The Alberta government has returned over $137 million to the federal government after failing to spend the funds allocated for cleaning up old oil natural gas wells.
This has raised, given the province’s significant number of inactive wells.
The money was part of a $1 billion federal pledge in 2020 to mitigate environmental risks and support the oilfield service sector during the pandemic.
While Saskatchewan used all its funds and BC returned a small amount, Alberta struggled to utilize its share.
Alberta government initially faced challenges launching its Site Rehabilitation Program (SRP) due to an overwhelming number of applications.
Although many projects were eventually approved, some cleanup work remained incomplete due to poor weather and labor shortages.
Industry leaders argue that more time was needed to spend the funds effectively, especially for projects on Indigenous land.
Political science professor Duane Bratt criticized the situation, noting the provincial government’s frequent complaints about federal spending powers.
Despite the program’s overall success in aiding the industry, critics argue it was a missed opportunity to address Alberta’s inactive well problem.
Some funds went to wealthy companies that didn’t need assistance, and by the time the program gained momentum, oil and gas prices had already recovered.
The number of inactive wells in Alberta has slightly declined from 206,800 in 2020 to 177,801 this year.
Keith Hopper, Trending 55
