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Energy Companies Have Left Colorado With Billions of Dollars in Oil and Gas Cleanup
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Texas freeze creates energy mix debate 10:00 | 11/03/2021
News of the Texas power crisis spread throughout Asia, where energy growth markets such as Vietnam are considering US liquefied natural gas imports as an alternative to coal-fired electricity generation. Sam Reynolds, Â energy finance analyst from the USâ non-profit Institute for Energy Economics and Financial Analysis outlines the lessons to take on board from the recent crisis.
Recent events in the US have brought to the fore issues surrounding diversifying energy sources globally. Photo: Le Toan
During the recent extreme winter weather in the United States, surging electricity demand in Texas collided with falling generation, forcing the stateâs grid operator to implement rolling blackouts. In many cases, blackouts lasted for over 24 hours, causing fuel and electricity supply shortages and disruptions throughout the gas supply chain.
As the state tries to reform its relationship to drilling, an expensive task awaits. Image credit: Helen H. Richardson/The Denver Post via Getty Images March 11, 2021 From the print edition
When an oil or gas well reaches the end of its lifespan, it must be plugged. If it isn’t, the well might leak toxic chemicals into groundwater and spew methane, carbon dioxide and other pollutants into the atmosphere for years on end.
But plugging a well is no simple task: Cement must be pumped down into it to block the opening, and the tubes connecting it to tanks or pipelines must be removed, along with all the other onsite equipment. Then the top of the well has to be chopped off near the surface and plugged again, and the area around the rig must be cleaned up.
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