Abandoning old and inactive oil & gas wells is not only crucial for environmental protection of the land but also plays a significant role in addressing stakeholders’ concerns. By dealing with issues related to safety, liability, and land restoration, a properly abandoned well ensures regulatory compliance. It also enhances community relations, investor confidence, and the long-term reputation of Energy companies. ELM’s experienced team helps its clients to ensure that this occurs.
Recently, a client had several hundred wells that needed to be abandoned to reduce its liability and adhere to industry regulations. ELM’s Downhole division delivered unprecedent results in a tight window. The ELM team collaborated effectively with the client’s internal team in such a way that more than 300 wells were closed by using up to 10 service rigs and numerous other contractors in approximately 100 working days. The client then rewarded ELM with 100 more wells to be abandoned. By program completion, ELM had saved our client over $2.8M against their ARO costs. On another recent project, the ELM team completed 150 downhole abandonments at a cost of $11M, saving our client $5M against their ARO costs.
Do properly abandoned oil & gas wells contribute to community safety?
Effectively abandoning old oil & gas wells ensures that potential safety hazards are mitigated. Unsealed or poorly abandoned wells can pose risks such as uncontrolled gas releases, groundwater contamination, and/or surface instability. By adhering to proper abandonment techniques, companies prioritize community safety, minimizing potential risks, and ensuring the well-being of nearby community members. Proper and competent abandonment of wells provides reassurance to the community that their safety is being taken seriously.
How does responsible well abandonment address environmental concerns?
Well abandonments responsibly completed addresses environmental concerns by minimizing the impact on ecosystems and ensuring land restoration. Poorly abandoned wells can lead to environmental issues such as contamination of groundwater or disruption of natural habitats. By following proper abandonment practices, including well closure and land restoration, ELM’s clients prove their commitment to environmental stewardship. Land reclamation and restoration activities, such as removing surface infrastructure and rehabilitating disturbed areas, contribute to preserving natural habitats, promoting biodiversity, and mitigating the environmental impact of well abandonments. Responsible well abandonment helps safeguard the environment for the benefit of both current and future generations.
ELM has recently completed approximately 1,400 downhole abandonments, saving clients in aggregate of more than $41M. By prioritizing well abandonments our clients not only realize cost savings they also enhance stakeholder satisfaction and boost confidence within the communities that they operate. Stakeholder satisfaction goes well beyond regulatory obligation and is simply the responsible thing to do for the land and the people that live within the affected communities.
ELM helps clients mitigate risk, enhance stakeholder confidence, and ensure compliance. For all your comprehensive closure needs call ELM today at 587-392-4002 or visit us at www.elminc.ca