Permanent Abandonment of Marginal Oil and Natural Gas Wells

This project proposes a groundbreaking approach to methane abatement by permanently closing marginal oil and natural gas wells. By generating carbon credits as financial incentives for the permanent closure of these wells, this strategy addresses the lack of economic motivation for operators to undertake this costly, non-revenue-generating activity. Marginal wells, also known as “stripper wells,” are significant contributors to emissions despite their relatively small production. The U.S. Environmental Protection Agency (EPA) estimates that marginal and abandoned wells emit over 280,000 metric tons of methane annually, equivalent to more than 7 million tons of CO₂e. Individual unplugged wells can release anywhere from 1 to 10 metric tons of methane per year, depending on casing integrity, age, and geology. Methane’s global warming potential (GWP) is 84–86 times that of CO₂ over a 20-year timeframe, making these emissions a critical climate target. By incentivizing the avoidance of continued hydrocarbon extraction and ensuring wells are permanently sealed to regulatory standards, this project: Prevents fugitive emissions of methane (CH₄) from marginal and orphaned wells. Avoids long-term CO₂ emissions from combustion of hydrocarbons that would otherwise be extracted (each barrel of oil combusted produces ~0.43 metric tons of CO₂). Provides measurable, verifiable, and additional emission reductions aligned with ISO 14064-2 and ICR methodology frameworks. For example, the permanent closure of just 1,000 marginal wells could prevent 5,000–10,000 metric tons of methane leakage annually, equivalent to 420,000–860,000 metric tons of CO₂e avoided on a 20-year GWP basis—comparable to removing 90,000–185,000 cars from the road each year. This approach not only addresses the immediate issue of fugitive emissions but also tackles the long-term problem of CO₂ emissions from fossil fuel combustion, offering a scalable and significant opportunity for global climate change mitigation.