Managing Albertas Aging Energy Infrastructure Kirk Bailey, EVP, - PowerPoint PPT Presentation

Managing Alberta’s Aging Energy Infrastructure Kirk Bailey, EVP, Operations Alberta Energy Regulator Alberta ARO & Liability Executive Forum 2016 Dec 1

Alberta’s oil and gas well count inventory (Source: Alberta Energy Regulator). 2

AER Considerations Financial Liability 3

AER Considerations Environmental Protection 4

AER Considerations Future Potential 5

Reactivation of Wells < 0.2% of wells are reactivated after 10 years of inactivity Reactivated wells # of Wells Years Inactive

AER Considerations Competing Land Use 7

OWA Well Inventory and Wells Orphaned for Abandonment 800 768 705 700 591 600 500 Wells orphaned 400 Total orphan well inventory 300 258 200 162 100 80 74 50 0 2012/2013 2013/14 2014/15 2015/16

AER Current Initiatives 10

Inactive Well Compliance Program 20% 20% # Inactive Wells 20% 20% 20% Start of End End End End End Year 1 Year 2 Year 3 Year 4 Year 5 the Project Compliant inactive wells Noncompliant inactive wells

AER