The Energy Mix
Subscribe
Donate
  • Topics
    • Buildings & Infrastructure
    • Climate Equity & Justice
      • Energy Poverty
      • Indigenous Rights & Reconciliation
    • Climate Finance
      • Community Climate Finance
      • Finance & Investment
      • Insurance & Liability
      • Subsidies
    • Climate Impacts & Adaptation
      • Biodiversity & Habitat
      • Drought & Wildfires
      • Forests & Deforestation
      • Health & Safety
      • Heat & Temperature
      • Ice Loss & Sea Level Rise
      • Severe Storms & Flooding
    • Emissions
      • Carbon Levels & Measurement
      • CCS & Negative Emissions
      • Methane
    • Energy
      • Renewables
      • Fossil Fuels
      • Hydrogen
      • Nuclear
      • Batteries & Storage
      • Energy Efficiency
      • Power Grids
    • Food & Agriculture
    • Industry
      • Data Centres & Tech
      • Critical Minerals & Mining
      • Petrochemicals & Plastics
    • Policy & Politics
      • Carbon Pricing
      • COP Conferences
      • Elections
      • Energy Politics
      • International Security & War
      • Legal & Regulatory
    • Research & Innovation
      • International Agencies & Studies
      • Research & Development
    • Society & Culture
      • Climate Action
      • Mis/Disinformation & Greenwashing
      • Jobs & Training
      • Leisure & Recreation
      • Media, Messaging, & Public Opinion
    • Transportation & Mobility
      • Electric Vehicles
      • Shipping & Aviation
      • Transit
      • Walking, Biking & Micromobility
  • Regions
    • Africa
    • Arctic & Antarctica
    • Asia
    • Australia
    • Canada
    • International
    • Mexico & the Caribbean
    • Middle East
    • Oceans
    • Small Island States
    • South & Central America
    • Subnational
    • United States
    • UK & Europe
  • Special Coverage
    • The Weekender
    • IEA2026
    • Canada’s Major Projects Office
    • Hidden Wonder Valley
    • COP30
    • Cities & Communities
    • Heat & Power
    • Community Climate Finance
  • More Resources
    • Climate Glossary
    • What If We Changed the Conversation on Climate Change?
    • Eco-Anxiety
  • About
  • Contact
No Result
View All Result
The Energy Mix
  • Topics
    • Buildings & Infrastructure
    • Climate Equity & Justice
      • Energy Poverty
      • Indigenous Rights & Reconciliation
    • Climate Finance
      • Community Climate Finance
      • Finance & Investment
      • Insurance & Liability
      • Subsidies
    • Climate Impacts & Adaptation
      • Biodiversity & Habitat
      • Drought & Wildfires
      • Forests & Deforestation
      • Health & Safety
      • Heat & Temperature
      • Ice Loss & Sea Level Rise
      • Severe Storms & Flooding
    • Emissions
      • Carbon Levels & Measurement
      • CCS & Negative Emissions
      • Methane
    • Energy
      • Renewables
      • Fossil Fuels
      • Hydrogen
      • Nuclear
      • Batteries & Storage
      • Energy Efficiency
      • Power Grids
    • Food & Agriculture
    • Industry
      • Data Centres & Tech
      • Critical Minerals & Mining
      • Petrochemicals & Plastics
    • Policy & Politics
      • Carbon Pricing
      • COP Conferences
      • Elections
      • Energy Politics
      • International Security & War
      • Legal & Regulatory
    • Research & Innovation
      • International Agencies & Studies
      • Research & Development
    • Society & Culture
      • Climate Action
      • Mis/Disinformation & Greenwashing
      • Jobs & Training
      • Leisure & Recreation
      • Media, Messaging, & Public Opinion
    • Transportation & Mobility
      • Electric Vehicles
      • Shipping & Aviation
      • Transit
      • Walking, Biking & Micromobility
  • Regions
    • Africa
    • Arctic & Antarctica
    • Asia
    • Australia
    • Canada
    • International
    • Mexico & the Caribbean
    • Middle East
    • Oceans
    • Small Island States
    • South & Central America
    • Subnational
    • United States
    • UK & Europe
  • Special Coverage
    • The Weekender
    • IEA2026
    • Canada’s Major Projects Office
    • Hidden Wonder Valley
    • COP30
    • Cities & Communities
    • Heat & Power
    • Community Climate Finance
  • More Resources
    • Climate Glossary
    • What If We Changed the Conversation on Climate Change?
    • Eco-Anxiety
  • About
  • Contact
Subscribe
Donate
The Energy Mix
Subscribe

Fossils Lobby for Subsidies as Decommissioning Orphan Wells Becomes Oilpatch’s Only Growth Industry

October 27, 2019
Reading time: 2 minutes

https://en.wikipedia.org/wiki/Extraction_of_petroleum

Flcelloguy/Wikimedia Commons

With more oil and gas wells abandoned than drilled in Alberta this year, decommissioning dead rigs is the only business showing any kind of growth in Western Canada’s struggling oilpatch.

Citing the Alberta Energy Regulator, CBC reports that as of early October, 3,666 wells had been abandoned in Alberta so far this year. According to the Petroleum Services Association of Canada (PSAC), only 2,425 wells were on track to be drilled in the province by the end of 2019—3,352 fewer than during the oil boom 10 years ago.

With the boom turned to bust, oilfield service companies which had depended heavily on drilling wells are turning increasingly to decommissioning them, especially the smaller companies that “would go belly up” without the work.

Get the latest climate news and analysis, direct to your inbox.

Subscribe Today

View our latest digests

And “the growth potential for decommissioning wells is substantial considering there are about 93,000 inactive wells in Alberta and 139,000 across Western Canada,” CBC writes. Further improving the outlook for those companies seeking to keep afloat by taking old wells out of commission was the 2018 decision by the previous Alberta government to loan the industry-funded Orphan Well Association C$235 million over two years, to assist in its mission to clean up the wells that are all too often abandoned when fossils declare bankruptcy.

“The financial boost from the government loan has made a ‘substantial’ difference as nearly 800 wells were cleaned up this past year, a figure which has increased steadily from 50 wells in 2014,” the national broadcaster reports, citing the  OWA.

A complex process with an uncertain and often expensive trajectory, the decommissioning business itself is not exactly booming, however. CBC says actual results depend in part on the geological location of the well, as well as its age, and can cost a fossil company anywhere from $100,000 to $500,000.

Such uncertainty often led to industry skipping the clean-up bit entirely—that is, until the Supreme Court ruled in January that bankruptcy could no longer be used as a shield to leave oil and gas infrastructure rusting away in a field.

Thus pressed, the industry is seeking further support from both provincial and federal levels of government. Oilpatch consultant and policy analyst David Yager told CBC he hopes the Kenney government will “relax some of the regulations about abandonment work,” suggesting that such regulations “might be an obstacle to getting the work done”.

The oilfield service industry has also been lobbying Ottawa, unsuccessfully so far, “for a type of investor tax credit or resource credit to spur decommissioning work.”







in Canada, Community Climate Finance, Energy Politics, Jobs & Training, Legal & Regulatory, Oil & Gas, Subnational, Subsidies

Trending Stories

(Mark Carney/Facebook)
Energy Efficiency

Carney Promises Heat Pump Rebate Program By Early 2027

October 9, 2026
2.3k
CC BY-SA 3.0/wikimedia commons
Data Centres & Tech

O’Leary Data Centre Megaproject Faces Two New Applications for Judicial Reviews

October 16, 2026
636
Canadian Nuclear Laboratories/flickr
Nuclear

RIP SMRs: Is It the End of the Line for Small Modular Nuclear Reactors?

September 23, 2026
9.2k

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

Get the latest climate news and analysis, direct to your inbox.

Subscribe Today

A Modest Proposal for a New Project of National Interest

by Aaron Cosbey
October 4, 2026

…

Follow Us

Fossils Lobby for Subsidies as Decommissioning Orphan Wells Becomes Oilpatch’s Only Growth Industry

October 27, 2019
Reading time: 2 minutes

https://en.wikipedia.org/wiki/Extraction_of_petroleum

Flcelloguy/Wikimedia Commons

With more oil and gas wells abandoned than drilled in Alberta this year, decommissioning dead rigs is the only business showing any kind of growth in Western Canada’s struggling oilpatch.

Citing the Alberta Energy Regulator, CBC reports that as of early October, 3,666 wells had been abandoned in Alberta so far this year. According to the Petroleum Services Association of Canada (PSAC), only 2,425 wells were on track to be drilled in the province by the end of 2019—3,352 fewer than during the oil boom 10 years ago.

With the boom turned to bust, oilfield service companies which had depended heavily on drilling wells are turning increasingly to decommissioning them, especially the smaller companies that “would go belly up” without the work.

Get the latest climate news and analysis, direct to your inbox.

Subscribe Today

View our latest digests

And “the growth potential for decommissioning wells is substantial considering there are about 93,000 inactive wells in Alberta and 139,000 across Western Canada,” CBC writes. Further improving the outlook for those companies seeking to keep afloat by taking old wells out of commission was the 2018 decision by the previous Alberta government to loan the industry-funded Orphan Well Association C$235 million over two years, to assist in its mission to clean up the wells that are all too often abandoned when fossils declare bankruptcy.

“The financial boost from the government loan has made a ‘substantial’ difference as nearly 800 wells were cleaned up this past year, a figure which has increased steadily from 50 wells in 2014,” the national broadcaster reports, citing the  OWA.

A complex process with an uncertain and often expensive trajectory, the decommissioning business itself is not exactly booming, however. CBC says actual results depend in part on the geological location of the well, as well as its age, and can cost a fossil company anywhere from $100,000 to $500,000.

Such uncertainty often led to industry skipping the clean-up bit entirely—that is, until the Supreme Court ruled in January that bankruptcy could no longer be used as a shield to leave oil and gas infrastructure rusting away in a field.

Thus pressed, the industry is seeking further support from both provincial and federal levels of government. Oilpatch consultant and policy analyst David Yager told CBC he hopes the Kenney government will “relax some of the regulations about abandonment work,” suggesting that such regulations “might be an obstacle to getting the work done”.

The oilfield service industry has also been lobbying Ottawa, unsuccessfully so far, “for a type of investor tax credit or resource credit to spur decommissioning work.”







in Canada, Community Climate Finance, Energy Politics, Jobs & Training, Legal & Regulatory, Oil & Gas, Subnational, Subsidies

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

Trending Stories

(Mark Carney/Facebook)

Carney Promises Heat Pump Rebate Program By Early 2027

October 9, 2026
2.3k
CC BY-SA 3.0/wikimedia commons

O’Leary Data Centre Megaproject Faces Two New Applications for Judicial Reviews

October 16, 2026
636
Canadian Nuclear Laboratories/flickr

RIP SMRs: Is It the End of the Line for Small Modular Nuclear Reactors?

September 23, 2026
9.2k

A Modest Proposal for a New Project of National Interest

by Aaron Cosbey
October 4, 2026

…

Follow Us

Copyright 2026 © Energy Mix Productions Inc. All rights reserved.

  • About
  • Contact
  • Privacy Policy and Copyright
  • Cookie Policy
No Result
View All Result
  • Topics
    • Buildings & Infrastructure
    • Climate Equity & Justice
      • Energy Poverty
      • Indigenous Rights & Reconciliation
    • Climate Finance
      • Community Climate Finance
      • Finance & Investment
      • Insurance & Liability
      • Subsidies
    • Climate Impacts & Adaptation
      • Biodiversity & Habitat
      • Drought & Wildfires
      • Forests & Deforestation
      • Health & Safety
      • Heat & Temperature
      • Ice Loss & Sea Level Rise
      • Severe Storms & Flooding
    • Emissions
      • Carbon Levels & Measurement
      • CCS & Negative Emissions
      • Methane
    • Energy
      • Renewables
      • Fossil Fuels
      • Hydrogen
      • Nuclear
      • Batteries & Storage
      • Energy Efficiency
      • Power Grids
    • Food & Agriculture
    • Industry
      • Data Centres & Tech
      • Critical Minerals & Mining
      • Petrochemicals & Plastics
    • Policy & Politics
      • Carbon Pricing
      • COP Conferences
      • Elections
      • Energy Politics
      • International Security & War
      • Legal & Regulatory
    • Research & Innovation
      • International Agencies & Studies
      • Research & Development
    • Society & Culture
      • Climate Action
      • Mis/Disinformation & Greenwashing
      • Jobs & Training
      • Leisure & Recreation
      • Media, Messaging, & Public Opinion
    • Transportation & Mobility
      • Electric Vehicles
      • Shipping & Aviation
      • Transit
      • Walking, Biking & Micromobility
  • Regions
    • Africa
    • Arctic & Antarctica
    • Asia
    • Australia
    • Canada
    • International
    • Mexico & the Caribbean
    • Middle East
    • Oceans
    • Small Island States
    • South & Central America
    • Subnational
    • United States
    • UK & Europe
  • Special Coverage
    • The Weekender
    • IEA2026
    • Canada’s Major Projects Office
    • Hidden Wonder Valley
    • COP30
    • Cities & Communities
    • Heat & Power
    • Community Climate Finance
  • More Resources
    • Climate Glossary
    • What If We Changed the Conversation on Climate Change?
    • Eco-Anxiety
  • About
  • Contact

Copyright 2025 © Smarter Shift Inc. and Energy Mix Productions Inc. All rights reserved.

Manage Cookie Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behaviour or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
  • Manage options
  • Manage services
  • Manage {vendor_count} vendors
  • Read more about these purposes
View preferences
  • {title}
  • {title}
  • {title}
No Result
View All Result
  • Topics
    • Buildings & Infrastructure
    • Climate Equity & Justice
      • Energy Poverty
      • Indigenous Rights & Reconciliation
    • Climate Finance
      • Community Climate Finance
      • Finance & Investment
      • Insurance & Liability
      • Subsidies
    • Climate Impacts & Adaptation
      • Biodiversity & Habitat
      • Drought & Wildfires
      • Forests & Deforestation
      • Health & Safety
      • Heat & Temperature
      • Ice Loss & Sea Level Rise
      • Severe Storms & Flooding
    • Emissions
      • Carbon Levels & Measurement
      • CCS & Negative Emissions
      • Methane
    • Energy
      • Renewables
      • Fossil Fuels
      • Hydrogen
      • Nuclear
      • Batteries & Storage
      • Energy Efficiency
      • Power Grids
    • Food & Agriculture
    • Industry
      • Data Centres & Tech
      • Critical Minerals & Mining
      • Petrochemicals & Plastics
    • Policy & Politics
      • Carbon Pricing
      • COP Conferences
      • Elections
      • Energy Politics
      • International Security & War
      • Legal & Regulatory
    • Research & Innovation
      • International Agencies & Studies
      • Research & Development
    • Society & Culture
      • Climate Action
      • Mis/Disinformation & Greenwashing
      • Jobs & Training
      • Leisure & Recreation
      • Media, Messaging, & Public Opinion
    • Transportation & Mobility
      • Electric Vehicles
      • Shipping & Aviation
      • Transit
      • Walking, Biking & Micromobility
  • Regions
    • Africa
    • Arctic & Antarctica
    • Asia
    • Australia
    • Canada
    • International
    • Mexico & the Caribbean
    • Middle East
    • Oceans
    • Small Island States
    • South & Central America
    • Subnational
    • United States
    • UK & Europe
  • Special Coverage
    • The Weekender
    • IEA2026
    • Canada’s Major Projects Office
    • Hidden Wonder Valley
    • COP30
    • Cities & Communities
    • Heat & Power
    • Community Climate Finance
  • More Resources
    • Climate Glossary
    • What If We Changed the Conversation on Climate Change?
    • Eco-Anxiety
  • About
  • Contact

Copyright 2025 © Smarter Shift Inc. and Energy Mix Productions Inc. All rights reserved.