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About: Orphan wells     Goto   Sponge   NotDistinct   Permalink

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Orphan, orphaned or abandoned wells are oil or gas wells that have been abandoned by fossil fuel extraction industries. These wells may have been deactivated because of economic viability, failure to transfer ownerships (especially at bankruptcy of companies), or neglect and thus no longer have legal owners responsible for their care. Decommissioning wells effectively can be expensive, costing millions of dollars, and economic incentives for businesses generally encourage abandonment. This process leaves the wells the burden of government agencies or landowners when a business entity can no longer be held responsible. As climate change mitigation reduces demand and usage of oil and gas, its expected that more wells will be abandoned as stranded assets.