There are roughly 2mn unplugged oil and gas wells in the US
Crediting emissions saved in plugging oil and gas wells
Avoided emissions could be credited as carbon offsets and sold on exchanges
Funds totalling $21bn have been allocated in the US’ recently passed Infrastructure Investment and Jobs Act to clean up former industrial and energy sites, including properly retiring some of the estimated 2mn of unplugged abandoned oil and gas (O&G) wells in the US. Those funds can be stretched further if the avoided methane is credited as carbon offsets and sold on carbon exchanges. Using a reference well from Pennsylvania and recent carbon offset pricing from one voluntary exchange, such a system of credits could generate 10-15pc of the well’s estimated plugging cost. Unplugged abandoned wells collectively are modest relative emitters of greenhouse gases (GHGs), contributing less than
Also in this section
19 December 2024
The utility-scale battery energy storage system market is evolving rapidly, with diverse offtake models emerging to offer bespoke, flexible contracting solutions
13 December 2024
Prices in world’s largest compliance market have risen this year but remain below those seen in the EU
11 December 2024
Policymakers need to step up with a long-term, global strategy if the energy transition is ever to be a success
11 December 2024
CCUS and other carbon management technologies are gaining traction around the world, but heightened policy risk and other pressures will make 2025 a challenging year in some regions
