Insight
Lower 48 P&A liabilities: the risk that shouldn't be discounted away
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Report summary
Plugging and abandoning (P&A) low productivity, idled, or orphaned onshore wells is quickly gaining attention. The reasons are vast. ESG pressures are mounting across upstream, regulators are messaging that comprehensive P&A plans could quell oilfield job losses, lower commodity prices bring the economic cutoff date of wells forward, and lower budgets mean less capital for workovers. In this paper we clarify P&A liabilities, outline why they’re increasing, and present a view on how the set of associated risks will grow.
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