1. Homepage
  2. Equities
  3. Canada
  4. Toronto Stock Exchange
  5. Canadian Natural Resources Limited
  6. News
  7. Summary
    CNQ   CA1363851017

CANADIAN NATURAL RESOURCES LIMITED

(CNQ)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Canada watchdog says funds for inactive oil well clean-up may fall short

01/25/2022 | 09:32am EDT

(Adds Cenovus comment)

CALGARY, Alberta/OTTAWA, Jan 25 (Reuters) - Funds allocated by the Canadian government to help clean up the country's orphan oil and gas wells may fall short if the main oil-producing province of Alberta continues to allocate the money to financially viable companies, the parliamentary budgetary watchdog said on Tuesday.

About half the funds in Alberta went to 10 companies that are expected to remain financially viable over the next few years, including some of Canada's largest energy producers - Canadian Natural Resources Ltd, Imperial Oil, and Cenovus Energy, budgetary officials said. All have benefited from surging oil prices in recent months.

Canada is the world's fourth-largest oil producer and sixth-largest natural gas producer and its western provinces are dotted with hundreds of thousands of oil and gas wells. Some of those wells are orphans, meaning the companies that owned them have gone bankrupt or ceased to exist.

In April 2020, the federal Liberal government allocated C$1.7 billion ($1.3 billion) to clean inactive oil and gas wells.

There are approximately 225,000 inactive and plugged wells in Alberta and Saskatchewan, the two largest energy-producing provinces. Around 11,000 are orphans and the watchdog estimates the clean-up cost for those wells will reach C$1.1 billion by 2025.

While the amount set aside by Ottawa should be enough to cover the orphan well clean-up cost, Parliamentary Budget Officer Yves Giroux warned the funding could fall short if Alberta continued to allocate federal money to firms that are not in financial trouble.

"If that trend continues, it's possible that the funding set aside would not be sufficient to clean up all of the inactive orphan wells into the future," Giroux told a conference call.

Canada has a "polluter pays" principal, in which the companies that extract natural resources are expected to set aside funds to cover the cost of clean-up.

Giroux noted the federal funding was set up to clean up inactive wells, not necessarily orphan wells, and it was up to Alberta to determine which companies received funding.

Alberta government spokesperson Jennifer Henshaw said the funds went directly to oilfield services companies specializing in well clean-up, rather than the well licensees.

"The program has accelerated the cleaning up of inactive sites and has created more than 1,900 jobs," Henshaw added.

A Cenovus spokesperson said in a statement the company had accessed Alberta's site rehabilitation program during the economic downturn in 2020, and would continue doing so until its completion this year.

Canadian Natural and Imperial did not immediately respond to request for comment. ($1 = 1.2639 Canadian dollars) (Reporting by David Ljunggren Editing by Mark Potter, Marguerita Choy, Bernard Orr and Aurora Ellis)


© Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
CANADIAN NATURAL RESOURCES LIMITED 1.02% 83.3 Delayed Quote.54.28%
CENOVUS ENERGY INC. 1.23% 28.09 Delayed Quote.78.92%
IMPERIAL OIL LIMITED 1.81% 68.67 Delayed Quote.47.85%
LONDON BRENT OIL 0.32% 114.37 Delayed Quote.45.50%
S&P GSCI NATURAL GAS INDEX 1.78% 421.0601 Real-time Quote.136.89%
WTI 0.25% 110.743 Delayed Quote.45.58%
All news about CANADIAN NATURAL RESOURCES LIMITED
04:38pPetrus Resources Appoints Matt Skanderup as COO, Mathew Wong as CFO; Provides Monthly A..
MT
02:50pWTI Crude Ends Higher on a Report Showing US Gasoline Inventories Fell Last Week
MT
02:39pJuly WTI Crude Oil Contract Closes Up US$0.56; Settles at US$110.33 per Barrel
MT
09:30aNatural Gas Touches a 14-Year High on Heat, Export Demand
MT
08:54aOil Rises on Report Showing US Gasoline Inventories Fell to the Lowest in Eight Years L..
MT
05/24WTI Oil Edges Down as Market Balanced Between Higher US Gasoline Demand and Weak Import..
MT
05/24July WTI Crude Oil Contract Closes Down US$0.52; Settles at US$109.77 per Barrel
MT
05/24Natural Gas Edges Down After Monday's Surge Amid Expectations for Hot Weather
MT
05/24Oil Edges Up as Market Balanced Between Higher US Gasoline Demand and Weak Imports for ..
MT
05/24CRUDE BRIEF : NY Crude Up Near 0.4% at About US$110.70
MT
More news
Analyst Recommendations on CANADIAN NATURAL RESOURCES LIMITED
More recommendations
Financials
Sales 2022 40 820 M 31 812 M 31 812 M
Net income 2022 13 025 M 10 151 M 10 151 M
Net Debt 2022 9 254 M 7 212 M 7 212 M
P/E ratio 2022 7,34x
Yield 2022 3,44%
Capitalization 96 156 M 74 935 M 74 935 M
EV / Sales 2022 2,58x
EV / Sales 2023 2,76x
Nbr of Employees 9 735
Free-Float 98,5%
Chart CANADIAN NATURAL RESOURCES LIMITED
Duration : Period :
Canadian Natural Resources Limited Technical Analysis Chart | CNQ | CA1363851017 | MarketScreener
Technical analysis trends CANADIAN NATURAL RESOURCES LIMITED
Short TermMid-TermLong Term
TrendsNeutralBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 22
Last Close Price 83,30 CAD
Average target price 91,62 CAD
Spread / Average Target 9,99%
EPS Revisions
Managers and Directors
Tim Shawn McKay President, Chief Operating Officer & Director
Mark A. Stainthorpe Chief Financial Officer & Senior VP-Finance
Norman Murray Edwards Executive Chairman
Stephen C. Suche Vice President-Information & Corporate Services
David Arnold Tuer Independent Director
Sector and Competitors
1st jan.Capi. (M$)
CANADIAN NATURAL RESOURCES LIMITED54.28%74 025
CONOCOPHILLIPS51.68%138 936
EOG RESOURCES, INC.45.50%75 703
CNOOC LIMITED39.73%67 535
PIONEER NATURAL RESOURCES COMPANY49.14%65 631
OCCIDENTAL PETROLEUM CORPORATION125.66%60 983