A Trillion Dollar Problem
Today’s energy sector faces a daunting number of inactive, unplugged non-producing wells along with their associated facilities, presenting a potential trillion-dollar problem for the industry, its investors and stakeholders—and ultimately the U.S. taxpayer. Posing significant environmental risks as sources of methane emissions and groundwater contamination, the impacts of these unplugged wells will continue to grow in magnitude if not addressed. Tackling this issue is an important step toward meeting global greenhouse gas reduction goals.
OneNexus has designed and developed a unique offering, OneNexus Assurance™, for the energy industry to address the growing problem of unfunded AROs via an insurance-like product.
What is an Asset Retirement Obligation (ARO)?
An ARO is a legal liability that a company carries on its balance sheet to cover the costs of retiring an asset. In oil & gas assets, the ARO includes costs associated with downhole wellbore plugging, removal of all oilfield equipment from the wellsite, and the reclamation and restoration, and cleanup of the surface location.
Education + Innovation
The energy transition has highlighted a problem and outlined what must be cleaned up as we transition our current energy infrastructure. Solving this problem will take education, collaboration, and innovation.
In our resources section, we offer answers to commonly asked questions as well as materials and links to the bigger conversation.
What Happens When an Oil Giant Walks Away
Assets are often sold to operators with less environmental stewardship.
How to stop more wells from becoming orphaned?
By guaranteeing the asset retirement obligations (AROs) are met. OneNexus allows companies to guarantee their AROs will be met in the future with OneNexus Assurance™. Read more about how unfunded
Common Questions
What is an asset retirement obligation (ARO)? This is the legal liability that a company carries on its balance sheet to cover the costs of retiring an asset. In an
Oil & Gas Magazine: The Guardians of Orphaned Wells
Industry executives, environmental leaders and elected officials are among those working to plug millions of wells left abandoned throughout the country. Article by Michelle Thompson Download PDF
Forgotten oil and gas wells linger, leaking toxic chemicals
CRANE, Texas (AP) — Rusted pipes litter the sandy fields of Ashley Williams Watt’s cattle ranch in windswept West Texas. The corroded skeletons are all that remain of hundreds of
Abandoned wells are a huge climate problem
The United States has more abandoned wells than we thought The number of abandoned oil and gas wells in the United States is much higher than previously thought, according to
