• Sign up for the Daily Digest E-mail
  • Facebook
  • Twitter
  • LinkedIn

BOE Report

Sign up
  • Home
  • Headlines
    • Latest Headlines
    • Columns
    • Discussions
  • Well Activity Map
  • Property Listings
  • Land Sales
  • M&A Activity
    • M&A Database
    • AER Transfers
  • Markets
  • Rig Counts
    • CAODC Rig Count
    • Baker Hughes Rig Count
    • USA Rig Count
  • Industry Data
    • Canada Well Licences
    • USA Market Data
    • Data Subscription
  • Jobs

XI Technologies: Reclamations in the WCSB: looking at the past six months

September 30, 20204:57 AM XI Technologies

Each week, XI Technologies scans its unique combination of enhanced industry data to provide trends and insights that have value for professionals doing business in the WCSB. If you’d like to receive our Wednesday Word to the Wise in your inbox, subscribe here.

A month ago, we took a look at the state of liabilities in the WCSB and how they’ve improved since January. This week, we wanted to take a deeper look at one part of that equation and examine the reclamation work being done in Western Canada (specifically Alberta, Saskatchewan, and British Columbia). Reclamation work is some of the most important liability work environmentally, as it signifies the land is ready to return to its previous state — the subsoil has been recontoured, the topsoil replaced, the vegetation re-established. It’s important to recognize that despite the challenges facing the oil and gas industry, our industry is fulfilling its environmental commitments.

To do so, we’ll examine the past six months of reclamations in Alberta, Saskatchewan, and British Columbia (data from Manitoba was not available). This data is based on the license status change for a site, which is to say that it’s not necessarily reflective on when the work was done, but when the status changed according to the regulators (i.e., when the site has officially been “reclaimed”).

Reclamations in Western Canada

Above are the total reclamations in the past six months, broken down by province. We’ve supplied values for these reclamations, both using an LLR cost model based on the regulator cost models and XI’s cost model — the latter considers many real-word factors left out of the LLR model. For a look at five major differences between XI’s proprietary third-party cost model and regulator LMR costs, download this case study. The biggest difference noted here is due to regulators understating reclamation costs, and not factoring in remediation costs.

Using XI’s cost model, you see that operators in these western Canadian provinces took an estimated $57 million off their books in the past six months, reclaiming 1246 well sites.

The chart above details which operators were most active in the past six months in terms of reclamations.

With the exception of recent regulations from BC, there haven’t been consistent site closure mandates across the WSCB jurisdictions. From a liability standpoint, inactive sites that have not been properly remediated and reclaimed are an area of concern to the public. These numbers serve as evidence that operators with means are serious about tackling reclamations to both reduce their on-paper ARO and meet Environmental, Social & Governance (ESG) responsibilities despite the lack of governmental mandate.

This data was calculated using XI’s liability software module, AssetBook ARO Manager. ARO Manager is the only standardized tool for estimating and monitoring asset retirement obligations in Western Canada’s oil and gas sector. To learn how XI’s ARO Manager can help with the planning and reporting of liability management, visit our website or contact us for a demo.

Follow the BOE Report
  • Facebook
  • Twitter
  • LinkedIn
Sign up for the BOE Report Daily Digest E-mail
Latest Headlines
  • Oil rises after data shows slump in U.S. output amid Texas freeze
  • Trans Mountain seeks to shield insurers from pressure
  • Higher oil prices boosting Alberta’s bottom line as budget looms
  • Crescent Point announces 2020 results and reserves
  • XI Technologies: M&A Snapshot – ARC Resources Ltd and Seven Generations Energy Ltd

Return to Home
Alberta Gas
CAD/GJ
Market Data by TradingView





    Note: The page you are currently on will be sent with your report. If this report is about a different page, please specify.

    About
    • About BOEReport.com
    • In the News
    • Terms of Use
    • Privacy Policy
    Resources
    • App
    • Widgets
    • Notifications
    • Daily Digest E-mail
    Get In Touch
    • Advertise
    • Post a Job
    • Contribute
    • Contact
    • Report Error
    Featured In
    • CamTrader
    • Rigger Talk
    Data Partner
    • Foxterra
    BOE Network
    © 2021 Grobes Media Inc.