Abandoned oil and gas wells in the U.S.: Understanding the process of sealing them off
In the heart of Ashland, Ohio, a significant operation is underway to plug an orphan oil well that has posed a threat to local resident Maria Burns for decades. The well, located in her front yard and extending nearly half a mile underground, has been a persistent challenge due to its age and prior plugging attempts.
The well in question is one of the many orphan wells that dot the American landscape, a term used to describe wells for which no oil or gas company is legally responsible. In Burns' case, the Ohio Orphan Well Program, which has been active for several decades, was able to send the rig out to plug the well after a few years.
The program's success is a testament to Ohio's growing efforts in addressing the issue of orphan wells. In the 2025 fiscal year, the state plugged 478 orphan wells, a significant increase from previous years. This progress is commended by Ted Boettner, a senior researcher at the Ohio River Valley Institute, who acknowledges Ohio's strides but emphasises the need for a larger scale approach.
Plugging orphan oil and gas wells is a complex process involving several key steps. First, authorities identify and assess the wells, prioritising those with the greatest environmental risks. Detailed plans are then developed for plugging each well, involving mapping, surveys, and environmental clearances. The physical plugging process follows, typically involving the placement of cement plugs at various depths to isolate underground layers. After plugging, the site is reclaimed to mitigate environmental impact.
However, challenges associated with plugging orphan wells are numerous. High and variable costs, a large number of wells, insufficient financial assurance, environmental hazards, and regulation and funding complexities all contribute to the complexity of the task. The median cost to plug and reclaim a well is about $76,000, but this can vary widely depending on location, well age, depth, and accessibility.
The government has started paying more attention to covering the costs of plugging orphan wells, with the federal government designating $4.7 billion dollars for the purpose. Yet, the challenge for every effort to scale up well-plugging is that it is expensive. The federal government describes $20,000 per well as the "low cost" scenario and $145,000 as the "high cost" side of the spectrum.
Despite the challenges, efforts are expanding with federal support and dedicated state programs to accelerate plugging and mitigate harm. Leaks from defunct oil and gas wells can harm human health, leach into water reservoirs, and contribute to global warming, making the task all the more urgent.
As the plugging operation continues on Maria Burns' property, it serves as a reminder of the ongoing efforts to address the issue of orphan wells and ensure a safer, cleaner future for all.
- With the growing attention towards Environmental, Social, and Governance (ESG) factors, the government's initiative to plug orphan oil wells is a step towards demonstrated responsibility and commitment towards health-and-wellness, as well as environmental preservation.
- While the Ohio Orphan Well Program has been successful in plugging several Standard Placement and Acquisition Company (SPAC) wells, the challenge going forward lies in addressing the structural issues such as high costs, insufficient financial assurance, and regulation complexities, to enable a larger scale approach.
- The potential risks associated with leaks from defunct oil and medical-conditions, as well as the impact on water reservoirs and global warming, necessitate an investment in credit facilities to cover the costs of plugging and reclaiming these orphan wells, thereby safeguarding public health and promoting science-backed health-and-wellness solutions.
- The incoming administration has proposed an increase in bonding requirements for energy companies, aiming to ensure that assets are properly managed and maintained, thereby reducing the risk of future orphan wells and Preserving the long-term prosperity of the industry.
- Given the extensive impact that leaks from defunct oil and gas wells have on the broader macroeconomic indicators, including inflation and credit market stability, it is crucial for governments and the energy sector to work together to develop innovative solutions, such as alternate energy sources and advanced plugging technologies, to address this pressing issue.
