Pennsylvania legislators should pay close attention to Carbon Tracker’s recent report, “It’s Closing Time: The Huge Bill to Abandon Oilfields Comes Early.” Consider:
• Drilling companies, legally obligated to set aside funds to plug abandoned wells, may be carrying only 10% of its true cost (they use “historical costs” based on plugging shallow wells, not the much greater cost to plug deep shale wells).
• The pandemic has reduced the already weak market for oil and gas, forcing the “temporary” shutdown of many wells.
• Renewable energy, the most economical source of electricity, accounts for 70% of new U.S. electricity production and is killing the gas market for power generation.
• Electric vehicles soon will be cost competitive with gas-guzzlers, eventually killing the market for gasoline.
• Major businesses designing “circular economy” products eventually will kill the market for “disposable” plastics, the sole remaining major future market for natural gas.
• The horrible financial performance of the shale industry is causing investors to disinvest from it, drying up their ability to use other peoples’ money to shore up a dying and destructive industry.
As a member of the Citizens Climate Lobby, I strongly encourage legislators to support the Energy Innovation & Carbon Dividend Act that rewards families for reducing the use of fossil fuels and to make sure all fossil fuel companies have set aside enough funds to clean up their messes, rather than leaving it to our kids.
Paul Scanlon
West Sunbury