Report: 16,000 jobs could be created by plugging orphan wells in Appalachia
Thousands of Jobs Expected in Appalachia as Federal Funds Flow to Plug Orphaned Wells
With federal taxpayer dollars flowing in to plug orphaned and abandoned oil and gas wells, the Appalachian region could see thousands of jobs created in the next few decades, according to a report from the Ohio River Valley Institute.
The report argues that Pennsylvania, Ohio, West Virginia, and Kentucky could create 13,000-16,000 direct jobs with $1.3 billion in federal funds to reduce methane. The reductions would come from monitoring and repairing equipment, along with plugging old orphaned oil and gas wells scattered across Northern and Central Appalachia.
The money for this initiative comes from the Infrastructure Investment and Jobs Act and the Inflation Reduction Act: about $200 million would go to Kentucky, $288 million to West Virginia, $366 million to Ohio, and $490 million to Pennsylvania.
“We are at the very beginning stage of what could be people’s whole careers involved in plugging and abandonment (or decommissioning) oil and gas wells in the region,”
said Ted Boettner, a senior researcher at ORVI and co-author of the report with Gregory Cumpton of the University of Texas-Austin. “It’s sort of like making lemonade out of lemons. All of these old wells that are not plugged and many of them are very hazardous and leaking greenhouse gas emissions. We could bring back thousands of jobs over the next 50 years to these communities for people to clean up this mess.”
During a report launch hosted by non-profit group ReImagine Appalachia, Boettner called the plugging programs an enormous opportunity to train young workers and give them the skills to build a lasting career, as well as a chance for laid-off workers in industries like coal to find a good job.
“Utilizing $1.3 billion from the IIJA and IRA to decommission orphaned and marginal conventional wells would require an estimated 2,400 direct jobs on well sites,”
Boettner and Cumpton wrote. “These are only direct jobs. Indirect jobs will also be created from the purchase of goods and services.”
The institute’s study, Boettner and Cumpton noted, was a way to alert states to the task ahead and help them plan education and economic strategies for spending the federal money.
Orphan wells are a significant problem in Appalachia. The wells have no traceable owner and can be more than a century old; some present a hazard to local residents or the environment due to pollution. Pennsylvania has plugged more wells in the last year than it has in almost a decade, but it’s estimated that the state has more than 300,000 undocumented orphan wells, mostly in western and northern Pennsylvania.
The federal government has a well count of 127,000 orphan wells nationally: 27,000 in Pennsylvania; 20,000 in Ohio; 12,000 in Kentucky; and 6,000 in West Virginia.
The institute’s report emphasized that plugging the wells will be a long-term process and getting workers in place to tackle it will require economic and political coordination.
“That’s a political leadership question of getting the contractors, agencies, and workforce development people together in the same room to iron out some things,”
Boettner said.
The report pushed for much of this skill training to come through unionized apprenticeships.
More oversight, too, for how this federal money gets spent will be necessary; in Pennsylvania, critics have noted a lack of transparency in the commonwealth’s well-plugging program.
“We do need robust agencies to be implementing these programs as efficiently as possible so it helps the money go further and we spend well,”
said Dana Kuhnline, program director for ReImagine Appalachia.
What collaboration is needed between government agencies, academic institutions, and industry experts to ensure the workforce is adequately trained for the plugging and abandonment of orphaned wells in the Appalachian region
Nal wells in the Appalachian region not only addresses the environmental concerns associated with methane emissions but also presents a significant economic opportunity,”
said Boettner. “By investing in this initiative, we can create a sustainable workforce that contributes to the rehabilitation of our environment while supporting the livelihoods of individuals and communities.” The report highlights the potential long-term benefits of this initiative, as jobs created through the plugging and abandonment of orphaned wells would continue for several decades. The direct jobs created would encompass a range of roles, including monitoring, repair work, and the actual plugging of wells. Additionally, there would be indirect employment opportunities in support industries such as manufacturing, supply chain management, and engineering services. The Appalachian region, with its rich history in the energy sector, has experienced significant job losses in recent years due to shifts in the industry. The decline of coal mining, in particular, has left many communities grappling with unemployment and economic instability. The initiative to plug orphaned wells presents a unique opportunity to revitalize these communities by providing new employment prospects. By training young workers in the skills required for well plugging and abandonment, this initiative offers a pathway for sustainable and meaningful careers. Moreover, it provides an avenue for workers who have been displaced from industries such as coal mining to secure stable and well-paying jobs. The training and employment opportunities offered through this initiative can help to rebuild the economic backbone of the region while simultaneously addressing environmental concerns. The allocation of federal funds to Kentucky, West Virginia, Ohio, and Pennsylvania underscores the government’s commitment to supporting the Appalachian region. By directing financial resources towards the plugging of orphaned wells, the government acknowledges the importance of remedying the environmental hazards associated with these wells while also acknowledging the potential for job creation in the region. The report by the Ohio River Valley Institute has shed light on the transformative potential of this initiative. The creation of thousands of direct jobs, coupled with the indirect employment opportunities in related industries, could significantly boost the economies of the Appalachian states. Moreover, the long-term nature of these jobs ensures stability and ongoing support for individuals and communities. As the funds flow into the region, it is crucial to prioritize training and skill development to ensure that the workforce is equipped to handle the task at hand. Collaboration between government agencies, academic institutions, and industry experts will be vital in designing comprehensive training programs that align with the specific needs of the sector. In conclusion, the allocation of federal funds to plug orphaned wells in the Appalachian region presents a unique opportunity for economic revival and environmental restoration. By investing in this initiative, not only can we create thousands of jobs but also contribute to a cleaner and more sustainable energy landscape. It is an opportunity to address the legacy of abandoned wells while building a brighter future for the communities of Appalachia.
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