Alberta well reclamation loan applauded by CAODC
The Canadian Association of Oilwell Drilling Contractors applauds the Alberta Government for extending a loan to the Orphan Well Association to speed up well reclamation and create jobs.
Canada's oil and gas service sector is in its sixth year of what will likely be regarded as the worst downturn in its history. Beginning in 2014 with a slide in commodity prices, a long stretch of poor policy decisions, cancelled infrastructure projects, misinformation, protests, blockades, and global uncertainty, has left oilfield service companies decimated.
"This loan will help CAODC members provide long-term work for employees and help encourage those who have left the industry to come back," explains CAODC President and CEO, Mark Scholz.
CAODC Service Rig members have had difficulty keeping rigs fully staffed due to intermittent work conditions over the past five years. A lack of steady employment has led to many former rig workers seeking careers outside of the industry, and in different parts of the country.
This $100 million loan, and improved processes such as the Alberta Energy Regulator's Area-Based Closure program, means operators will be able to plan longer-term, efficient reclamation programs.
"Our members have taken the brunt of the impact all the negativity and politicization of our industry has had on people and families," says Scholz. "We view this initiative as a win/win for Albertans because it puts oil and gas families back to work, and cleans up legacy wells to the highest standards, at no long-term cost to taxpayers."
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