Zefiro Methane Corp. (ZEFI) announced that its subsidiary, Plants & Goodwin, Inc. (P&G), has successfully completed its first gas well remediation project in Oklahoma. The project involved a complex operation known as “plug and abandonment” on a deep gas well in Custer County, Oklahoma. The well, 15,000 feet deep, required the removal of 5,000 feet of casing to seal it permanently. This operation is expected to generate carbon offset products approved by the American Carbon Registry.
Zefiro Methane’s Founder and Chief Executive Officer Talal Debs commented,
“Too many Oklahomans and Americans living across the south-central United States are still forced to navigate the public health threats posed by these vestiges of a bygone era. The completion of this project not only represents Zefiro’s successful entry into a key marketplace but also reinforces the Company’s forward momentum and total commitment to executing our growth strategy by helping more of our neighbors combat this legacy issue.”
Unplugged Wells: A Major Challenge Across the U.S.
For decades, fossil fuel companies in the United States have drilled oil and gas wells to boost production, consumption, and exports. Once these wells become unprofitable, they are often abandoned. Many are left unplugged or improperly sealed, leading to environmental risks and fueling climate change.
Zefiro Methane’s press release explained that in the U.S., millions of oil and gas wells remain unplugged. For example, Oklahoma has about 18,000 known abandoned wells, while Texas and Louisiana have thousands more.
- Experts estimate it could cost up to $158 billion just to plug the suspected 1.14 million unplugged wells in these three states alone.
- Nationwide, sealing all abandoned wells could cost as much as $435 billion.
Dangerous Methane Source
Abandoned and unplugged oil and gas wells are leaking methane which is a potent greenhouse gas. Methane is 25X stronger than carbon dioxide at trapping heat and is a powerful contributor to global warming. This gas causes climate change, pollutes water, and is harmful to human health.
- An ESSI (Environmental and Energy Study Institute) study revealed that the EPA estimated, in 2018, abandoned wells released 290 kilotons of methane which is equal to burning over 16 million barrels of oil. Experts warn that rapid action is needed to cut methane emissions and avoid severe climate impacts.
Source: EPA
Financial Burden on States
Unplugged oil and gas wells create significant environmental and financial risks. When these wells become orphaned, meaning abandoned without responsible parties, they pose a burden on taxpayers with the costly cleanup. The responsibility to manage these wells falls on the states. Moreover, funds from industry fees and bonding requirements might not cover the costs.
Due to improper management, they release harmful pollutants, leading to air pollution, groundwater contamination, and degraded soil quality. These environmental impacts are highly detrimental to ecosystems, wildlife, and the land.
Safety Hazards
Another significant hazard of these unplugged and abandoned wells is the risk of explosions. It then becomes a persistent threat to both communities and the environment. Thus, addressing these wells is crucial to minimizing their long-term impacts.
Source: Zefiro Methane
Let’s see what other leaders of Zefiro Methane remarked on this project.
Zefiro’s Chief Commercial Officer Tina Reine commented,
“Now more than ever, investors throughout the international voluntary carbon marketplace are seeking offset products that can immediately help clean up our critical air, land, and water resources. The expertise of the oil and gas well remediation specialists on this project have further diversified both Zefiro’s operational presence and unique portfolio of high-quality, verified carbon credits, and our entire team cannot be more excited to continue meeting this long-unaddressed sector demand.”
Senior Vice President of Business Development and Chief Executive Officer of P&G Luke Plants commented,
“The Custer County project is the largest leap forward that our environmental remediation and carbon markets teams have taken together to help solidify Zefiro as the methane abatement sector’s leading comprehensive service provider. This successful effort is indicative of our environmental service division’s drive to help plug more of these wells throughout the south-central United States and in every corner of the country by expanding technical capacity, making operations even more efficient, and helping generate high-quality carbon credits.”
Zefiro Methane Credits: Maximizing Climate Impact
Zefiro also noted that its methane abatement credits deliver immediate and impactful climate solutions. As said before, methane has a significantly higher global warming potential than CO2 and has contributed to 30% of global temperature rise since the Industrial Revolution.
By focusing on methane reductions, Zefiro provides high-value credits that have significant demand for their ability to create measurable environmental benefits. These credits not only help bridge the gap for companies striving to meet net-zero goals but also play a crucial role in tackling the urgent challenge of climate change.
Expanding into New Regions
All said and done, the company is tackling the unplugged abandoned wells crisis seriously. It recently launched operations in West Virginia and acquired companies in Ohio and Pennsylvania to strengthen its capabilities nationwide. The company has partnered with federal and state agencies, including the National Park Service and the Commonwealth of Pennsylvania, to seal orphaned wells.
Additionally, it plans to expand its remediation efforts into other southern states like Texas and Louisiana within the next year. These regions also harbor thousands of abandoned oil and gas wells, many of which are not yet properly sealed.
By addressing methane leaks, which trap heat 25 to 85 times more than carbon dioxide, Zefiro is protecting communities and combating climate change efficiently.
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