Plugging PA’s Abandoned & Orphaned Wells is a Hot Mess
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 Federal Regs Push Well Plugging Costs in PA Over $100,000 per Well). While federal wage requirements are certainly the primary reason for the inflated cost to plug old wells (if you take federal money, you play by the federal government’s rules), more information is now coming to light about the sorry state of affairs in PA’s well plugging program.
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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.
The blowhard Democrat Governor of Pennsylvania, Josh Shapiro, took a bow last year to tout that “his” administration (as opposed to the Democrat who preceded him, Tom Wolf) had plugged more than 130 abandoned old oil and gas wells in the state, more than “the previous eight years combined” (see
Last week, the Baker Hughes rig count lost seven rigs after gaining three rigs the week before. The count went from 629 active rigs two weeks ago to 622 last week. The national count has consistently stayed between 620 and 625 (or one or two above or below that range) since last October until recently, when it went higher for a few weeks. But now it’s back in the same long-term range. The Marcellus/Utica remained the same last week with Pennsylvania at 24 rigs (the most since last June), Ohio with 12 rigs, and West Virginia with 8 rigs. The M-U combined is running 44 rigs, which it has run in four of the last five weeks.
Permitting in Pennsylvania, especially permits overseen by the Dept. of Environmental Protection (DEP), has been broken for years. A Chapter 102 Erosion and Sedimentation permit sometimes takes two, three, or even six to eight months for approval — instead of the law-mandated 14 days. It got so bad that in the fall of 2019, PA State Sen. Gene Yaw introduced a bill to allow third-party reviews of these permits in an attempt to speed it up (see
The Pennsylvania Supreme Court yesterday debated whether the federal National Gas Act empowers the state to review permits for a pipeline project or bars it from doing so — a question that hinges on whether appeals to a state board are preempted civil actions or administrative proceedings that would fall under the state’s purview. It’s an important distinction. The case can potentially set a precedent that could influence future infrastructure projects and “state-federal power dynamics.”
A new poll released by Axis Research and Pennsylvania Energy Infrastructure Alliance (PEIA) shows 58% of Pennsylvania voters disagree with Joe Biden’s infamous “pause” on approving new LNG export permits. Here’s the astounding part: 57% of poll respondents were Democrat and Independent voters! Yes, a majority of Democrats and Independents in PA disagree with old Joe. But that’s not all. After learning more about Biden’s LNG pause, 41% of those surveyed said they were less likely to vote for Biden because of his LNG pause. Joementia is in trouble in PA.
Democrat Pennsylvania Governor Josh Shapiro told Bloomberg reporters the Biden administration’s recent pause in LNG export licenses should be “limited in time.” Shapiro stopped short of outright criticizing Biden’s pause, something that could undermine job creation in a state that’s relying on energy to drive growth. Shapiro couldn’t even stand up Joementia, what a wimp! What Shapiro said amounts to a tiny love tap. It’s completely meaningless. Shapiro is standing by while Biden DESTROYS Marcellus drilling in the Keystone State.