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The Big Shortfall

Canada’s largest oil and gas producers may be understating their decommissioning liabilities by billions of dollars, potentially exposing their investors’ portfolios. Through the use of high discount rates and extended asset-life assumptions, reported liabilities can appear a fraction of what more realistic accounting would reveal. 

We have documented these gaps in a comprehensive analysis of Canada’s largest upstream producers, with a recent update confirming no meaningful progress in the industry’s 2025 financials.

As the issue can be complex (and to some, perhaps, a tad boring?) we asked Canadian comedian Colin Mochrie to help cut through the complexity. The issue is serious. The explainer is not.

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