New estimate pegs oil and gas liabilities at over $59 billion for western provinces

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XI Technologies Inc. recently performed an analysis of provincial oil and gas liabilities for Alberta, Saskatchewan, and British Columbia and the numbers might surprise some.

The analysis was performed by XI’s data specialists using the enhanced public data and tools available in their AssetBook ARO Manager software. Liability costs were based on all licenses in each province, excluding Alberta mined oilsands and Oilfield Waste Liability (OWL). Calculations were made using XI’s recently released 2019 ARO Cost Model, which reflects the current reality of abandonment and reclamation costs in each of the three provinces.

According to our data, total oil and gas asset retirement obligations (ARO) for Alberta wells and facilities (excluding mined oilsands and OWL) now totals $44,772,959,877. This number appears to corroborate with the AER’s most recent publicly stated estimate of $58.7 billion including mined oilsands and OWL, and discredits speculative estimates of $260 billion that appeared in media reports late last year.

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