Although not enacted yet, it is projected that the ‘‘Orphaned Well Clean- up and Jobs Act of 2021’’ will have a profound effect on the oil and gas industry and plugging industries.
Currently, the have recorded 56,000 potential idle wells. The allocation of the money will largely be grants to states to use the money to plug idle and orphan wells. The amount being allocated in this first proposed Bill will be $8,000,000,000.
This money would be allocated first to states with an orphan or idle well program in place. Then smaller amounts allocated to help states establish these programs.
The main goal is to put oil and gas workers back to work that may be hurt by regulations concerning fossil fuels. Much of the funding may be earmarked for that. This is preliminary.
