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Oil Industry Playbook: How Drillers Offload Costly Cleanup Onto the Public

"Oil executive Tom Ragsdale walked away from his old wells, making the pollution left behind the state of New Mexico’s problem. His tactics, however, are ubiquitous in the industry."

"In December 1990, officials in the federal agency tasked with regulating offshore oil and gas drilling received a memo with a dire warning: America faced a ticking time bomb of environmental liability from unplugged oil and gas wells, wrote the agency’s chief of staff. Those wells and their costly cleanup obligations were being concentrated in the hands of cash-strapped drillers at the same time as production was shrinking. (The document, unearthed by public interest watchdog organization Documented, was shared with ProPublica and Capital & Main.)

More than three decades later, little action has been taken to heed that warning, and the time bomb is threatening to explode.

More than 2 million oil and gas wells sit unplugged across the country. Many leak contaminants like brine, methane and benzene into waterways, farmland and neighborhoods. The industry has already left hundreds of thousands of old wells as orphans, meaning companies walked away, leaving taxpayers, government agencies or other drillers on the hook for cleanup.

America’s oil fields are increasingly split between a small number of wells producing record profits and everything else. Researchers estimate roughly 90% of wells are already dead or barely producing."

Mark Olalde reports for ProPublica with illustrations by Peter Arkle December 30, 2024, co-published with Capital & Main.

SEE ALSO:

Landing Page For "Unplugged" Series (ProPublica)

Source: ProPublica, 01/02/2025