{"id":1989,"date":"2025-04-04T16:12:23","date_gmt":"2025-04-04T21:12:23","guid":{"rendered":"https:\/\/blogs.edf.org\/markets\/?p=1989"},"modified":"2026-03-13T14:56:47","modified_gmt":"2026-03-13T19:56:47","slug":"texas-can-create-150000-jobs-by-plugging-non-producing-wells","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/markets\/2025\/04\/04\/texas-can-create-150000-jobs-by-plugging-non-producing-wells\/","title":{"rendered":"Texas can create 150,000 jobs by plugging non-producing wells"},"content":{"rendered":"<p><em>This post was co-authored by Environmental Defense Fund economist <a href=\"https:\/\/www.edf.org\/people\/luis-fernandez-intriago\">Luis Fern\u00e1ndez Intriago<\/a> and Senior Manager of Economics and Policy Analysis on EDF&#8217;s Economics team <a href=\"https:\/\/www.edf.org\/people\/maureen-lackner\">Maureen Lackner<\/a>.\u00a0<\/em><\/p>\n<p><span data-contrast=\"auto\">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.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559738&quot;:240,&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\"><em>The good news:<\/em> Fixing this problem can create lots of jobs! Plugging Texas\u2019 existing orphans and inactive production wells could generate as many as 84,000 direct and indirect and 68,000 induced jobs across the state.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559738&quot;:240,&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"o\" data-font=\"Courier New\" data-listid=\"11\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:1440,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Courier New&quot;,&quot;469769242&quot;:[9675],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;o&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"2\"><span data-contrast=\"auto\">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.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559738&quot;:240,&quot;335559740&quot;:360}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"o\" data-font=\"Courier New\" data-listid=\"11\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:1440,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Courier New&quot;,&quot;469769242&quot;:[9675],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;o&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"2\"><span data-contrast=\"auto\">Spending money to plug these wells would generate $13.1 billion ($19.2 billion when including induced jobs) to Texas\u2019s GDP.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559738&quot;:240,&quot;335559740&quot;:360}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"auto\">Two companion bills working their way through the Texas legislature present a big opportunity for a triple win to create jobs, improve people\u2019s health, and protect the state and local economy. <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559738&quot;:480,&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<p><!--more--><\/p>\n<p><span data-contrast=\"auto\">Texas Senate Bill 1150 and companion House Bill 2766 mark an important first step in addressing an urgent and growing problem for Texans: unplugged, long-term inactive oil and gas wells. The bills encourages oil and gas companies to plug inactive wells that were drilled over 25 years ago and have been inactive for more than 15 years&#8211;alleviating risks to human health, natural resources and state finances.\u00a0<\/span> <span data-contrast=\"none\">Leaving these inactive oil wells unplugged could risk the integrity of Texas\u2019 <\/span><span data-contrast=\"none\">oil and gas reservoirs, and could ultimately cost taxpayers money if the wells eventually become orphaned.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559738&quot;:480,&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<p>However, while we applaud efforts of SB 1150 and HB 2766 to hold operators accountable to their longstanding legal obligations to plug their non-productive wells, we estimate that the bills would target less than 25% of the state\u2019s current inactive wells. With modest changes, these bills could be strengthened to better prevent wells from becoming taxpayer burdens and reducing the economic viability of the geology of Texas.<\/p>\n<p><span data-contrast=\"auto\">As the legislation evolves, we want to highlight for policy makers an <\/span><i><span data-contrast=\"auto\">economic benefit<\/span><\/i><span data-contrast=\"auto\"> of plugging non-producing oil and gas wells: job creation. <\/span><b><span data-contrast=\"auto\">Our analysis shows that plugging 112,100 of Texas\u2019 existing orphans and inactive production wells could generate as many as 84,000 direct and indirect and 68,000 induced jobs across the state.\u00a0<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559738&quot;:480,&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<h2><span data-contrast=\"auto\">Counting the inactive wells in Texas<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559738&quot;:480,&quot;335559740&quot;:360}\">\u00a0<\/span><\/h2>\n<p><span data-contrast=\"auto\">Recent data from the <\/span><a href=\"https:\/\/www.rrc.texas.gov\/resource-center\/research\/data-sets-available-for-download\/#oil-and-gas-well-data-table\"><span data-contrast=\"none\">Texas Railroad Commission<\/span><\/a><span data-contrast=\"auto\"> (RRC) shows that Texas is home to roughly 380,000 unplugged wells owned by solvent operators. While many of these wells are producing oil and gas, a large share of them have likely reached the end of their economic lifespan. Our analysis of RRC data finds that about 103,600 wells (27% of all wells) are tagged as \u201cinactive,\u201d indicating that they are not currently producing. About 22,400 inactive wells (6% of total, 22% of inactive wells) have been inactive for 15 years or longer. <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:240,&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<figure id=\"attachment_1990\" aria-describedby=\"caption-attachment-1990\" style=\"width: 785px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/\/pie-chart.png\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-1990\" src=\"https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/\/pie-chart.png\" alt=\"Count of Texas oil wells by status\" width=\"785\" height=\"464\" srcset=\"https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/pie-chart.png 785w, https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/pie-chart-300x177.png 300w, https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/pie-chart-768x454.png 768w\" sizes=\"auto, (max-width: 785px) 100vw, 785px\" \/><\/a><figcaption id=\"caption-attachment-1990\" class=\"wp-caption-text\">Count of Texas oil wells by status<\/figcaption><\/figure>\n<p><span data-contrast=\"auto\">Many of these wells will never return to production.\u00a0<\/span> <span data-contrast=\"auto\">EDF analysis of a cohort of Texas\u2019s inactive wells finds that, historically, only 23% of inactive wells reactivate after even just 5 years of inactivity. After 15 years inactivity, just 6% typically reactivate.<\/span><\/p>\n<p><strong>Share of Wells that Remain Inactive\u00a0<\/strong><\/p>\n<p><a href=\"https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/\/share-of-wells.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-1997\" src=\"https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/\/share-of-wells-1024x230.png\" alt=\"\" width=\"843\" height=\"189\" srcset=\"https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/share-of-wells-1024x230.png 1024w, https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/share-of-wells-300x67.png 300w, https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/share-of-wells-768x172.png 768w, https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/share-of-wells-1536x345.png 1536w, https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/share-of-wells.png 1547w\" sizes=\"auto, (max-width: 843px) 100vw, 843px\" \/><\/a><\/p>\n<h2><span data-contrast=\"auto\">Avoiding orphan wells to protect health, property values and the taxpayers\u2019 dime<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559738&quot;:480,&quot;335559740&quot;:360}\">\u00a0<\/span><\/h2>\n<p><span data-contrast=\"auto\">The longer inactive wells are allowed to sit idle, the more likely it is that they join the ranks of <\/span><a href=\"https:\/\/www.texastribune.org\/2024\/06\/04\/texas-orphan-well--plugging-oil-and-gas\/\"><span data-contrast=\"none\">Texas\u2019s 8,500 orphan wells<\/span><\/a><span data-contrast=\"auto\">. Orphan wells are oil and gas wells without a solvent owner (usually a result of bankruptcy). As such, the state must take on the expensive task of plugging and remediating the well site. Unplugged wells can act as conduits from subsurface oil and gas reservoirs, which are highly corrosive environments, to groundwater resources and the surface. If not maintained, well infrastructure can corrode, lose structural integrity and become avenues for leaking hydrocarbons and brines. These substances can contaminate groundwater and surface waters, leak hazardous liquid and gases, including carcinogens, and emit greenhouse gases such as methane.\u00a0 In addition to causing health and environmental hazards, they lower property values and reduce the viability of the geology for other uses, including geothermal and carbon storage but also further oil and gas production.\u00a0 <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559738&quot;:480,&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">While properly plugging and abandoning these wells is not free, it is far more costly to deal with emergency blowouts and clean up contaminated water and soil caused by improperly abandoned wells. Plugging wells before they are orphaned not only creates jobs, but it also prevents a much more costly clean-up down the road.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559738&quot;:480,&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<h2><span data-contrast=\"auto\">Well Plugging and Job Creation in Texas<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559738&quot;:480,&quot;335559740&quot;:360}\">\u00a0<\/span><\/h2>\n<p><span data-contrast=\"auto\">We rely on the Bureau of Economic Analysis\u2019 Regional-Input-Output Modeling System (RIMS II) to estimate job creation.<\/span> <span data-contrast=\"auto\">Input-output models allow economists to estimate the indirect, direct, and induced effects associated with an increase or decrease in spending across a sector or industry.<\/span><span data-contrast=\"auto\">\u00a0Our methods follow the steps outlined in detail in this <\/span><a href=\"https:\/\/www.energypolicy.columbia.edu\/publications\/considering-federal-program-permanently-plug-and-abandon-offshore-oil-and-gas-wells\/\"><span data-contrast=\"none\">economic analysis<\/span><\/a><span data-contrast=\"auto\">.<\/span>\u00a0<span data-contrast=\"auto\">\u00a0<\/span><span data-contrast=\"auto\">\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Our spending estimate is based on the total responsibility or cost associated with plugging Texas\u2019s orphan and inactive wells. Our well data comes from the Texas RRC, which catalogs both existing orphan wells and inactive wells in the state. In addition, the <\/span><span data-contrast=\"auto\">Texas RRC<\/span><span data-contrast=\"auto\"> data provides average per foot plugging costs per well at the oil and gas district level. We multiply this by TX RRC-reported well depths to estimate a per-well plugging cost. The sum of plugging costs across all wells represents the total responsibility or spending needed for the industry. <\/span><\/p>\n<p><strong>RRC Well Summary Stats for Job Creation Estimates\u00a0<\/strong><\/p>\n<p><a href=\"https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/\/well-status.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-1999\" src=\"https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/\/well-status.png\" alt=\"\" width=\"976\" height=\"210\" srcset=\"https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/well-status.png 976w, https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/well-status-300x65.png 300w, https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/well-status-768x165.png 768w\" sizes=\"auto, (max-width: 976px) 100vw, 976px\" \/><\/a><\/p>\n<p><span data-contrast=\"auto\">When we apply 2022 RIMS II regional multipliers to the total plugging responsibility of $15.5 billion we find that plugging Texas\u2019s current orphaned and idle wells translates to a total of nearly <\/span><b><span data-contrast=\"auto\">84,000 direct and indirect and 68,000 induced jobs<\/span><\/b><span data-contrast=\"auto\">.<\/span> <span data-contrast=\"auto\">Documented orphaned well closure account for the smallest share of jobs at 4,400 direct\/indirect jobs. Idle wells account for nearly all jobs \u2013 79,500 direct plus indirect, while long-term idle wells (15 years or longer) account for nearly 14,800 direct and indirect jobs.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<p><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<figure id=\"attachment_1991\" aria-describedby=\"caption-attachment-1991\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/\/Summary_Map_Type_2.png\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-1991\" src=\"https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/\/Summary_Map_Type_2-1024x302.png\" alt=\"Job Creation Estimates by County (by Well Category) \" width=\"540\" height=\"159\" srcset=\"https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/Summary_Map_Type_2-1024x302.png 1024w, https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/Summary_Map_Type_2-300x88.png 300w, https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/Summary_Map_Type_2-768x226.png 768w, https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/Summary_Map_Type_2-1536x452.png 1536w, https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/Summary_Map_Type_2-2048x603.png 2048w\" sizes=\"auto, (max-width: 540px) 100vw, 540px\" \/><\/a><figcaption id=\"caption-attachment-1991\" class=\"wp-caption-text\">Job Creation Estimates by County (by Well Category) <em>Source: Elaborated by EDF with data from The Railroad Commission of Texas (RRC) and BEA&#8217;s Regional Input-Output Modeling System (RIMS II)\u00a0<\/em><\/figcaption><\/figure>\n<figure id=\"attachment_1992\" aria-describedby=\"caption-attachment-1992\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/\/total_jobs_type1.png\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-1992\" src=\"https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/\/total_jobs_type1-1024x861.png\" alt=\"Total Job Creation Estimates by County (Type 1) \" width=\"540\" height=\"454\" srcset=\"https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/total_jobs_type1-1024x861.png 1024w, https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/total_jobs_type1-300x252.png 300w, https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/total_jobs_type1-768x646.png 768w, https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/total_jobs_type1-1536x1291.png 1536w, https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/total_jobs_type1-2048x1722.png 2048w\" sizes=\"auto, (max-width: 540px) 100vw, 540px\" \/><\/a><figcaption id=\"caption-attachment-1992\" class=\"wp-caption-text\">Total Job Creation Estimates by County (Type 1) <em>Source: Elaborated by EDF with data from The Railroad Commission of Texas (RRC) and BEA&#8217;s Regional Input-Output Modeling System (RIMS II)\u00a0<\/em><\/figcaption><\/figure>\n<figure id=\"attachment_1993\" aria-describedby=\"caption-attachment-1993\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/\/total_jobs_type2.png\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-1993\" src=\"https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/\/total_jobs_type2-1024x861.png\" alt=\"Total Job Creation Estimates by County\u00a0(Type 2)\u00a0 Source: Elaborated by EDF with data from The Railroad Commission of Texas (RRC) and BEA's Regional Input-Output Modeling System (RIMS II)\u00a0\" width=\"540\" height=\"454\" srcset=\"https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/total_jobs_type2-1024x861.png 1024w, https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/total_jobs_type2-300x252.png 300w, https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/total_jobs_type2-768x646.png 768w, https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/total_jobs_type2-1536x1291.png 1536w, https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/total_jobs_type2-2048x1722.png 2048w\" sizes=\"auto, (max-width: 540px) 100vw, 540px\" \/><\/a><figcaption id=\"caption-attachment-1993\" class=\"wp-caption-text\">Total Job Creation Estimates by County (Type 2) Source: Elaborated by EDF with data from The Railroad Commission of Texas (RRC) and BEA&#8217;s Regional Input-Output Modeling System (RIMS II)<\/figcaption><\/figure>\n<p><span data-contrast=\"auto\">These jobs would be generated across the state. Our analysis shows that 230 of Texas\u2019s 254 counties (91%) have wells that need to be plugged. Assuming that these jobs are generated in the counties where the wells are, we find that a median of 120 direct\/indirect jobs and about 100 induced jobs could be expected for any given county. Counties with a very high share of orphan and inactive wells, could experience a much higher number of jobs. For example, Andrews and Ector Counties in the Permian Basin would generate about 7,000 direct\/indirect jobs and over 5,500 induced jobs each to plug their relatively high share of wells.\u00a0\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<p><strong>Top 10 Counties by Total Job Creation Potential\u00a0\u00a0<\/strong><\/p>\n<p><a href=\"https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/\/county1.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-2000\" src=\"https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/\/county1.png\" alt=\"\" width=\"838\" height=\"418\" srcset=\"https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/county1.png 838w, https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/county1-300x150.png 300w, https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/county1-768x383.png 768w\" sizes=\"auto, (max-width: 838px) 100vw, 838px\" \/><\/a><\/p>\n<p><span data-contrast=\"auto\"><em>Source: Environmental Defense Fund 202<\/em>5<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<h2><span data-contrast=\"auto\">Putting job creation into context for the industry<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559738&quot;:480,&quot;335559740&quot;:360}\">\u00a0<\/span><\/h2>\n<p><span data-contrast=\"auto\">To put the Type I job numbers into context, we looked at data from the Bureau of Labor Statistics. The <\/span><a href=\"https:\/\/data.bls.gov\/cew\/apps\/data_views\/data_views.htm#tab=Tables\"><span data-contrast=\"none\">BLS Quarterly Census of Employment and Wages<\/span><\/a><span data-contrast=\"auto\"> shows that the 2024 average Texas employment numbers for the oil and gas sector are about 134,000 jobs. Assuming wells are plugged over 10 years, this would translate to a roughly 6% increase in employment for the sector over the next decade.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">In addition, we find that plugging all current future utility wells would generate $6.5 billion ($9.1 billion when extending to induced jobs, Type II multipliers) in earnings and $13.1 billion ($19.2 billion when including induced jobs) to Texas\u2019s GDP. When compared to the estimated plugging costs of $15.5 billion, our analysis suggests potential for a positive economic return on investment, especially when considering unquantified benefits such as increased property values, enhanced usability of the geology, avoided remediation costs, and public health improvements. While the exact economic return is sensitive to discount rates and implementation timelines, the substantial job creation and economic activity generated by this initiative represent benefits for Texas communities.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n<h2>Economic impacts associated with plugging all orphaned and idle wells<\/h2>\n<p><a href=\"https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/\/type-1.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-2001\" src=\"https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/\/type-1.png\" alt=\"\" width=\"954\" height=\"193\" srcset=\"https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/type-1.png 954w, https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/type-1-300x61.png 300w, https:\/\/blogs.edf.org\/markets\/wp-content\/blogs.dir\/32\/files\/type-1-768x155.png 768w\" sizes=\"auto, (max-width: 954px) 100vw, 954px\" \/><\/a><\/p>\n<p><span data-contrast=\"auto\">Addressing Texas\u2019 inactive well problem has been years in the making and it will take time and resources to bring the situation under control. While this challenge will present hurdles for the industry, tackling this problem is also an opportunity for large-scale job creation for industry and the counties that support it, in addition to other economic, public health and environmental benefits that come from plugging end-of-life wells. As all stakeholders acknowledge \u2013 industry, regulators, policymakers, landowners, and many others\u2013it\u2019s time to get moving on closing these non-productive wells and put Texans to work now.\u00a0 <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:360}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>This post was co-authored by Environmental Defense Fund economist Luis Fern\u00e1ndez Intriago and Senior Manager of Economics and Policy Analysis on EDF&#8217;s Economics team Maureen Lackner.\u00a0 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 &#8230;<\/p>\n","protected":false},"author":152997,"featured_media":1534,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[43],"tags":[105943,105944,105942],"coauthors":[105954],"class_list":["post-1989","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economics","tag-jobs","tag-labor","tag-oil-wells"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Texas can create 150,000 jobs by plugging non-producing wells - Market Forces<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/blogs.edf.org\/markets\/2025\/04\/04\/texas-can-create-150000-jobs-by-plugging-non-producing-wells\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Texas can create 150,000 jobs by plugging non-producing wells - Market Forces\" \/>\n<meta property=\"og:description\" content=\"This post was co-authored by Environmental Defense Fund economist Luis Fern\u00e1ndez Intriago and Senior Manager of Economics and Policy Analysis on EDF&#8217;s Economics team Maureen Lackner.\u00a0 Texas has a huge problem with inactive oil and gas wells. 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