’s VODP consists of two teams, each consisting of a police officer and a paramedic. These teams cover the communities of Red Deer, Innisfail, Blackfalds and Sylvan Lake. The goal of the program is to have frontline points of contact that can assist opioid users by getting them access to treatment, counselling, and life-saving medication.

The Alberta RCMP’s role in VODP:

  • Conducting outreach in the community, on foot, by vehicle, and even UTV, and interacting with vulnerable persons and talking with them about treatment options and making VODP referrals.
  • Attending calls for service in which opioid use may be a factor, such as drug poisonings, open drug use in public, social diversion calls, etc.
  • Administering medication such as Suboxone and Sublocade to opioid users who are arrested and lodged in RCMP cells and voluntarily wish to participate in VODP; these medications help with withdrawal symptoms and are the primary method for treating opioid addiction. Individuals may be provided ongoing treatment while in police custody or incarceration.
  • Collaborating with agencies in the treatment and addiction space to work together on client care. Red Deer’s VODP chairs a quarterly Vulnerable Populations Working Group meeting consisting of a number of local stakeholders who come together to address both client and community needs.

While accountability for criminal actions is necessary, the Alberta RCMP recognizes that opioid addiction is part of larger social and health issues that require long-term supports. Often people facing addictions are among offenders who land in a cycle of criminality. As first responders, our officers are frequently in contact with these individuals. We are ideally placed to help connect those individuals with the VODP. The Alberta RCMP helps those individuals who wish to participate in the VODP by ensuring that they have access to necessary resources and receive the medical care they need, even while they are in police custody.

Since its start, the Red Deer program has made nearly 2,500 referrals and touchpoints with individuals, discussing VODP participation and treatment options. Some successes of the program include:

  • In October 2024, Red Deer VODP assessed a 35-year-old male who was arrested and in police custody. The individual was put in contact with medical care and was prescribed and administered Suboxone. The team members did not have any contact with the male again until April 2025 when the individual visited the detachment to thank the team for treating him with care and dignity while in cells, and for getting him access to treatment. The individual stated he had been sober since, saying the treatment saved his life.

 

  • In May 2025, the VODP team worked with a 14-year-old female who was arrested on warrants and lodged in RCMP cells. She had run away from home and was located downtown using opioids. The team spoke to the girl about treatment, was referred to VODP, and was administered Sublocade to treat her addiction. During follow-up, the team received positive feedback from both the family and the attending care providers.

The VODP provides same-day medication starts, opioid treatment transition services, and ongoing opioid dependency care to people anywhere in Alberta who are living with opioid addiction. Visit vodp.ca to learn more.

“This collaboration between Alberta’s Government, Recovery Alberta and the RCMP is a powerful example of how partnerships between health and public safety can change lives. The Virtual Opioid Dependency Program can be the first step in a person’s journey to recovery,” says Alberta’s Minister of Mental Health and Addiction Rick Wilson. “By connecting people to treatment when and where they need it most, we are helping build more paths to recovery and to a healthier Alberta.”

“Part of the Alberta RCMP’s CSWB mandate is the enhancement of public safety through community partnerships,” says Supt. Holly Glassford, Detachment Commander of Red Deer RCMP. “Through VODP, we are committed to building upon community partnerships with social and health agencies, so that we can increase accessibility to supports in our city and reduce crime in Red Deer. Together we are creating a stronger, safer Alberta.”

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