An interesting article in a legal publication I just read is titled: Plugging the Gap: How US Well Abandonment Could Become the Next Carbon Investment Frontier. It was from BRG consulting group.
The article goes into depth about approaching the vast number of inactive and orphaned oil and gas wells found all over the US. not as a liability, but as an investable carbon‑asset class. By systematically plugging and abandoning (P&A) leaking wells and quantifying the resulting methane abatement, project sponsors can generate high‑integrity carbon credits.
The.concept is that O and A wells emit methane. Stopping this by plugging avoids future greenhouse gas emissions that can be quantified, converted into CO₂‑equivalent, and—through a certified group—issued as carbon credits. Three characteristics make this particularly compelling. It turns a liability into an asset.
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That’s super interesting! Thanks for sharing.
Where can I learn more about this topic and t he companies that are investing?
Depending upon your state, you can use a search engine to look up the topic as it relates to the state and what is happening. Various state agencies are responsible for cleanup of wells if the operators are not doing it. Also use the carbon sequestration topic to search it that way.
Hi Martha! I read a few articles on carbon sequestration and it led me to wonder if there is a way to predict where in my state (Oklahoma) that a carbon sequestration facility could be likely to be built based on geological formation? I saw there is one in the NE corner of the state. Also, do mineral rights owners stand to profit from such activity or just land owners who it seems are judged to own the pore space? What about Working Interest owners? I still have a few minute WI’s but was considering selling in order to eliminate liability since they pay next to nothing but would reconsider if participating in carbon capture was a possibility. Maybe a good topic for a future NARO video? Thanks as always!
Carbon sequestration needs to be located near the emission point to minimise pressure losses and corrosion. Like on the same property near the smokestacks
Rockhound,
You are correct about typical carbon sequestration. The process described is a way of capping the escaping methane from O & A wells to stop future emissions. A mathematical equation is applied to convert the future emissions stopped to a present value that in turn is converted into carbon credits. Some state resources may be available to help in the capping costs..
Since nothing is being “ captured” mineral interest owners receive nothing. It benefits thr landowner where the wells are located and the state as well.
I will be giving a NARO Carbon sequestration webinar for surface and mineral owners on April 15. Sign up will be open shortly.
There are several different types of CO2 sequestration and/or usage-some impact surface owner, some impact mineral owners.
It’s an emerging industry with great promise. Will everyone like it. Of course not