Quote:
Originally Posted by Weitz
Yah the Sask program was set up much better. Alberta energy really dropped the ball. Was also much less money.
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As a fellow oilpatch guy this R* thing is gross and embarassing.
If this incentive is a go forward thing, I can see the point/kinda.
I started 20+ many years ago working for the orphan well program. This was absolutely a 100% foreseeable problem. Companies like Cenovus (BBS, or its predecessor) and more importantly CNRL would send very heavy handed letters (that was the way at the time) and I would be forced to remove language/things from Directive 13, G20, all that.
None of that really would have helped. Back 30 years ago Imperial sold a field in big valley with a couple hundred wells and a battery/plant to a dentist. A clear unloading of liabilities on to a ignorant person who ran it into the ground and went bankrupt. Now we have to clean up the stuff.
That is an example of why the orphan fund and LLR and deposits and all this came into effect.
How the hell did Lexin get those assets (2000+ wells), who the hell did Sequoia get those assets? It is 99.9% because they do not have anyone that has a clue.
But at the same time, you see this absolute moronic commentary "oil companies cannot pay for their liabilities". Company A goes under so CNRL has to pay? WTF? They have set up an orphan fund to pay for their ####ty bros.
Does Humptys need to pay Galaxie Diners employees salary when they go out of business. F No. Your neighbor three doors down doesn't pay for his reno, now you are on the hook.