Abandoned wells pose a global threat to the health of people and of ecosystems, but solutions do exist to curb this dangerous phenomenon.
Under the Trump administration’s January 2025 executive order “Unleashing American Energy”, $4.7 billion allocated under the Biden administration to help states plug abandoned or “orphaned” oil and gas wells was effectively frozen. This is a historically large sum, but not even close to the actual amount of money needed to make old wells in the US safe. The project has been deprioritized at the federal level and the future of those wells is now left to individual states and interested companies.
Global Threat, Led by the U.S.
When a well that is used for oil or gas production reaches a plateau in its production rate, typically a few years after initial exploitation, it enters into a decline phase with reduced output. The wells are ‘abandoned’ when companies deem that operation costs surpass revenue from production. Companies are contractually supposed to ‘plug’ the wells before leaving the site, but countries outside the E.U. rarely enforce such regulations. Instead, companies declare bankruptcy and leave behind what are called “orphan” wells that then become a problem of the state. And taxpayers.
We’re talking about a big problem. The number of abandoned wells is growing worldwide and they pose serious environmental and public health risks. Most continue to emit methane (a potent greenhouse gas), leak oil and contaminate groundwater. But some also leak carcinogenic benzene and hydrogen sulfide, an extremely deadly gas. People, plants and animals get sick and habitats are destroyed.
In the U.S. alone, there are an estimated 3.5 million abandoned oil and gas wells. Over 117,000 of those are considered orphaned with no company taking responsibility for their cleanup. ABC News estimates that it would cost $250 billion to plug all of those wells. Not even close to the $4.7 billion allocated by the Biden administration.
Adam Peltz, director and senior attorney at the Environmental Defense Fund, explains, “These wells are a threat to people and livelihoods, and especially kids and older people and people with health problems. We need to go find them because they’re a problem, not just for the people who live nearby, but for everyone on the planet.”
A Market Worth Developing for the Environment… and Business
But there is hope. There are companies working across the globe with expertise in exploiting declining oil and gas resources that know how to manage mature wells without causing any environmental damage.
In the U.S., Nano Gas Environmental makes “seemingly unproductive wells productive again” with their technology that gets oil flowing by using nanobubbles that attach to geology and repel oil off it. Instead of spending money to plug mature wells, the technology lets them be further exploited.
For governments in developing countries in Africa, Latin America and Asia, plugging abandoned wells is often not at the top of their priorities. Some companies are working to fill that gap. With operations in Brazil, the Republic of Congo and Equatorial Guinea, Trident Energy takes over mature fields no longer of interest to original owners. Jean-Michel Jacoulot, Trident Energy’s CEO, says, “IOCs sell assets because they don’t fit in the portfolio anymore – companies like us are going to fight for the barrel and for the dollar.”
In Europe, where regulations are the strictest for plugging abandoned wells and protecting the environment, XP oil and gas company was founded in 2005 with the purpose of investing in mature assets and making them more efficient and sustainable. At the 28 fields they manage in Romania and Ukraine, 460 wells have been optimized since 2013 with overall Green House Gas intensity reduced by 87%. And although Ukraine is not a member of the EU and has methane emissions regulations that are less strict, XP still uses the same technologies and processes.
XP’s sustainability-forward approach was fortified with the creation of XP Upgreen, a division that focuses solely on providing on the ground support to help companies improve the environmental footprint of their operations. Bart Wauterickx, Managing Director of XP Upgreen, explains that, “We help companies assess their environmental strengths and weaknesses and support in the challenges they face… At XP Upgreen, we don’t consider ourselves as consultants who simply recommend actions. We’re implementation partners—ready to deliver solutions when called upon.”
At an institutional level, the TRANSGEO project is working to repurpose abandoned wells so they can instead produce and store green geothermal energy. Project partners from Germany, Austria, Hungary, Croatia and Slovenia have identified numerous sites in Central Europe where they hope to turn “this environmental problem into an opportunity.”
While it has been proven that abandoned or orphaned oil and gas wells are dangerous for the environment and our health, thankfully, some companies and institutions are working to show they don’t have to be. As Wauterickx of XP Upgreen argues, “By considering the long-term environmental impact from day one and ensuring that no harm is done throughout the lifecycle of a project, it is entirely feasible to leave sites in excellent condition— safe for both wildlife and human communities. Creating a genuine market for the responsible and rational use of resources will drive greater responsibility in the oil and gas sector, with clear economic benefits as well.”
The solutions offered by companies are making progress, but will only be truly effective if employed on a wider scale. And the already evident signs of climate change show that action is needed now.
Rajani Baburajan