WASHINGTON—Two U.S. senators introduced a bipartisan bill on April 13 to provide billions of dollars to plug oil and gas wells, nearly the level in President Joe Biden’s infrastructure plan, to provide jobs and cut emissions of a potent greenhouse gas.
More than a century of U.S. oil and gas drilling has left behind millions of abandoned wells, many of which are emitting methane into the atmosphere. Some wells also pollute waterways. Oil and gas companies are likely to abandon many more wells as renewable energy eats into demand for fossil fuels.
The Revive Economic Growth and Reclaim Orphaned Wells (REGROW) legislation, introduced by Ben Ray Luján (D-N.M.) and Kevin Cramer (R-N.D.), would provide $4.275 billion for orphaned well cleanup on state and private lands, $400 million for orphaned well cleanup on public and tribal lands, and $32 million for research and development.
Biden’s $2.3 trillion infrastructure plan urges Congress to pass $8 billion for plugging wells and $8 billion for reclaiming coal and uranium mines. The work would also create jobs in regions hurting amid the energy transition.
The senators said the oil and gas industry had lost more than 100,000 jobs since the beginning of the coronavirus pandemic. The bill “will put New Mexicans back to work while safeguarding our environment and reducing harmful air pollution,” Luján said, adding there are 700 orphaned wells in his state alone.
Pennsylvania, where the U.S. oil industry began, also has a lot of orphaned wells.
Legislation introduced last week by Rep. Teresa Leger Fernandez (D-N.M.), would provide the full $8 billion for plugging oil and gas wells.
Recommended Reading
Steelhead Seeks Damages from Pembina, ARC Resources, Cedar LNG
2024-12-24 - Steelhead LNG said it has filed legal proceedings against Cedar LNG, Pembina Pipeline Corp. and ARC Resources related to improperly exploited information, Steelhead said.
Woodside Pushes Louisiana LNG Project Forward with Bechtel Contract
2024-12-05 - Woodside Energy signed a revised engineering, procurement and construction contract with Bechtel, which had already performed work on the project when it was still owned by Tellurian.
Analysts: Trump’s Policies Could Bring LNG ‘Golden Era’ or Glut
2024-11-27 - Rystad warns that too many new LNG facilities could spell a glut for export markets.
Mexico Pacific’s Saguaro: LNG’s Quicker Route to Asian Markets
2024-11-19 - Mexico Pacific’s 30-mtpa Saguaro LNG terminal promises a connection to Asia for Permian Gas that avoids the Panama Canal.
DOE Report on LNG Pause Climate to Arrive Before January
2024-12-08 - The White House said it implemented a permit pause on export facilities to allow time for an analysis of LNG climate impacts.