Berliner Boersenzeitung - In Canada, deserted oil wells are environmental time bombs

EUR -
AED 4.315389
AFN 75.20314
ALL 95.620417
AMD 434.770723
ANG 2.103214
AOA 1078.701182
ARS 1630.662976
AUD 1.621952
AWG 2.116569
AZN 1.980104
BAM 1.949993
BBD 2.374907
BDT 144.489124
BGN 1.960113
BHD 0.445595
BIF 3512.750059
BMD 1.175056
BND 1.492819
BOB 8.12178
BRL 5.786096
BSD 1.179152
BTN 111.210363
BWP 15.778369
BYN 3.319302
BYR 23031.095705
BZD 2.371506
CAD 1.60267
CDF 2721.429668
CHF 0.915304
CLF 0.026772
CLP 1053.66111
CNY 8.003599
CNH 7.996849
COP 4379.210091
CRC 538.014879
CUC 1.175056
CUP 31.138981
CVE 110.396794
CZK 24.325773
DJF 209.974835
DKK 7.472633
DOP 70.255001
DZD 155.328254
EGP 61.938769
ERN 17.625839
ETB 184.115797
FJD 2.566263
FKP 0.865572
GBP 0.864312
GEL 3.149673
GGP 0.865572
GHS 13.219015
GIP 0.865572
GMD 86.365776
GNF 10349.209811
GTQ 8.972244
GYD 245.866808
HKD 9.203767
HNL 31.347827
HRK 7.532929
HTG 154.322952
HUF 358.205803
IDR 20394.270258
ILS 3.418414
IMP 0.865572
INR 111.455108
IQD 1539.323233
IRR 1542848.400886
ISK 143.803446
JEP 0.865572
JMD 185.789671
JOD 0.83313
JPY 183.754035
KES 151.819926
KGS 102.723973
KHR 4726.009119
KMF 492.348489
KPW 1057.55442
KRW 1706.0761
KWD 0.361798
KYD 0.979479
KZT 544.286899
LAK 25815.978342
LBP 105200.39284
LKR 376.277914
LRD 215.710852
LSL 19.429521
LTL 3.469635
LVL 0.71078
LYD 7.463594
MAD 10.80875
MDL 20.204748
MGA 4913.049057
MKD 61.645047
MMK 2467.087736
MNT 4206.288306
MOP 9.486411
MRU 47.062049
MUR 54.898372
MVR 18.160455
MWK 2044.63658
MXN 20.268715
MYR 4.593301
MZN 75.097425
NAD 19.429617
NGN 1598.698819
NIO 43.389265
NOK 10.932185
NPR 178.505875
NZD 1.97232
OMR 0.45181
PAB 1.175395
PEN 4.068628
PGK 5.127117
PHP 71.18602
PKR 328.556533
PLN 4.23271
PYG 7216.540909
QAR 4.281931
RON 5.266244
RSD 117.379835
RUB 87.829436
RWF 1724.268174
SAR 4.416122
SBD 9.423281
SCR 16.81301
SDG 705.621732
SEK 10.858577
SGD 1.489677
SHP 0.877298
SLE 28.965269
SLL 24640.33026
SOS 673.843882
SRD 43.959988
STD 24321.284771
STN 24.505337
SVC 10.284331
SYP 130.670561
SZL 19.216003
THB 37.977673
TJS 10.984045
TMT 4.118571
TND 3.375344
TOP 2.829253
TRY 53.164129
TTD 7.965247
TWD 36.854802
TZS 3056.241658
UAH 51.698339
UGX 4419.819797
USD 1.175056
UYU 47.22936
UZS 14188.799821
VES 579.885899
VND 30918.070929
VUV 138.950861
WST 3.19919
XAF 656.097093
XAG 0.015053
XAU 0.00025
XCD 3.175648
XCG 2.118383
XDR 0.815974
XOF 656.097093
XPF 119.331742
YER 280.397755
ZAR 19.268038
ZMK 10576.910698
ZMW 22.315765
ZWL 378.367521
  • CMSC

    0.1300

    23.01

    +0.56%

  • NGG

    0.2100

    87.85

    +0.24%

  • GSK

    0.1500

    50.53

    +0.3%

  • BTI

    0.1600

    59.56

    +0.27%

  • AZN

    3.6800

    184.92

    +1.99%

  • CMSD

    0.1300

    23.42

    +0.56%

  • RIO

    5.0100

    105.51

    +4.75%

  • BCC

    2.1100

    74.24

    +2.84%

  • BP

    -1.8700

    44.63

    -4.19%

  • BCE

    0.1300

    24.23

    +0.54%

  • JRI

    0.1300

    13.17

    +0.99%

  • RYCEF

    0.8000

    17.3

    +4.62%

  • RBGPF

    0.0000

    63.18

    0%

  • VOD

    0.3900

    16.13

    +2.42%

  • RELX

    -0.4100

    35.75

    -1.15%

In Canada, deserted oil wells are environmental time bombs
In Canada, deserted oil wells are environmental time bombs / Photo: Geoff Robins - AFP

In Canada, deserted oil wells are environmental time bombs

With its flaking red paint, broken pressure gauge and cranks fallen to the ground, an oil well sits forsaken in western Canada, like tens of thousands of others that have been out of service for decades -- but never plugged.

Text size:

Activists and experts say the existence of these inactive oil and gas installations -- often dug hundreds of meters (yards) below the surface in Alberta province -- is a ticking ecological time bomb for the vast country.

"Every single one of them is simply steel and concrete. They erode and break down," said Regan Boychuk, the founder of Reclaim Alberta, a group advocating for the clean-up of such wells.

"Every one of these holes needs to be managed, monitored for eternity because of the danger of leaks," he told AFP.

Each one of these wells also emits methane, a potent greenhouse gas that, over a 20-year period, is "86 times more impactful compared to a molecule of carbon dioxide," stresses McGill University professor Mary Kang, who has written a study on the issue.

It's a source of pollution that she believes is likely underestimated and "has a much bigger uncertainty range compared to other methane emission sources," Kang notes.

More than 120,000 oil and gas wells are inactive but not sealed off in Alberta and Saskatchewan provinces, home to more than 90 percent of Canada's wells, according to government data released in 2022.

The oldest of these has not been used since World War I.

Overall, according to that government data, these installations have emitted an average of 16,000 tonnes of methane per year over a century -- the equivalent of 545,000 tonnes of carbon dioxide annually, or what about 237,000 vehicles emit in one year.

- Work postponed indefinitely -

Most of the wells were built sometime between the dawn of the oil and gas era in the 1860s and the end of the 1940s. In some provinces of Canada, which has the world's fourth largest proven oil reserves, they are not even registered.

After decades of industrial expansion, Alberta -- home to most of the country's oil resources, mainly in the form of oil sands -- saw the number of inactive wells increase rapidly since 2010, particularly after crude prices dropped off in 2014.

Under the polluter-pay principle enshrined in Canadian law, energy companies must pay for the plugging of wells and cleanup of the surrounding area, but there is thus far no deadline for that work to be completed.

This allows oil and gas firms to postpone the work indefinitely, or to transfer their inactive wells to smaller companies.

When these companies file for bankruptcy, the environmental burden for orphaned wells falls to provincial authorities -- and creates another bureaucratic nightmare.

Over roughly a decade, the number of orphaned wells in Alberta exploded, from 700 in 2010 to almost 10,000 in 2023.

The government in Ottawa says the cost of cleaning them up will soar from CAN $361 million (US $272 million) in 2020 to $1.1 billion in 2025.

While the Orphan Well Association in Alberta plans to get the job done over the next 10 to 12 years, some say the monumental task has been wildly misjudged.

"There are tens of thousands that fit the common sense definition, but only a few thousand are officially designated," Boychuk says.

- Polluted soil -

Albert Hummel, a farmer in southern Alberta, had seven abandoned wells on his land. But he's one of the lucky ones -- some of them were finally sealed off and "reclaimed," or restored to their original state. There are two left to handle.

"It's a slow process, it takes time," says Hummel, who lost the royalties he was earning for the use of his land once the oil company in question went out of business in 2019.

Once the soil is contaminated, it takes decades for the pollutants to evaporate. Only then can cleanup work begin.

After the ground is purified, the wells must be plugged with cement, each layer of soil carefully replaced, and the area leveled off with the surrounding fields for it to be considered "reclaimed."

Right in the middle of one of Hummel's fields, the remains of a well have prevented the farmer from using part of that land -- "it's just straight loss of production," he says, pointing to the pipes emerging from the earth.

In an effort to offset the loss and render the area at least partially useful, one small company has offered to install solar panels until the ground can be decontaminated.

"It just gives nature more time for the grass to come back, for contaminants to evaporate," says Daryl Bennett from the RenuWell project.

"It'll give a little more time to clean up the land and reclaim it, and it's producing renewable energy too."

But such solutions represent a drop in the bucket when compared to the overall cleanup at hand.

"Emissions from this legacy infrastructure, they're not going to go away," says Kang.

"It's something we're going to have to manage for years and decades to come."

(T.Burkhard--BBZ)