Alberta
For second year in a row, Alberta oil and gas companies spend more than required on cleanup

From the Canadian Energy Center
By Grady Semmens$923 million spent cleaning up inactive wells, sites and pipelines in 2023
As a business owner, Ryan Smith values few things more than predictability when it comes to the oil and gas market and the demand for his company’s services.
That’s why knowing that next year in Alberta, the regulator requires at least $750 million worth of work cleaning up inactive oil and gas wells and other legacy energy infrastructure is tremendously helpful for the CEO of Calgary-based 360 Engineering & Environmental Consulting.
“Having a minimum spend in place for the province makes the market more predictable and consistent, which in turn helps our clients and our business plan for the future, which is a good thing,” says Smith, whose company has completed more than 5,000 site closure activities in Canada and internationally since 2015.
“Site closure has really emerged as a growth market over the last decade, especially in Western Canada where the regulatory systems for oil and gas are more advanced than anywhere else we are exposed to. It is an integral part of the energy lifecycle, and if it is done well it adds a lot of value to the industry.”
The Alberta Energy Regulator (AER) introduced an industry-wide minimum “closure” spending requirement in 2022, part of Alberta’s Inventory Reduction Program to accelerate the remediation of inactive oil and gas wells, facilities and pipelines across the province.
The mandatory quota determines the minimum level of work a company must conduct primarily to decommission and reclaim a proportion of its inactive inventory.
Inactive wells are defined as those that have not been used for six months or a year, depending on what they are being used for. When a company decides that they will not reactivate an inactive well they decommission it through a process called abandonment.
A well is considered successfully abandoned after it is cleaned, plugged with cement, cut to a minimum of one meter below the surface and covered with a vented cap. After abandonment comes remediation and reclamation, where the land around the well is returned to the equivalent of its original state.
The first two years under the new rules saw Alberta’s energy industry significantly exceed the minimum closure requirements.
In 2022, companies spent more than $696 million, about 65 per cent more than the initial threshold of $422 million. The AER increased the minimum spend to $700 million in 2023, which producers surpassed by 22 per cent with total expenditures of $923 million.
The 2024 minimum remains at $700 million, while in July the regulator announced that the minimum spend for 2025 was raised to $750 million.
This closure work does not include remediation of oil sands mining sites, which is handled under the Mine Financial Security Program, nor does it include the closure of orphan wells (wells without a legal owner) managed by the industry-funded Orphan Well Association.
Gurpreet Lail, CEO of Enserva, an industry association representing energy service companies, suppliers and manufacturers, says there was an initial rush of closure work when the quotas were first put in place, but activity has since become more even as companies develop long-term closure plans.
“A lot of the low-lying fruit has been taken care of, so now companies are working on more complex closure files that take more time and more money,” Lail says.
Facility owners say that Alberta’s rules provide direction for planning closure and remediation work, which in the past may have been put on hold due to the ups and downs of the oil and gas market.
“When commodity prices are up, everyone is focused on drilling more wells and when prices are down, budgets are strained for doing work that doesn’t bring in revenue. Having a minimum spend makes sure closure work happens every year and ensures there is longer-term progress,” says Deborah Borthwick, asset retirement coordinator for Birchcliff Energy, an oil and natural gas producer focused in Alberta.
Over the last few years, Birchcliff has budgeted more than $3 million for annual facility closure work, far above its required minimum spend.
The company completed 11 well abandonments and decommissioned 23 facilities and pipelines in 2022, according to its latest environmental, social and governance report.
Borthwick says having the closure quota for 2025 already set has allowed it to plan ahead and line up the necessary service companies well in advance for next year’s remediation work.
Alberta
Alberta pushes back on illegal U.S. tariffs

Alberta’s government is implementing a proportionate, measured response to U.S. tariffs and taking decisive action on internal trade with free trade and mobility agreements.
As part of its non-tariff retaliatory measures, Alberta is altering its procurement practices to ensure Alberta’s government, as well as agencies, school boards, Crown corporations and Alberta municipalities, purchase their goods and services from Alberta companies, Canadian companies or countries with which Canada has a free trade agreement that is being honoured.
“I will always put the best interests of Alberta and Albertans first. These non-tariff actions are measured, proportionate and put an emphasis on defending Alberta and Canada against these economically destructive tariffs imposed by U.S. President Donald Trump, while breaking down restrictive provincial trade barriers so we can fast-track nation building resource projects and allow for the unrestricted movement of goods, services and labour across the country. I understand this is an uncertain time for many Albertans, and our government will continue to do all it can to prioritize Alberta’s and Canada’s world-class products and businesses as we face this challenge together. I also look forward to working with my provincial counterparts to help unite Canada and ensure free and fair trade throughout our country.”
Alberta’s government has also directed Alberta Gaming, Liquor and Cannabis to suspend the purchase of U.S. alcohol and video lottery terminals (VLTs) from American companies until further notice. This will ensure Alberta and Canadian brands take priority in restaurants, bars and on retail shelves.
“We are committed to putting Canadian businesses first. By suspending the purchase of U.S. produced alcohol, slot machines and VLTs, we are ensuring that Alberta and Canadian brands take priority in our restaurants, bars and retail stores. We will continue to take bold steps to support local industries and strengthen our economy.”
To encourage the purchase of stock from vendors in Alberta, Canada and other countries with which Canada has a free trade agreement, the government will help all Alberta grocers and other retailers with labelling Canadian products in their stores. In the coming weeks, Alberta’s government will augment these efforts by launching a “Buy Alberta” marketing campaign. Spearheaded by Minister of Agriculture and Irrigation RJ Sigurdson, this campaign will remind Albertans of their options for local food and the importance of supporting Alberta’s agriculture producers and processers.
“Alberta’s agriculture producers and processers are the best in the world. Although these U.S. tariffs are incredibly concerning, this “Buy Alberta” campaign will put a spotlight on Alberta’s farmers, ranchers and agri-food businesses and support Albertans in choosing goods from right here at home.”
Building on Alberta’s reputation as a leader in removing barriers to trade within Canada, Alberta’s government will continue to push other provinces to match our ambition in providing full labour mobility and eliminating trade barriers through work like mutual recognition of regulations. This will allow for goods, services and labour from other provinces to flow into and out of Alberta without having to undergo additional regulatory assessments.
“While no one wins in a tariff war, this situation underscores the need to develop Canada’s trade infrastructure and the diversification of our trading partners and could be the catalyst to unlocking Canada’s true potential. As we look at how best to support Albertans and our businesses, we must also work to reduce internal trade and labour mobility barriers while expanding markets for Alberta energy, agricultural and manufactured products into Europe, Asia, the Americas and beyond. Albertans and Canadians are counting on us.”
Alberta’s government is also focused on doubling oil production. With U.S. tariffs in place on Canadian energy products, Alberta is looking elsewhere for additional pipeline infrastructure, including east and west, in order to get our products to new markets.
Alberta’s government will continue to engage with elected officials and industry leaders in the U.S. to reverse these tariffs on Canadian goods and energy and rebuild Canada’s relationship with its largest trading partner and ally.
Quick facts
- On March 4, U.S. President Trump implemented a 25 per cent tariff on all Canadian goods and a 10 per cent tariff on Canadian energy.
- The U.S. is Alberta’s – and Canada’s – largest trading partner.
- Alberta is the second largest provincial exporter to the U.S. after Ontario.
- In 2024, Alberta’s exports to the U.S. totalled C$162.6 billion, accounting for 88.7 per cent of total provincial exports.
- Energy products accounted for approximately C$132.8 billion or 82.2 per cent of Alberta’s exports to the U.S. in 2024.
- About 10 per cent of liquor products in stock in Alberta are imported from the United States.
- U.S. products represent a small minority of the beer and refreshment beverage categories; however, a significant number of wines originate in the U.S.
- In 2023-24, about $292 million in U.S. liquor products were sold in Alberta.
- Alberta has been a longstanding supporter of reducing barriers to trade within Canada. In 2019, the province removed 21 of 27 exceptions, including all procurement exceptions, and narrowed the scope of two others. Since then, the province has only added 2 exceptions, which allow for the management the legalization of cannabis.
- Removing party-specific exemptions has helped facilitate even greater access to the Alberta market for Canadian companies in the areas of government tenders, Crown land acquisition, liquor, energy and forest products, among others.
Alberta
Securing the Alberta-U.S. border

Alberta’s border security plan is advancing rapidly with more measures in place to stop illegal activity at the Alberta-U.S. border.
In December 2024, Alberta’s government announced a $29-million investment to create an Interdiction Patrol Team (IPT) within the Alberta Sheriffs to crack down on illegal cross-border activities threatening lives and livelihoods on both sides of the Alberta-Montana border. Alberta’s government recognizes the need for swift and decisive action that will curb drug trafficking and illegal border crossings to strengthen the province’s border security.
The team’s first cohort has been deployed and hiring will continue until all 51 positions are filled. The IPT is now operational, working closely with the RCMP and Canada Border Services Agency to identify and apprehend individuals suspected of drug smuggling, human trafficking and other illegal activities involving movement across the Canada-U.S. border. To date, 20 members of the Alberta Sheriffs have been assigned to the IPT to patrol between entry points, and to vehicle inspection stations along Alberta’s side of the border.
Sheriffs Interdiction Patrol Team map
“We are committed to strengthening security along Alberta’s southern border to put an end to the dangerous criminal activities that are destroying lives on both sides of the border. In addition to launching our new Interdiction Patrol Team, we are building three new vehicle inspection stations and increasing highway monitoring for suspicious activity. Our plan will ensure that Alberta’s southern border is secure.”
“Alberta’s government is increasing border security and has zero tolerance for illegal activities that threaten the well-being of Albertans or Alberta’s economy. The Alberta Sheriffs Interdiction Patrol Team puts more boots on the ground to identify where and when these activities are taking place, boosting security along our southern border and disrupting dangerous cross-border human, drugs and weapons trafficking in both directions. Let this be a message to all potential traffickers, especially those who traffic deadly fentanyl, you will get caught and you will go to jail.”
Alberta’s government continues to acquire equipment that will enable the IPT to detect and apprehend individuals committing illegal activity, including drones, night-vision optics and patrol canines. This team will patrol to detect and intercept illicit drugs, illegal firearms and unlawful attempts at illegal international border crossing. The IPT will be fully operational in coming months.
Through this process, Alberta has identified further significant concerns with the shared Canada-U.S. border. In response, Alberta’s government is advancing further measures to increase the security of the southern border.
In addition to the IPT, Alberta Transportation and Economic Corridors is dedicating $15 million over two years for three new vehicle inspection stations near the border, if Budget 2025 passes. This will give Sheriffs dedicated facilities to inspect commercial vehicles, whether they’re crossing into the United States or coming into Canada. The stations will be located on Highway 1 at Dunmore, Highway 3 at Burmis and Highway 4 at Coutts. The stations will include enhanced parking lanes for inspections, and winter ready buildings for year-round inspections.
Another measure undertaken by Alberta’s government is to train highway maintenance workers to identify and report suspicious activity during highway maintenance operations. Volker Stevin has a contract to maintain about 600 kilometres of highways in southern Alberta and by empowering their workers to identify and report suspicious activity, Alberta’s government is layering further security measures without adding additional costs.
“Border security is a priority, and Alberta Transportation and Economic Corridors is doing its part to enhance security and surveillance through three new vehicle inspection stations and with the help of our highway maintenance contractors, who will be trained to detect and report suspicious activity, providing an extra pair of eyes along the border.”
“The Interdiction Patrol Team will play a key role in eradicating crimes that seek to exploit the Alberta-Montana border in both directions. The Alberta Sheriffs are pleased to collaborate with the RCMP, Canada Border Services Agency and our counterparts in the United States as we work to keep our shared border safe and secure.”
Alberta’s government also amended the Critical Infrastructure Defence Regulation in January 2025 to add a two-kilometre-deep border zone north of the Alberta-United States border to the definition of essential infrastructure under the Critical Infrastructure Defence Act. The act gives peace officers the authority to arrest individuals caught trespassing on, interfering with or damaging essential infrastructure and who do not have a lawful right, to be on the essential infrastructure.
“Amending the Critical Infrastructure Defence Regulation is a key piece of our efforts to strengthen security in the area near the international border. We have quickly taken action that will support law enforcement in improving public safety, and tackle cross-border crime, drugs, illegal migrants and human-trafficking.”
Quick facts:
IPT will be supported by:
- 51 uniformed officers equipped with carbine rifles (weapons for tactical operations)
- 10 support staff, including dispatchers and analysts
- four drug patrol dogs, critical to ensure reasonable suspicion to search vehicles
- 10 cold weather surveillance drones that can operate in high winds with dedicated pilots
- four narcotics analyzers to test for illicit drugs
The IPT has already conducted more than 3,300 stops/contacts and has been successful in:
- assisting with four Northbound unauthorized border crossings
- executing 18 warrants and conducting two Judicial Interim Release hearings
- conducting three arrests related to possession of cocaine for the purpose of trafficking
Related news
- A plan to secure Alberta’s southern border (Dec. 12, 2024)
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