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Future Plugging Liability Will Be Astronmical

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Click to Enlarge

Nothing to see here, only the headline and a reminder that the mighty U.S. tight oil and gas sector at some point in the not-so-distant future has to pay all its debt back and clean up all its shit up. What you can see above ground and what you can't below ground. Dig it out of the ground and dispose of it. Legally.


If it's got Radium in it, and is subject to Federal NORM standards, which a lot of the Permian Basin has, it's going to cost billions.


Regardless of whether you own a chicken plucking company, or a tight oil company, in spite of all the dividends, investor presentations and air time on CNBC...you have NOT turned a profit, are not profitable, until you have paid your debt back and covered all plugging and decommissioning costs. That's part of doing business in America.


Or are you OK with just letting them off the hook on all that? Remember no tight oil or tight gas CEO in the country is personally liable for anything, not debt or future plugging liability. They don't give a shit.


As Far as You Can See. And Underground? You Would Not Believe It!
As Far as You Can See. And Underground? You Would Not Believe It!

If you think this is not your problem as a taxpayer, just wait. Let the kids worry about it?


Ask them. Show them photograps of what it looks like, explain to them what Radium is, then ask them. I think they are already pissed about the mess we are leaving them.

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Conway Carriage
Conway Carriage
6 days ago

That's the real nightmare. Imagine all those wells rotting, and leaking, how does all that get abandoned properly without cash flow. I don't think it does. The regulators should have them paying into a fund, and the cash should be returned only after a quality p&a is done.

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