Plugging Away: Dealing with Inactive Wells Remains Challenging

Inactive oil and gas wells are a notable problem across the country, and Texas is no exception. Wells that no longer produce can provide a conduit for methane, fracking fluids, and other compounds to the surface. Once out of the ground, these substances can present hazards and require environmental remediation.

These risks are part of the forces driving well plugging campaigns across the country, with Texas playing a leading role. However, growing expenses and relatively slow gains on the large number of inactive and orphaned wells highlight a need for better solutions. Texas State Senator Mayes Middleton of Galveston has proposed legislation aimed at speeding up well plugging progress in Texas by setting deadlines for plugging inactive wells. Under current regulations, producers can request extensions to a well’s inactive status, making it so they don’t need to plug inactive wells. The proposed bill would require oil and gas companies to plug wells that have been inactive for at least 15 years with some exceptions.

Pros & Cons: Mixed Reviews of Well Plugging Bill

The bill has been met with a small degree of support by industry organizations, but Middleton’s fellow Republicans in the senate are urging him to reconsider the policies outlined in his bill. Members of the Senate Committee on Natural Resources questioned the degree to which the proposed deadlines would harm smaller oil and gas companies, which could face proportionally greater financial burdens than large operators.

Industry leaders have stated they could comply with the proposed bill’s requirements, though this would impose financial burdens. The Texas Oil and Gas Association (TXOGA) supports the bill, noting how state plugging programs are already being funded - in part, by fees paid by oil and gas companies. Environmental policy groups support the idea of imposing deadlines, though they think that 10 years would be a more appropriate time frame. In contrast, industry groups state that a phase-in period would help producers find companies that could help them plug the inactive wells in their inventories.

Time and Money: Hurdles to Plugging Wells

Even after finding a well plugging company, producers would have to contend with labor shortages and inevitable delays in plugging projects. At the same time, the amount of money it would take to plug Texas’ roughly 150,000 inactive wells would be astronomical. In 2024, the Texas Railroad Commission, the state agency that oversees the oil and gas industry, plugged more than 1,000 wells at a cost of $34 million. In late 2024, the Texas Railroad Commission wrote to the state legislature requesting $100 million in additional funding to help the agency with the growing cost of well plugging efforts.

Whether the bill, or some modified form of it passes, the problem of plugging these wells sooner or later remains. Regardless of the bill and future funding it is apparent that efficient, cost-effective solutions are needed to plug more wells for less money.

For the past 3+ years BioSqueeze has taken on over 200 of the most challenging to plug wells in the world for clients big and small across North America. We've dealt with gas migration, mechanical integrity, leaking plugs, etc. on new wells, orphan wells, and everything in between often answering the call after every other alternative had been tried to no avail at costs in excess of $1M/well. This wealth of adverse experiences has proven to be a core competency for our team as we've mapped out risk factors and KPIs critical to efficient and effective operations. This experience combined with our revolutionary biomineralization technology has resulted in a success rate 3-4x higher than other sealants expediting operations to more efficiently remediate problem wells.