Cost of cleaning up orphaned oil and gas wells in Alberta, Saskatchewan to reach $1B by 2025

The parliamentary budget officer has found the cost of cleaning up orphaned oil and gas wells in Alberta and Saskatchewan already dwarfs the money collected to pay for it.

And in a report released Tuesday morning, Yves Giroux says the price tag will reach more than $1 billion by 2025.

Security deposits collected for the cleanup total $237 million.

Orphan wells are oil and gas wells abandoned by bankrupt companies, with no owners to remediate the sites.

Click to play video: 'Insolvency leads to 5 times as many orphan wells to seal in Saskatchewan' Insolvency leads to 5 times as many orphan wells to seal in Saskatchewan

Insolvency leads to 5 times as many orphan wells to seal in Saskatchewan – Jun 28, 2021

Giroux says more than half the $1.7 billion granted by Ottawa for the cleanup was given to viable companies.

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Giroux’s figures don’t include the oilsands.

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