Oil & Gas News

Old Oil Wells Get New Life: Billions Flow to Clean Up America’s Forgotten Fields

Federal initiative unlocks new funding from $4.7B infrastructure package to clean up abandoned, orphaned oil wells nationwide

This year’s funding is part of an overall historic $4.7 billion investment from President Biden’s Bipartisan Infrastructure Law to address orphaned oil and gas wells across the nation

Some of the orphaned, unplugged and abandoned oil wells on public lands in Oklahoma are among thousands targeted in the Department of Interior handout of nearly $110 million.

The department recently announced $109.6 million will be used by five federal agencies to work on plugging and reclaiming orphaned oil and gas wells in national parks, national forests, national wildlife refuges and on other public lands and waters.

The five federal agencies within the Departments of the Interior and Agriculture will address 484 high-priority, polluting wells that pose threats to human health and safety, the climate, and wildlife. The announcement brings the total distributed to address orphaned wells on federal lands to $250 million, the entirety of the funding made available in the Bipartisan Infrastructure Law for work on federal lands.

This year’s funding is part of an overall historic $4.7 billion investment from President Biden’s Bipartisan Infrastructure Law to address orphaned oil and gas wells across the nation that will create good-paying union jobs, catalyze economic growth and revitalization, improve public health and safety, and reduce harmful methane leaks. Methane pollution from many of these unplugged wells is a serious safety hazard and a significant driver of climate change, with methane being more than 25 times as potent as carbon dioxide at trapping heat in the atmosphere.

“Toxic orphaned wells pose a significant threat to American communities and our environment,” said Secretary Deb Haaland. “I’ve seen firsthand how orphaned oil and gas wells left behind by extractive industries lead to hazardous pollution, water contamination, and safety hazards. This crucial funding reflects President Biden’s vision for a cleaner, safer and more equitable future. It’s a win-win-win – reducing harmful methane emissions, restoring our treasured landscapes, and creating good-paying jobs.”

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The allocation is part of a total $250 million provided through the Bipartisan Infrastructure Law to clean up orphaned well sites on federal public lands and is in addition to $4.3 billion to plug orphaned wells on state and private lands and $150 million for clean-up on Tribal lands. It is estimated that the money distributed for public lands will plug over 1,000 orphaned wells. To date, 199 of these orphaned wells have been plugged.

The recent $109.6 million investment will fund cleanup efforts across 13 states and the Gulf of Mexico Outer Continental Shelf, covering a diverse array of projects, including plugging, reclamation, methane measurement, and infrastructure removal at various national parks, wildlife refuges, national forests, and offshore oilfield locations.

See below for a list of funded projects slated for this fiscal year:

FY25 Bipartisan Infrastructure Law Funded Federal Orphaned Well Projects by Agency and State:  

Agency

State

Total Number of Wells

Total Project Funding Amount ($)

Bureau of Land Management

Ohio

Pennsylvania

West Virginia

Wyoming

39

11,775,000

Bureau of Safety and Environmental Enforcement

Gulf of Mexico Region – Grand Isle 22 Area

Gulf of Mexico Region – High Island Area

Gulf of Mexico Region – South Timbalier 54/67 Area

Gulf of Mexico Region – West Delta Area

20

30,621,527 

U.S. Fish and Wildlife Service

Louisiana

Michigan (MI) / Oregon

Montana

Oklahoma

Texas

288

17,900,158

National Park Service

Louisiana

Ohio

Tennessee

Texas

Multiple states

24

13,280,000 

U.S. Forest Service

Kentucky

Pennsylvania

113

16,808,945   

Grand Total (All Bureaus Combined Project Funding) 

484

* $90,385,630

*Does not include $19,186,348 in administrative and contingency funding

Source: US Department of Interior – Press Release | HERE

Source: OK Energy Today – Article by Jerry Bohnen | HERE

PLUGGING ORPHANED OIL WELLS – WHY IT IS IMPORTANT!

Orphaned oil and gas wells are abandoned wells left behind by defunct companies, often decades ago before modern regulations required proper closure and cleanup. These neglected wells pose serious environmental and public health risks, leaking methane – a potent greenhouse gas – into the atmosphere while potentially contaminating groundwater supplies with oil, gas, and other harmful chemicals. Left unsealed, these wells can threaten nearby communities with explosive gases, contaminate farming and ranching land, and create dangerous physical hazards. Beyond the immediate safety concerns, orphaned wells contribute significantly to climate change through methane emissions. The Environmental Protection Agency estimates that an unplugged well emits roughly 170 metric tons of methane per year, equivalent to the annual emissions from 37 passenger vehicles. Plugging these wells not only protects public health and the environment but also creates jobs for skilled energy workers who can apply their expertise to permanently sealing these hazardous sites.

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