The U.S. Department of the Interior in August advanced $775 million in federal grants to 21 energy-producing states to boost efforts to clean up shut-in or abandoned oil and gas wells that have no one responsible and can environmental risks. The latest funding in the 2021 infrastructure law will expand work to reduce methane leaks and risks to surface and groundwater.
Texas is eligible for the largest amount, $318 million, followed by Pennsylvania, $305 million; Ohio, $231 million; Oklahoma, $205 million; California, $141 million and West Virginia, $117 million. More than $1 billion in funding has been used to repair about 8,000 identified orphan wells, Interior said.
85%
Proportion of 1,000 green or blue hydrogen production projects announced since 2015 that do not have final investment decisions
Source: McKinsey, 2024
The Interstate Oil and Gas Compact Commission, a 38-member U.S.-Canada energy conservation group, said that despite ongoing work, by Dec. 31, 2023, the number of orphan wells documented in 29 responding states increased 54% since 2020 to nearly 142,000. It also noted 1.6 million drilled and disconnected wells in those states, also more than in 2020. The group linked the recent increases largely to better state documentation of orphan well owners and operators and “the existence, condition and location of wells through field inspection and drones.” surveillance”.
Eligible states have until Dec. 13 to apply for the funds, which require them to measure methane emissions from clogged wells, track impacts to water sources and involve communities in cleanup efforts. The agency’s guidance also “encourages” states to use project labor agreements.
A spokeswoman for the state of Texas says it will “review the requirements” before deciding whether to apply for funding. Wyoming, the nation’s seventh-largest oil-producing state, has declined to apply for new funding, despite being eligible for $35 million. “We do not agree with several conditions placed on the grant by [Interior]and they believe these conditions do not follow the language of the law,” says Tom Kropatsch, supervisor of the Wyoming Oil and Gas Conservation Commission. “We will continue to evaluate the requirements … in future phases.” The state has a program well connected, he says, financed by lost bonds and a tax on the conservation of energy producers.
Congress appropriated a total of $4.7 billion in the Orphan Well Cleanup Act, including $300 million for work on public and tribal lands.
The Upset LNG project is seeking a final expansion
Photo courtesy of Golden Pass LNG
Citing on-site unrest this year that led to layoffs, cost overruns, delays and the departure of prime contractor Zachry Group, the owners of the Golden Pass LNG export terminal under construction in Texas since 2019 asked to the Federal Energy Regulatory Commission in August. 30 to approve a three-year extension to November 2029 to finish the estimated $11 billion, three-unit megaproject that will produce 18 million metric tons per year. The additional time “will allow for the hiring and remobilization of more than 4,000 skilled workers and provides for potential schedule uncertainties,” the filing from owners ExxonMobil and Qatar Energy said. Golden Pass said its “target is to produce first LNG around the end of 2025 and then commercial operations.” Zachry filed for bankruptcy in May in a dispute over $2.4 billion in cost overruns, replaced by his former joint venture partners McDermott International and Chiyoda. body Work on the three gas processing units is 83%, 46% and 31% complete, respectively, according to the Golden Pass filing. —Debra K. Rubin
