unplugged wells
Newsletter
Credit: J. G. Domke/Big Stock Photo
California Resources Corporation faces scrutiny over oil well cleanup compliance
California's new law requires oil companies to secure funds to plug wells before acquiring them, but California Resources Corporation's merger with Aera Energy raises concerns about compliance.
In short:
- California Resources Corporation plans to acquire Aera Energy but hasn't confirmed compliance with a law mandating funds to plug oil wells.
- The merger could leave taxpayers responsible for billions in cleanup costs if the law isn't enforced.
- California Resources Corporation previously filed for bankruptcy, raising concerns about its financial stability.
Key quote:
“It’s quite frustrating to those of us who have worked very hard to try and help California dig out of the colossal mess that it is in.”
— Ann Alexander, director of Energy Solutions, Nature, NRDC
Why this matters:
Unplugged wells can release toxic chemicals and greenhouse gases, contributing to air and water pollution and climate change. By ensuring that companies have the financial resources to plug these wells, California is attempting to safeguard its environment and public health. However, the sheer scale of the CRC-Aera merger complicates matters. Both companies have extensive portfolios of aging wells, and the financial burden of plugging them could be substantial.
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Newsletter
Texas struggles with backlog of unplugged wells despite aggressive plugging program
Texas, known for its vast oil reserves and long history of drilling, is now facing a less glamorous legacy: the highest number of unplugged wells in the United States.
In short:
- Texas has 476,790 documented unplugged wells, including 8,580 orphaned wells.
- The Bipartisan Infrastructure Law provides $4.7 billion for well plugging, with Texas receiving $25 million initially.
- Despite plugging over 1,500 wells annually, Texas's orphan well list remains lengthy due to ongoing discoveries and undocumented wells.
Key quote:
“Right now the Railroad Commission estimates that we have almost 8,000 orphan wells that need to be plugged in the state of Texas.”
— Rep. Brooks Landgraf, an oil and gas attorney who represents the city of Odessa and chairs the Texas House Environmental Regulation Committee
Why this matters:
Unplugged wells, sometimes referred to as orphan wells, are those left behind after their productive life has ended. Without proper sealing, these wells can become conduits for toxic substances like methane and brine to contaminate local ecosystems. The environmental impact is significant, with risks ranging from groundwater pollution to air quality degradation. Methane, a potent greenhouse gas, can escape from these wells, exacerbating climate change.
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