Abandoned wells in US spark call for drilling rights ban

AmericasOffshore
Healthy Gulf

Environmental groups have petitioned the US government to prevent energy companies that neglect old well sites from getting new offshore drilling rights.

The petition was signed by the Centre for Biological Diversity, Bayou City Waterkeeper, Healthy Gulf, Louisiana Bucket Brigade, and the Turtle Island Restoration Network. They made it clear that timely decommissioning is a due diligence requirement under the Outer Continental Shelf Lands Act.

The petitioners said in the document that the decades-old infrastructure topples into the water, exposing wildlife to oil, chemicals, methane, and heavy metals. They also pointed to unplugged wells, which tend to spew oil due to blowouts. Just this April, an 82-year-old unplugged well in Louisiana’s marshes leaked nearly 650,000 litres of oil after a blowout.

“The federal government has allowed the oil and gas industry to use the ocean as its junkyard,” the petition claimed.

Decommissioning is a massive problem in US waters, as there are more than 2,700 wells and 500 platforms overdue for decommissioning in the Gulf of Mexico and around 100 unused wells requiring permanent plugging in the Pacific.

These are the most recent verified figures. However, the number may be bigger as the records are from 2023.

One of the biggest reasons for that is the price tag. According to the US Bureau of Safety and Environmental Enforcement, well-plugging in the Gulf of Mexico ranges between $660,000 in shallow waters and $24m in deep waters. Platform removals can cost between $900,000 and $80m, depending on water depth.

“No one wants to see these wells rust and fall into the ocean like they do. Fossil fuel companies walk away from their messes, and it’s our people who pay the price in lost income, polluted waters, and public health risks,” said Scott Eustis, community science director for Healthy Gulf.

The groups stated that large companies often sell drill sites nearing the end of their useful life to smaller companies. Smaller companies often declare bankruptcy, leaving the government to foot the decommissioning bill.

“Using taxpayer dollars to plug wells the oil and gas industry has abandoned is the definition of avoidable government waste,” added Rachel Mathews, senior attorney with the Centre for Biological Diversity.

About Stu Turley 4813 Articles
Stuart Turley is President and CEO of Sandstone Group, a top energy data, and finance consultancy working with companies all throughout the energy value chain. Sandstone helps both small and large-cap energy companies to develop customized applications and manage data workflows/integration throughout the entire business. With experience implementing enterprise networks, supercomputers, and cellular tower solutions, Sandstone has become a trusted source and advisor.   He is also the Executive Publisher of www.energynewsbeat.com, the best source for 24/7 energy news coverage, and is the Co-Host of the energy news video and Podcast Energy News Beat. Energy should be used to elevate humanity out of poverty. Let's use all forms of energy with the least impact on the environment while being sustainable without printing money. Stu is also a co-host on the 3 Podcasters Walk into A Bar podcast with David Blackmon, and Rey Trevino. Stuart is guided by over 30 years of business management experience, having successfully built and help sell multiple small and medium businesses while consulting for numerous Fortune 500 companies. He holds a B.A in Business Administration from Oklahoma State and an MBA from Oklahoma City University.