Well Shut-In

With orphaned wells becoming an increasing costly and dangerous issue across North America, it is essential that the government enforce stricter policies surrounding well shut-ins and find a way to efficiently track open and abandoned wells. In an ideal situation, they could protect producers and land-owners from the financial and environmental burden associated with well remediation. In the meantime, the focus must be on the backlog of abandoned wells to date and finding an efficient way to track all wells and stakeholders moving forward.

That’s where Third Wave can help! The Well Shut in Solution can help track open and abandoned wells, run real-time reports on their status, and track key stakeholders associated with each site.

How does this impact you?

Government must:

  • Suspend and lock up abandoned wells which can be incredibly costly.
  • Protect producers, land owners, and associations from the financial and environmental costs associated with well remediation.
  • Efficiently manage the ongoing issue of abandoned wells.
  • Decrease the burden on taxpayers to help support the rising costs of well shut-ins.
  • Standardize operating procedures developed to identify and eliminate any stored energy.
  • Identify and control all potentially harmful energy sources related to well bores, wellheads, and associated facilities.
  • Reduce incidents due to unsafe pressures.

Producers must:

  • Comply with government protocol to avoid huge fines and expenses.
  • Avoid having all operations suspended if not in compliance.
  • Require a way to manage wells and the regulations surrounding well shut-in.
  • Report back to government on the state of their wells or could risk having them shut down and face major penalties.

The Facts

  • There are over 100,000 wells in the province of Alberta alone that are abandoned.
  • The Alberta Orphan Well Association has more than 2,000 orphan wells, more than double from a year ago. In 2016, it managed to close 185 wells.
  • Since 1992, Texas has spent nearly $300 million dollars tackling abandoned wells.
  • The average cost to plug a well in 2016 in the state of Texas was $15,700. The cost of reclaiming a single well starts around $10,000 but can skyrocket to millions.
  • Inactive wells in Alberta are currently a $30 Billion liability annually.
  • Number of inactive wells in Alberta has tripled in the last 20 years from 25,000 in 1989 to 81,602 inactive wells as of Nov. 26, 2016.
  • Since 1992, the Railroad Commission has plugged nearly 31,600 wells in Texas at a cost of more than $243 million.
  • Texas’s total orphaned well count eclipsed to 10,100 in the 2016 fiscal year.
Graph of abandoned wells in Alberta 2005-2015

The Benefits

  • Increase operational efficiencies and productivity through automated workflows.
  • Manage more wells without increasing resources through standardized processes.
  • Quick access to stakeholder’s information through centralized contact repository.
  • Reduce administrative costs with a cloud-based centralized platform of information.
  • Source and monitor all wells in real-time and on any device.
  • Identify and control all potentially harmful energy sources related to associated facilities.
  • Reduce incidents due to unsafe pressures or other equipment.
  • Centralized well data allows ease of trending and proactively reporting versus reactively.
  • Mobile-friendly solution syncs back to a central database as soon as connection is present.