Calgary, Alberta (Jan 17, 2024)
“CAPP welcomes the Alberta Energy Regulators’ annual reporting regarding liability management performance. Changes made in recent years by the Province to the liability management framework, including the industry-wide closure spend requirement introduced in 2022, have resulted in a significant acceleration in the closure of inactive wells in Alberta. The inactive well inventory decreased by 14% between 2020 and 2022 and this downward trend continued through 2023. Licensees spent $696 million on closure activities in 2022, exceeding the closure spend requirement by 65%. Inactive well closure and the reduction of the liability of inactive well sites remain a priority for the industry. While there is more work to do to reduce inventories, CAPP is proud of the recent progress and confident that the upstream industry is on the right track as we continue to prioritize closure of upstream inactive sites in the coming years.”
Richard Wong, Vice President, Regulatory & Operations, CAPP
About CAPP
The Canadian Association of Petroleum Producers (CAPP) is a non-partisan, research-based industry association that advocates on behalf of our member companies, large and small, that explore for, develop, and produce oil and natural gas throughout Canada. Our associate members provide a wide range of services that support the upstream industry. CAPP’s members produce nearly three quarters of Canada’s annual oil and natural gas production and provide more than 400,000 direct and indirect jobs in nearly all regions of Canada. In 2022 across Canada, our industry contributed $111 billion to the Gross Domestic Product (GDP) in addition to paying $45 billion in taxes and royalty payments. CAPP is a solution-oriented partner and works with all levels of government to ensure a thriving Canadian oil and natural gas industry. We strive to meet the need for safe, reliable, affordable, and responsibly produced energy, for Canada and the world. We are proud to amplify industry efforts to reduce GHG emissions from oil and gas production and support Indigenous participation and prosperity.