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California
Related: About this forumBig Oil Companies Are Selling Their Wells. Some Worry Taxpayers Will Pay to Clean Them Up.
ProPublicaThe price of oil produced in California this year reached its highest level in a decade. President Joe Biden is releasing millions of barrels of oil from the Strategic Petroleum Reserve to keep prices in check. And fossil fuel companies earnings are so high that Gov. Gavin Newsom has called for a windfall tax on their profits.
California Assemblymember Steve Bennett, a Democrat who has long worked on oil policy, has seen oil companies in his Ventura district walk away from environmental liability. It gets passed on to a smaller company and to a smaller company until someone declares bankruptcy and the public is stuck with the cleanup bill, he said.
Supermajors Shell and ExxonMobil recently agreed to sell more than 23,000 wells in California, which they owned through a joint venture called Aera Energy, to German asset management group IKAV for an estimated $4 billion. Aera accounts for about a quarter of Californias oil and gas production, largely from pumping in Kern and Ventura counties.
California has the authority to ask for an additional $30 million in financial security from a single operator but only requires Aera to hold a $3 million bond. As a result, Aeras bonds cover less than half a percent of the $1.1 billion that ProPublica estimates it would cost the state to plug the wells based on the average cost to California for past well plugging. (That estimate does not include the additional cost of full surface remediation.)
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Big Oil Companies Are Selling Their Wells. Some Worry Taxpayers Will Pay to Clean Them Up. (Original Post)
quaint
Oct 2022
OP
Phoenix61
(17,649 posts)1. No reason to worry. It's a fact. Taxpayers will pay to
clean them up. Big companies sell to smaller companies as the well becomes less profitable. The smaller companies suck what they can out of the well then abandon them sticking the taxpayer with the cost.
The Bureau of Ocean Energy Management (BOEM) manages more than 2,000 active oil and gas leases with over 55,000 wells across 10.9 million acres of the Outer Continental Shelf (OCS). Approximately 58 percent of these wellsmore than 32,000are permanently or temporarily abandoned.
https://www.americanprogress.org/article/fixing-abandoned-offshore-oil-wells-can-create-jobs-and-protect-the-ocean/
https://www.nola.com/news/environment/article_6bdba0f0-db59-11eb-bf95-7fa1a01c1287.amp.htmlLike
quaint
(3,550 posts)2. No words, just rage.