This extended abstract provides an overview of the environmental liabilities of oil and gas assets, asset retirement obligations (AROs) and environmental reporting requirements under the regulatory regimes in Alberta, in Canada and International Financial Reporting Standards (IFRS). Lifecycle asset liability and environmental management processes are associated with abandonment, remediation and reclamation, decommissioning and closure. Alberta’s production of conventional oil and gas and oil sands projects has resulted in increased concerns related to climate changes and environmental liabilities of oilfield assets. More stringent regulatory compliance and standards have been developed and are likely to continue. Operators are responsible for the costs to comply with environmental regulations and take sufficient social responsibilities. The industrial experience of discharging liabilities has indicated that planning at early stages of the operation and managing asset liability bring a reduced cost and risk. Full lifecycle cost-effective and efficient environmental management begins with planning and successful acquisition. The best estimate calculation can be based on internal or external costs, depending on which is most likely.


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