This post was co-authored by Environmental Defense Fund economist Luis Fernández Intriago and Senior Manager of Economics and Policy Analysis on EDF’s Economics team Maureen Lackner.
Texas has a huge problem with inactive oil and gas wells. Inactive wells account for 21% of all wells in the state and represent a potentially enormous $15.5 billion plugging cost for taxpayers. If left unplugged, these wells threaten the health and safety of Texas landowners and the industry itself.
The good news: Fixing this problem can create lots of jobs! Plugging Texas’ existing orphans and inactive production wells could generate as many as 84,000 direct and indirect and 68,000 induced jobs across the state.
- Spreading this spending over 10 years would create a steady source of jobs, translating to a roughly 6% increase in employment for the sector over the next decade.
- Spending money to plug these wells would generate $13.1 billion ($19.2 billion when including induced jobs) to Texas’s GDP.
Two companion bills working their way through the Texas legislature present a big opportunity for a triple win to create jobs, improve people’s health, and protect the state and local economy.