The number of inactive oil wells in Saskatchewan has fallen for the second year in a row, thanks to the province's Inactive Liability Reduction Program (ILRP), according to the Ministry of Energy and Resources.
As of January 2025, there were 1,083 fewer inactive wells in the province compared to when the ILRP was first introduced in 2023. The program, designed to ensure the responsible closure of inactive oil and gas sites, is part of Saskatchewan’s broader strategy to regulate the sector while minimizing taxpayer risk.
"In addition to responsibly developing Saskatchewan's natural resources, our ministry is the provincial oil and gas regulator, a role we take extremely seriously," said Energy and Resources Minister Colleen Young. "The ILRP shows how we regulate the sector in a way that shields taxpayers from liability risks, protects the environment and facilitates growth. We are fortunate to have reliable oil producers in our province who ensure they are investing in responsible and sustainable resource development."
Under the ILRP, oil producers are required to meet spending targets to manage and decommission inactive wells and facilities. In 2024, companies spent more than $228 million on these efforts, nearly double the ministry’s target of $116 million.
Lisa Baiton, President and CEO of the Canadian Association of Petroleum Producers, praised the initiative for helping industry players reduce their environmental footprint.
“Saskatchewan's oil and natural gas producers continuously strive to lower the environmental footprint of their operations, and the ILRP enables industry to manage facilities through the final stage of the project lifecycle,” Baiton said. “Reducing the number of inactive wells and facilities in the province is an incredibly important responsibility for oil and gas producers, and their commitment to the program was demonstrated by the industry nearly doubling the ministry's funding target.”
The ILRP builds on other clean-up initiatives overseen by the Ministry of Energy and Resources. Since 2010, the Saskatchewan Oil and Gas Orphan Fund has used industry-funded contractors to decommission orphaned facilities. The now-completed Accelerated Site Closure Program, which ended in 2023, distributed $400 million in federal funding to clean up nearly 10,000 oil wells and thousands of related sites across the province.
The ministry says these efforts reflect Saskatchewan's ongoing commitment to responsible energy development and environmental stewardship.