With Respect to Orphaned Wells, PA DEP Doesn’t Know Jack Squat
Last week, MDN reported on new (to us) information shared at a Pennsylvania House Environmental Resources and Energy Committee hearing that the state’s program to plug orphaned and abandoned oil and gas wells is, quite frankly, a hot mess (see Plugging PA’s Abandoned & Orphaned Wells is a Hot Mess). The Dept. of Environmental Protection’s (DEP) recordkeeping of old wells is rife with errors. And the price to plug orphaned wells has ballooned from $17,500 per well in most cases to now over $110,000! An editorial appearing in the Williamsport Sun-Gazette takes the federal and state governments to task for spending big money on a problem they can’t even accurately describe or outline.
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The government screws up just about everything it touches — ever notice that? A perfect example is a water testing program set up by then-Attorney General Josh Shapiro in December 2022. In August 2022, Shapiro, who AG at the time, announced that he had finally bullied Energy Transfer into pleading “no contest” (meaning they don’t admit to a darned thing) in a so-called criminal case against the company for a series of accidents affecting construction for both the Revolution and Mariner East pipelines (see
Pennsylvania Gov. Josh Shapiro traveled to Scranton, PA, in mid-March to announce a proposal to “immediately pull Pennsylvania out of a multi-state carbon cap-and-trade program” (the so-called Regional Greenhouse Gas Initiative, or RGGI) and instead enroll PA in its very own RGGI-like carbon tax program (see
Pennsylvania Gov. Josh Shapiro traveled to Scranton, PA, in mid-March to announce a proposal to “immediately pull Pennsylvania out of a multi-state carbon cap-and-trade program” (the so-called Regional Greenhouse Gas Initiative, or RGGI) and instead enroll PA in its very own RGGI-like carbon tax program (see
An article appears today in the Pittsburgh Post-Gazette detailing how some people already are (or are planning to) make money from plugging orphaned and abandoned oil and gas wells in Pennsylvania (and elsewhere). It involves the same old cockamamie scam of carbon tax credits. The rough outline is this: Companies measure how much methane is currently leaking from a well. Then they fix it (presumably using government money to at least help pay for plugging), and once it’s fixed, they issue/create a carbon tax credit (or token) that someone else can buy on a public marketplace. Why buy it? So that person or company or entity can keep right on “polluting” — the carbon credit will “offset” their pollution. What a scam!
According to the data geeks at the U.S. Energy Information Administration (EIA), U.S. natural gas production grew by 4% in 2023, which was similar to the growth in 2022. U.S. gas production in 2023 averaged a whopping 125.0 Bcf/d (billion cubic feet per day). In 2023, more natural gas was produced in the Appalachia (Marcellus/Utica) region of the Northeast than in any other U.S. region, accounting for 29%, or 37.7 Bcf/d, of gross natural gas production. However, production growth in Appalachia slowed because our region doesn’t have enough pipeline takeaway capacity to transport more natural gas out of the region to the markets that would buy it.
In 2004, Pennsylvania implemented one of the most aggressive mandates to adopt wind and solar energy. At the time, less than 1% of net energy generation came from wind and solar in the Keystone State. In 2023, after the state had spent nearly $1.5 billion in subsidies, wind and solar generated less than 2%. And yet current Gov. Josh Shapiro (liberal Democrat) wants to double down by requiring 35% of electricity to come from politically favored sources, such as wind and solar, by 2035. The one energy source that has PROVEN to reduce carbon dioxide emissions? That would be natural gas, which is not on the politically favored sources list.
Last week, MDN brought you a story about the rampant cost inflation for plugging old conventional abandoned and orphaned oil and gas wells in the Keystone State (see
It’s full speed ahead for the radical anti-Marcellus Democrats in the Pennsylvania State Legislature. Last week, PA Gov. Josh Shapiro traveled to Scranton, PA, to do a dog-and-pony show announcing his personalized version of the Regional Greenhouse Gas Initiative (RGGI) carbon tax that would apply only to PA (see
Honestly, we can’t heap enough praise on the excellent work done by Pennsylvania shale drillers. It is unreasonable to expect there will be absolutely zero problems when engaging in something as complex as drilling a mile straight down and then one to four miles horizontally underground. Nothing in life is error-free. NOTHING. There’s always a problem. There’s always a slight error somewhere. Yet in PA drilling, only 54 shale wells out of 14,412 drilled since 2004 have resulted in the shale well “communicating with” (interfering with or leaking methane to) nearby water wells, conventional wells, abandoned wells, or other shale wells. That’s 0.0037 of the time, or 3.7 wells for every 1,000 drilled. Converting that number to a percentage, it’s 0.37% (about one-third of a single percentage point). Rounding further, it’s 0% of the time.
Plugging old abandoned (which means no longer producing) and orphaned (meaning the owner is not known) wells is not a simple thing to do. It’s estimated that Pennsylvania has perhaps 350,000 old abandoned and orphaned wells, many of them leftover from the early days of conventional oil drilling. The problem is finding them. Many are in out-of-the-way places. Plugging them cheaply is no simple matter. PA, OH, and WV have received millions from the federal government to help with their well plugging programs in an effort to control so-called fugitive methane. Over the past year, PA has plugged over 200 old wells (see
Last week, Pennsylvania Gov. Josh Shapiro traveled to Scranton, PA, to do a dog-and-pony show announcing his personalized version of the Regional Greenhouse Gas Initiative (RGGI) carbon tax that would apply only to PA (see
Thanks to abundant, clean Marcellus shale gas, Pennsylvania remained the country’s top electricity exporter in 2023 while simultaneously reaching a new low for carbon dioxide (CO2) emissions from electricity generation, according to the Pennsylvania Independent Fiscal Office’s (IFO) latest analysis. Yes, you read that right. PA is producing more electricity than ever, yet CO2 emissions from electric generation are lower than ever. How can that be?
Some fairly big news broke last week just as MDN editor Jim Willis was taking a two-day break. So let’s get caught up. Pennsylvania Gov. Josh Shapiro traveled to Scranton, PA, to announce a proposal to “immediately pull Pennsylvania out of a multi-state carbon cap-and-trade program” (the so-called Regional Greenhouse Gas Initiative, or RGGI) and instead enroll PA in its very own RGGI-like carbon tax program. Same end result: It would kill Marcellus-fired power plants in the state, driving them to close and relocate to West Virginia and Ohio, states that don’t engage in the lunacy of taxing carbon emissions from power plants.
This one is too funny. Pennsylvania Gov. Josh Shapiro, a leftist liberal Democrat and the chosen candidate of the environmental left, appeared at a Philadelphia union hall for a speech last week to tout a hydrogen hub that is supposedly coming to the area, called the Mid-Atlantic Clean Hydrogen Hub (MACH2). The MACH2 project is actually centered in Joe Biden’s home state of Delaware but will give a few economic table scraps to the Philly area, which excites and titillates PA politicians. Early in Shapiro’s “ain’t hydrogen just great” speech, Maya van Rossum, THE Delaware Riverkeeper (that’s what she calls herself), got up and began to shout down Shapiro. That’s right! The guy SHE voted for and helped elect! You see, Miss Maya (hereinafter to be called Mouthy Maya) doesn’t like hydrogen hubs, even “clean” hubs like the MACH2 project.
The Pennsylvania Dept. of Environmental Protection (DEP) recently (maybe yesterday?) posted a notice on its website announcing that conventional oil and gas well operators will not be eligible for new methane reduction well plugging grants (free money!) if they are not in compliance with state law paperwork requirements. Channeling their inner schoolmarm, the DEP tells drillers if they don’t have the proper “reports” filed about those wells, they (a) won’t see any money from Biden’s bloated giveaway program, and (b) the DEP will, sooner or later, come knocking and will fine them for paperwork transgressions. The old carrot and stick.