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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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5 minute read

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

Alberta passes bill banning sex ‘reassignment’ surgeries on minors

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From LifeSiteNews

By Anthony Murdoch

Tuesday, MLAs in the Alberta legislature voted 47 to 33 to pass the Health Statutes Amendment Act (HSAA), with all New Democratic Party MLAs voting against the measure.

The United Conservative Party (UCP) government of Alberta under its Premier Danielle Smith has officially passed a law banning so-called “top and bottom” surgeries for minors. 

On Tuesday, MLAs in the Alberta legislature voted 47 to 33 to pass the Health Statutes Amendment Act (HSAA) into law. All far-left New Democratic Party MLAs voted against the bill, which now awaits Royal Assent which is expected in the next few days.

The new law, called Bill 26, reflects “the government’s commitment to build a health care system that responds to the changing needs of Albertans,” it said.

The bill will amend the Health Act to “prohibit regulated health professionals from performing sex reassignment surgeries on minors.” 

It will also ban the “use of puberty blockers and hormone therapies for the treatment of gender dysphoria or gender incongruence” to kids 15 and under “except for those who have already commenced treatment and would allow for minors aged 16 and 17 to choose to commence puberty blockers and hormone therapies for gender reassignment and affirmation purposes with parental, physician and psychologist approval.” 

Speaking of the passage of the new law, Smith said she is not concerned she may have to use additional powers, such as the province’s notwithstanding clause, to make sure the bill stays in place, given the fact that left-wing LGBT activists have promised to challenge the bill in court. 

“I think that both the Charter as well as our Bill of Rights has the ability to make decisions and make policy that is convenient, that is reasonable, that is evidence-based,” said Smith in speaking to the passage of the bill.  

“And I think the decisions we made are all of those things.”  

Smith had earlier said about the bill that it is “important that all youth can enter adulthood equipped to make adult decisions. In order to do that, we need to preserve their ability to make those decisions, and that’s what we’re doing.”  

The passage of Bill 26 came after Alberta’s pro-life Health Minister Adriana LaGrange moved the third reading of it. She praised its passage, saying further details about how it will be enforced will be coming soon.  

“Finally, amendments to the Health Professions Act would prohibit regulated health professionals from performing sex reassignment surgeries on minors and would also prohibit regulated health professionals from prescribing hormone replacement therapies, including puberty blockers, to minors for the treatment of gender dysphoria or gender incongruence,” said LaGrange.  

“Through a ministerial order, we will outline exceptions for when a minor can be prescribed these medications for the treatment of gender dysphoria or gender incongruence.”  

Earlier this year, the UCP government under Smith announced she would introduce strong pro-family legislation that strengthens parental rights, protects kids from life-altering surgeries as well as other extreme forms of transgender ideology. 

While Smith has done well on some points, she has still been relatively soft on social issues of importance to conservatives such as abortion, and has publicly expressed pro-LGBT views, telling Jordan Peterson earlier this year that conservatives must embrace homosexual “couples” as “nuclear families.” 

Alberta law banning sex reassignment surgeries has support of ‘detransitioners’ 

Smith’s bill banning the sexual mutilation of minors, as reported by LifeSiteNews, has found the  support of an alliance for detransitioners. 

There has been overwhelming evidence showing that people who undergo so-called “gender transitioning” are more likely to commit suicide than those who are not given irreversible surgery. 

In addition to catering to a false reality that one’s sex can be changed, transgender surgeries and drugs have been linked to permanent physical and psychological damage, including cardiovascular diseases, loss of bone density, cancer, strokes and blood clots, and infertility. 

Meanwhile, a recent study on the side effects of transgender “sex change” surgeries discovered that 81 percent of those who had undergone “sex change” surgeries in the past five years reported experiencing pain simply from normal movement in the weeks and months that followed — and that many other side effects manifest as well. 

Smith’s government also passed a law banning schools from hiding a child’s pronoun changes at school that will help protect kids from the extreme aspects of the LGBT agenda.

While social conservatives have cause to celebrate in Alberta, other provinces, such as New Brunswick, are heading in the opposite direction when it comes to parental rights and gender ideology more broadly.

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Alberta

Alberta laying out the welcome mat for AI Data Centres

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Fueling innovation through AI data centre attraction

Alberta’s government is aiming for Alberta to become North America’s destination of choice for Artificial Intelligence (AI) data centre investment.

The AI data centre attraction strategy identifies three pillars that create the foundation of Alberta’s work to position itself as a competitive player in the global AI landscape: power capacity, sustainable cooling and economic diversification. In each of these strategic areas, there are policy and regulatory levers required in addition to other steps Alberta’s government is taking to ensure Alberta is the most attractive and competitive destination for this emerging sector. The entire approach prioritizes competitive advantages, economic integration, market stability and keeping utilities reliable and affordable.

“Artificial intelligence is behind all the newest technologies we rely on to make our lives better, simpler, safer. There’s incredible opportunity around artificial intelligence and we are unafraid to dream big. This strategy will position Alberta as the place to invest and build AI data centres, further building on our reputation as a province with no limit to innovation and opportunity.”

Danielle Smith, Premier of Alberta

The world’s largest AI companies are in search of opportunities to build and energize their data centres. Alberta, with its abundant natural gas supply and world-class power industry, is highly attractive to AI data centre projects. The province’s unique competitive power market opens the door to many opportunities for AI companies to partner with Alberta’s talented and experienced electricity sector. The sector has decades of experience in finding innovative solutions to meet industry’s power needs while maintaining a balance of affordability and reliability in a system that Albertans count on.

AI data centres generate a lot of heat and require cooling. The strategy encourages operators to determine the cooling technology best suited for their needs, water license availability and regional and project circumstance. Additionally, Alberta’s climate offers significant advantages for AI data centres because of the province’s cold winters, which would reduce the need for artificial cooling systems.

Alberta’s government seeks to ensure Albertans benefit from AI data centres and is committed to ensuring economic growth and shared prosperity while ensuring Alberta continues to have the lowest taxes in Canada and is competitive across North America.

“Alberta is uniquely positioned to capture the AI data center opportunity, leveraging our vast natural gas resources and pro-business environment to create thousands of high-quality jobs and attract billions in investment. This strategy is not just about building infrastructure; it’s about fostering innovation and establishing Alberta as a hub for high-tech industries, driving economic growth and supporting critical public services like healthcare and education.”

Nate Glubish, Minister of Technology and Innovation

Alberta is committed to fostering innovation and ensuring technology development aligns with industry needs. The strategy was developed after extensive consultation with organizations and businesses in the AI space and market participants.

“For AI companies to build and scale in Alberta, they need access to computing power. Data centers are economic growth engines that provide the computing power AI companies need to develop and deploy their innovations. grow their companies and stimulate the local economies. Beyond its natural advantages, Alberta boasts a robust AI ecosystem anchored by world-class research and talent. Many of the algorithms the world’s data centers are running on have been pioneered by Amii researchers right here in Alberta. The opportunity for those companies to be close to the source of some of the leading AI research gives them a competitive advantage in being at the forefront of what is coming next.”

Cam Linke, CEO, Alberta Machine Intelligence Institute (amii)

Quick facts

  • Over the past several months, Technology and Innovation met with AI data centre builders and operators, power generators, natural resource sector participants, telecommunications companies and municipalities actively pursuing AI data centres.
  • AI data centre market size is anticipated to more than double by 2030 to more than $820 billion. (P&S Market Research)
  • Alberta Electricity System Operator (AESO) has 12 data centre projects on their project list totalling 6,455 MW of load.
  • Most of the power demand on the AESO project list is from data centers.
  • Currently there is about 1,000 MW of additional dispatchable generation over Alberta’s current needs. This amount is dynamic and may change due to factors such as generation retirements, outages, derates, or new additions.

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