Life Cycle of a Well | Exploration | Well Abandonment | Reclamation (2024)

Every company that explores for and develops Canada’s oil and natural gas resources is financially responsible for safely managing wells and associated facilities. This includes all stages of a well’s life cycle: exploration, development and operation, abandonment andreclamation.

What is the Average Life Span of a Well?

he average life span of an oil or natural gas well is 20 to 30 years. However, new technologies are being developed to find ways to extend the life span.

The life span of a well is based on the active years the well is in production. ‘Active’ is one of the six main life cycle classifications of a well.

Well Classifications

There are six main classification within the life cycle of an oil or natural gas well. A well may be Active, Inactive, Suspended, Abandoned, Orphaned or Reclaimed. The life cycle of any well begins with an active classification and ends after reclamation.

ACTIVE WELLS

An oil or natural gas well is considered active when it is producing oil or natural gas.

INACTIVE WELL

The well is inactive when it has not produced oil or natural gas in 12 months. This is usually a temporary situation – production can be expected to re-start.

SUSPENDED WELL

A suspended well is not producing and has been safely secured, but may produce in the future.However, putting the well back into production takes some effort to reverse the measures taken to secure the well.

ABANDONED WELLS

An abandoned well is permanently shut down, plugged, wellhead removed, and considered safe and secure by regulators. Upon well abandonment, the site is remediated and reclaimed. Companies assess the presence of soil contamination, produce a report detailing how contamination will be mitigated, and confirm the site has been remediated in accordance with provincial requirements.

ORPHAN WELLS

Inactive, suspended and abandoned wells are managed by the well owner (licensee), who is responsible for abandonment and reclamation costs. An orphan well has no identifiable owner (for example, due to an unexpected bankruptcy) and has been suspended for some time. In Alberta, orphan wells are managed by the industry-funded Orphan Well Association which works to reclaim these wells.

RECLAMATION CERTIFIED

When an oil or natural gas well is no longer productive, the operating company is required to remove equipment and reclaim the site. A well site is reclamation certified after it is remediated and reclaimed to current regulatory standards.

Orphan Well Association

In Alberta, to protect against licensees unable to cover the costs of abandonment and reclamation, the Alberta Energy Regulator (AER) collects an annual levy from all active oil and natural gas producers and remits the funds to theOrphan Well Association(OWA). The Orphan Well Levy is 100% funded by industry. The OWA, on behalf of industry, conducts testing to determine the work needed to abandon the well, then oversees the required work to safely abandon wells so the land can be reclaimed

Life Cycle of a Well | Exploration | Well Abandonment | Reclamation (2024)

FAQs

Life Cycle of a Well | Exploration | Well Abandonment | Reclamation? ›

Well lifecycles have three primary areas of focus or stages; design and construction, well operation and intervention, and abandonment. ISO 16530 delineates the lifecycles stages into six lifecycle phases, Basis of design, design, construction, operational, intervention, and abandonment.

What is abandonment of a well? ›

An abandoned well is defined as a well that is no longer used for producing oil and gas. From: Utilization of Thermal Potential of Abandoned Wells, 2022.

What is the plug and abandonment process of a well? ›

When a well reaches the end of its lifetime, it must be permanently plugged and abandoned. Such plug and abandonment (P&A) operations usually consist of placing several cement plugs in the wellbore to isolate the reservoir and other fluid-bearing formations.

What is the final step in a well life cycle? ›

When the well no longer produces at an economic rate, the final steps in a well's life cycle are abandonment and reclamation. The wellhead and associated equipment are removed, the wellbore is filled with cement, and the well capped and marked. The area is reclaimed and the lease is relinquished back to the landowner.

What is the danger of abandoned wells? ›

These wells have the potential to contaminate water supplies, degrade ecosystems, and emit methane and other air pollutants. Thus, orphaned wells present risks to climate stability and to environmental and human health, which can be reduced by plugging.

How do you fill in an abandoned well? ›

Fill the well with bentonite chips to a depth of 6 feet below the surface. Three feet of neat cement grout then should be added above the bentonite. The plug of neat cement grout over the bentonite will ensure that the bentonite will not dry out and lose its seal.

How to remove an abandoned well? ›

Decommission – Remove the pump and any other obstructions and completely plug or seal an abandoned well by filling the casing or bore hole with grout from the bottom to the ground surface.

How much does it cost to plug an abandoned oil well? ›

The median cost of plugging a well without restoring the surface is about $20,000. Plugging and reclaiming the surface around the well—which may be done for aesthetic, environmental, or job creation reasons—increases the median cost to $76,000. Each additional 1,000 feet of well depth increases costs by 20 percent.

Why do wells need to be abandoned? ›

To maintain water quality of the aquifers and to protect people or animals from falling in the well, abandonment procedures have been established and differ widely depending on many variables including but not limited to: State and local regulations.

Why should wells that are no longer useful be abandoned and plugged? ›

Drilled, hand dug wells and cisterns are a safety threat to people or animals. The groundwater can become polluted by surface water runoff from oil or fuel leaking from vehicles and equipment, fertilizers and pesticides or animal waste. The water in your new well can become contaminated if the old well is not plugged.

What are the 5 stages of process life cycle? ›

Business Process Management Life Cycle: The 5 Stages
  • Design.
  • Modeling.
  • Execution.
  • Monitoring.
  • Optimization.

What is the well life cycle? ›

Well lifecycles have three primary areas of focus or stages; design and construction, well operation and intervention, and abandonment. ISO 16530 delineates the lifecycles stages into six lifecycle phases, Basis of design, design, construction, operational, intervention, and abandonment.

How long will a drilled water well last? ›

The Timeline of a Well

Many homeowners have moved into houses that are over a hundred years old, going through many owners throughout the years. You might not have even been alive when the last well was drilled! But this is important, because depending on certain limitations, wells can operate for 50 years or 10.

How deep are abandoned wells? ›

A large number of these abandoned wells are large diameter dug wells constructed with brick or stone casings, and range in depth from 20 to 50 feet. An abandoned well can pose a health and safety hazard if it is improperly sealed or not sealed at all.

How abandoned wells pose danger to homes? ›

First, abandoned and orphaned wells can leak oil, gas, and other toxic chemicals into the surrounding air, soil, or groundwater, including arsenic, benzene, and hydrogen sulfide. Most alarmingly, these wells can also emit methane, an odorless gas that can seep into nearby buildings and pose major health hazards.

Who is responsible for plugging abandoned oil wells? ›

Since the former owners of these abandoned wells often cannot be traced, the responsibility for plugging the wells, which is where the well bore is sealed to prevent contaminants from migrating between underground rock layers, typically falls to governments who may need further information on how best to manage them.

What material is used for well abandonment? ›

Technically, the term well abandonment refers to the filling and sealing of an unused well with an approved, impermeable material such as bentonite chips, concrete, or neat cement.

What are the criteria for abandonment issues? ›

Symptoms of fear of abandonment

overly sensitive to criticism. difficulty trusting in others. difficulty making friends unless you can be sure they like you. taking extreme measures to avoid rejection or separation.

What is the purpose of the abandonment condition? ›

An abandonment clause in a property insurance contract permits the property owner to abandon lost or damaged property and still claim a full settlement. Coinsurance is the claim amount an insured must pay after meeting deductibles and is also the level at which an owner must protect property.

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