Plugging Louisiana's 4,300 'orphaned' wells could boost industry, cut emissions - GoHaynesvilleShale.com2024-03-29T10:33:44Zhttps://gohaynesvilleshale.com/forum/topics/plugging-louisiana-s-4-300-orphaned-wells-could-boost-industry?feed=yes&xn_auth=noThe more I consider the possi…tag:gohaynesvilleshale.com,2020-07-30:2117179:Comment:39169332020-07-30T14:51:05.780ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>The more I consider the possibility of Louisiana following ND's example, the more I think it may be a reasonable option. Before being fully in support, I think we would all have to see where the state's needs lie in regard to mitigating the virus impacts and how far the CARES FUNDS would go. For those who find it offensive that oil companies would pass the bill for proper plugging and abandoning old wells to the public (a natural reaction, it's our tax dollars), I would put the following…</p>
<p>The more I consider the possibility of Louisiana following ND's example, the more I think it may be a reasonable option. Before being fully in support, I think we would all have to see where the state's needs lie in regard to mitigating the virus impacts and how far the CARES FUNDS would go. For those who find it offensive that oil companies would pass the bill for proper plugging and abandoning old wells to the public (a natural reaction, it's our tax dollars), I would put the following questions: Is it better to pay now and solve a problem that is growing beyond the state's ability to keep the annual orphan well count from increasing? For those who are supportive of the state operators (not necessarily the majors or super-major oil companies who work offshore federal waters but the average private LA oil operator) wouldn't this be more equitable and less damaging to state revenue than a lowering of or a moratorium on the severance tax or reducing the existing fee structure? Wouldn't the jobs created by such a program be a tangible benefit at a time when so many skilled oil field workers are being laid off? Wouldn't there be environmental benefits and a means to avoid considerable future costs when orphan wells caused serious pollution problems?</p>
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<p><strong>North Dakota to spend $66 million to plug abandoned wells</strong></p>
<p>July 29, 2020</p>
<p>(Reuters) - North Dakota plans to spend $66 million to plug wells abandoned by oil and gas companies in the U.S. state after the pandemic crushed demand for crude, causing a plunge in prices.</p>
<p>The $66 million has come from the Federal Coronavirus Aid, Relief, and Economic Security (CARES) Act, said Katie Haarsager, a spokeswoman for the North Dakota Oil and Gas Division, which is undertaking the project.</p>
<p>The move is expected to create jobs and keep some of the oilfield services companies at work in the second-largest oil producing state, as energy-related revenues plummet.</p>
<p>Well plugging is expected to sustain more than 600 oil and gas service sector jobs with 300 to 500 additional jobs managing reclamation of the sites, a statement <a href="https://www.dmr.nd.gov/oilgas/pressreleases/Oil_and_Gas_Division_Three-Part_Education_Series_on_Well_Plugging_and_Reclamation.pdf">here</a> from North Dakota's Department of Mineral Resources said.</p>
<p>The impact of the virus and trade war on the state’s key industries of energy and agriculture could ripple through its budget for years through cuts to education, government and highway services.</p>
<p>Reporting by Shradha Singh in Bengaluru; Editing by Shinjini Ganguli</p>