Alberta's Inactive Wells: A Growing Environmental and Financial Time Bomb

A new policy paper from the Pembina Institute, titled 'No Well Left Behind', highlights the environmental and financial risks associated with Alberta's tens of thousands of inactive oil wells.

The report found that there are 77,869 inactive wells in Alberta that haven't produced oil or gas for at least six months and have yet to be sealed. This includes 7,382 orphaned wells, left behind by companies that have gone bankrupt and become the responsibility of the industry-funded Orphan Well Association.

The Pembina Institute recommends adopting an escalating inactive well fee, similar to California's, which would incentivize timely closure of these wells. The report also suggests imposing stringent upfront security requirements for oil and gas projects, similar to those applied to renewable energy production.