Methane (CH4) is often leaked during oil and gas operations, particularly from older wells. Infrastructure ages, seals degrade, and resources are allocated to more productive wells, leading to a lack of investment and continued emissions. Older wells were constructed with older techniques and are more prone to emitting GHGs.

CH4 is a potent GHG, with a global warming potential 25-84 times greater than that of CO2; therefore, even small leaks can have a significant impact on the environment and MTCO2e removed from the atmosphere.

Newly released protocols and methodologies have been developed to quantify and ensure that carbon credits from P&A activities meet and/or exceed the Core Carbon Principles and in fact exceed recognized standards for other types carbon credit projects.

The EPA estimates that there are more than three million known abandoned and orphaned oil and gas wells in the United States. Plugging an abandoned or orphaned well with government funds will not qualify for carbon credits.

Oil and gas operators must adapt to increasingly stringent environmental regulations to reduce emissions.

Expenses associated with operating idle wells are increasing as regulatory agencies are tightening their rules and bonding requirements. Oil and gas operators have significant P&A liabilities.

The total cost of plugging wells varies case-by-case depending on the location, depth, and age of the well, among other factors, but has never offered a return on investment.

The quantity of carbon credits attainable depends on the amount of methane reduced, plugging high-emitting wells would result in greater emissions reductions and more marketable credits.