Methane Impact: Sealing Leaks > EV Transition

There has been a notable reduction in methane emissions in the Permian Basin: Recent analysis showed that 2023 methane emissions from upstream oil and gas operations in the Permian Basin fell by 26% from the previous year (more than 34 Bcf in 2023) even as production increased. Additionally, the environmental impact of sealing leaks in oil and gas wells amounts to more than just emissions reductions as land restored and can be utilized for other purposes. Coming out to approximately 18.5 million tons of carbon dioxide equivalent abated, the reduction in methane emissions in the Permian was roughly equivalent to total emissions reductions in the U.S. from electric vehicles (EVs). These emission reduction figures demonstrate that addressing methane leaks from oil and gas operations can have an immediate and substantial impact on emissions. It also means that investments in sealing leaks is a critical pathway to emissions reductions, and may be more effective than other more visible options.

Problem Wells: One Size Does(n’t) Fit All

The Texas Railroad Commission (RRC) plays a critical role in safeguarding both environmental health and state natural resources by plugging orphaned leaking oil and gas wells. The RRC is tasked with primary regulatory jurisdiction over the oil and natural gas industry, and invested in protecting the future of Texas.

The RRC is working to address leaking wells that can have serious environmental consequences. These leaks can contaminate groundwater, posing a threat to our water supply. While a typical well plugging might cost around $30,000, many of the leaking wells the RRC is addressing require far more extensive work. This subset of problem wells requires considerably more resources than cookie cutter plug and abandonment as each has its own unique challenges.

In 2023, the average cost to plug one of these problem wells in Texas was $250,000, almost ten times the cost of plugging an average well. In September 2024, the commission spent ~$7M million to plug a single extraordinary well after contaminated water began spewing from it. These high impact wells demand expensive mitigation and transportation to contain and/or remove fouled water. This work is essential to safeguarding resources and public health and should be supported with more robust funding (currently under discussion in the Texas legislature).

Timing Matters: Funding Effective Plugging

While the oil and gas industry contributes significantly to state taxes and royalties, there are increasing demands on the RRC's plugging program fund. The RRC requested an additional $100 million in funding last fall, an amount that would increase the plugging budget by 75%. This additional funding would allow the RRC to proactively address leaking wells and prevent them from becoming environmental hazards, helping the RRC keep up with its mission to plug lower-priority wells before they become problematic.

Well-plugging programs in Texas and nationwide are among the highest impact environmental investments around. BioSqueeze specializes in sealing leaks like these and boasts a success rate of over 85% (3-4x higher than other sealants) expediting operations to more efficiently remediate problem wells.