Orphan Wells
An operator is legally responsible for assuring environmental safety at an active site, he must monitor the confined space for as long as they can–even after all the wells have been plugged and abandoned.
But what happens when the market takes a downturn or an operator goes bankrupt and potentially ceases to exist before the well is plugged and abandoned? If a review finds there are no boomerang assets, the well is then filed under the “orphan” category and becomes the responsibility of the state. The state must then follow a procurement policy to award a contract to an abandonment expert that will securely, and properly, plug the well.
Millions of Abandoned Wells
According to the EPA, there are millions of wells across the United States in various states of “abandonment” – from those that have been properly plugged to those with no recent production that fall under the “orphaned” category and have yet to be plugged.
While there are countless articles that focus on the financial and environmental impact of methane emissions from unplugged or improperly plugged wells, it’s not all doom and gloom. For over a year there have been talks about a federally funded program that could put displaced oilfield workers back to work plugging abandoned wells. Industry leaders have likened this potential effort to FDR’s “New Deal” and could be a win-win for the oilfield industry and individual states if a federally funded solution is implemented.
Life After Well Abandonment
Lands that were once used for hydrocarbon extraction can eventually be put back into public use. With the use of effective and advanced barrier sealant techniques, there’s no reason why sites that were home to orphaned wells couldn’t become home to new development projects and green spaces.