North Dakota plans to spend $66 million to plug wells abandoned by oil and gas companies in the U.S. state after the pandemic crushed demand for crude, causing a plunge in prices.
The $66 million has come from the Federal Coronavirus Aid, Relief, and Economic Security (CARES) Act, said Katie Haarsager, a spokeswoman for the North Dakota Oil and Gas Division, which is undertaking the project.
The move is expected to create jobs and keep some of the oilfield services companies at work in the second-largest oil producing state, as energy-related revenues plummet.
Well plugging is expected to sustain more than 600 oil and gas service sector jobs with 300 to 500 additional jobs managing reclamation of the sites, a statement from North Dakota’s Department of Mineral Resources said.
The impact of the virus and trade war on the state’s key industries of energy and agriculture could ripple through its budget for years through cuts to education, government and highway services.
2023-09-25 - Here’s a roundup of the latest E&P headlines, including field development milestones and new contract awards.
2023-09-25 - As public E&Ps hold fast with capital discipline, even exuberant prices might not be enough to substantially bump up production, although private operators remain a wild card, analysts said.
2023-09-25 - The Lufeng 12-3 FPSO in 240 m water depth is planned to reach peak production of 29,500 bbl in 2024.
2023-09-22 - U.S. oil rigs fell by eight to 507 this week, their lowest since February 2022, while gas rigs dropped by three to 118.