Alberta government to spend $50 million on Alberta Drilling Accelerator

The Alberta government said it will be spending up to $50 million to support the Alberta Drilling Accelerator (ADA). Alberta Premier Danielle Smith confirmed this funding will create an open access test site, enabling organizations to test out innovative approaches to drilling. “Now obviously this means big things for oil and gas exploration in our province, but drilling is required for other parts of Alberta’s economy too, including industries that will be vital for achieving our goal of carbon neutrality by 2050 like carbon sequestration or geothermal energy, which has the potential to be the next frontier in Alberta energy,” said Smith at a Monday press conference. “Drilling is also a key element of mining activities like critical mineral extraction and our province’s growing helium industry.” By providing a test site for new drilling techniques, Smith said the Alberta government will “be expanding our already vast knowledge base and keeping Alberta outfront as a preferred global energy provider and supporting the development of technology the world desperately needs to support its sustainability goals.” She added the ADA will support the Alberta government’s long-term goals for the economy. Twenty to 30 years from now, she said it envisions operators being able to scale and sell their expertise by developing and manufacturing drilling technology that can be used around the world. She pointed out it was setting the stage for innovation and prosperity far into the future. She said the Alberta government was not alone, as there was major interest in the ADA among industry leaders. This is because Eavor Technologies, Halliburton, and Tourmaline back it. While Eavor Technologies, Halliburton, and Tourmaline back it, she said they represent a small fraction of the drilling expertise in Alberta and a small sample of the potential users for the test site once it is completed. Along with the $50 million in spending, she predicted the ADA will attract tens of millions of dollars in private investment. Smith said the Alberta government cannot wait to get moving on the ADA and work with industry partners to push the province’s drilling expertise to places it has never been before. Alberta Environment and Protected Areas Minister Rebecca Schulz said the province does not believe the future of energy is an either or conversation. “That is what today’s announcement is all about,” said Schulz. “As the premier said, we’re taking another step forward, stepping up to answer the call of rising global energy demand.” Schulz said Canada’s first drilling accelerator is an industry-led initiative that will keep it at the forefront of energy technology. Whether it is geothermal, carbon capture, or hydrogen, these technologies require drilling. Alberta United Conservative Party MLA Andrew Boitchenko (Drayton Valley-Devon) started off the press conference by saying it was the discovery of oil at the site of the Canadian Energy Museum (CEM) that revealed the province’s potential as a future hub for global energy. “In 1947, our province’s most impressive oil reserves were unlocked, and the resulting boom in development transformed this area in our province and the rest of Canada,” said Boitchenko. “In the decades that have followed the discovery, our province has developed a breadth of talent, a skilled workforce, and a regulatory environment for energy and drilling that is the envy of much of the world.” Boitchenko said the CEM was a fitting spot for hosting the announcement about the ADA. With the ADA, he said it “will continue our province’s legacy as a leader in drilling innovations and allowing us to leverage our existing expertise to capitalize on global demand for new and more efficient geothermal technologies, establishing Alberta as a global hub and expert leader in this emerging energy sector.” Smith followed up by saying Alberta was not transitioning away from fossil fuels. “We’re transitioning to low emissions,” she said. “And so the kinds of technologies we’re looking at — carbon capture utilization and storage, direct energy capture.” By supplying the world with cleaner liquefied natural gas, she said it will reduce emissions. She said Alberta needs to have a broader view of energy security and affordability and emissions reduction looks like. The Canadian Association of Energy Contractors (CAOEC) said in 2023 the situation was looking positive for Canada’s oil drilling sector as it continues to rebound back to pre-pandemic levels..Canada’s drilling looking up after pandemic.The CAOEC said 250 rigs out of the Canada’s 439-strong drilling fleet was at work during the typical peak winter drilling season. It said each working rig generates about 220 direct and indirect jobs. Of those, a little more than half were drilling for oil, one-third for natural gas, and the balance were moving and setting up or drilling for energy such as helium and geothermal. About 80% of all drilling is in Alberta, with the balance almost split between British Columbia and Saskatchewan.

Alberta government to spend $50 million on Alberta Drilling Accelerator

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