Alberta’s self-anointed “Gas City” is turning off the taps of more than 2,000 producing wells due to weak market conditions, the Daily Oil Bulletin reports.
After an extensive four-year process to find efficiencies and new opportunities in a depressed oil and gas market, the City of Medicine Hat has decided to accelerate abandonment and reclamation of uneconomic gas fields.
“We’ll always be the Gas City. It’s an integral piece of our history, and the City’s oil and gas accomplishments will leave a lasting legacy for generations,” said Brad Maynes, commissioner of energy and utilities.
“Over the past 40 years, the City’s oil and gas assets provided over $600 million to the city coffers. We can’t overlook that success.”
The decision to roll back activity was not taken lightly by city officials.
“We have worked hard for years to make the division profitable again, but this is a market phenomenon happening across North America — this is the new normal,” Maynes said.
Residential and business gas supply will not be affected by these decisions, and steps are being taken to ensure a continued flow of supply for decades to come, the city said.