Https cloudfront us east 2 images arcpublishing com reuters DTLX5 C3 RAFKENBMFX333 QV6 XPE

Zombie wells gush back to life

A growing crisis is unfolding in West Texas as abandoned oil wells, previously thought to be safely plugged, are springing back to life with alarming frequency, Reuters reports. Oil well control specialist Hawk Dunlap, and his partner Sarah Stogner, have documented over 100 such "zombie" wells, many of which are spewing toxic water and gases into the environment. This resurgence is attributed to poor-quality plugging jobs, inadequate oversight by the Texas Railroad Commission (RRC), and increasing subsurface pressure from wastewater injection related to fracking operations in the Permian Basin.

The financial implications of this issue are significant. The RRC, tasked with managing these orphan wells, plans to plug 2,000 wells this year using state funds. However, with over 8,500 known inactive or unplugged orphan wells in Texas and potentially thousands more undocumented, the cost is mounting. The state has received $105 million in federal grants to address the problem but estimates it will need over $481 million in total. This growing liability poses a risk to both the state's finances and the oil industry's reputation.

The situation is further complicated by the ongoing wastewater disposal practices of active oil operations in the Permian. With approximately 24 million barrels of produced water generated daily, and 40-55% of this being reinjected into local disposal wells, the subsurface pressure continues to rise. This pressure is not only causing poorly plugged wells to leak but also triggering earthquakes, leading to restrictions on new drilling permits in some areas. As the crisis escalates, it may force regulatory changes and increased financial burdens on oil companies operating in the region, potentially impacting their profitability and operational strategies.

Related News & Articles

View All
Proven results icon blue 1

Subscribe to go deep

Upstream Intelligence is our weekly overview designed to keep you up to date on the most interesting and important trends impacting U.S. energy producers. Sign up today for your subscription!