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End of the (Pipe)Line? Understanding how States Manage the Risks of Oil and Gas Wells
Author(s) -
Nelson Steven,
Fisk Jonathan M.
Publication year - 2021
Publication title -
review of policy research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.832
H-Index - 45
eISSN - 1541-1338
pISSN - 1541-132X
DOI - 10.1111/ropr.12411
Subject(s) - variety (cybernetics) , closure (psychology) , state (computer science) , business , fossil fuel , finance , economics , engineering , market economy , computer science , algorithm , artificial intelligence , waste management
An understudied aspect of the “fracking” debate involves questions and challenges associated with abandoned wells and well closure. States regulators have a variety of options when it comes to policies and financial tools related to site closure and remediation including bonds, fees, and specific legacy funds. Those advocating more robust financial programs suggest that they are necessary to mitigate risks to the public. Opponents contend that they dissuade operators from investing in older fields and add costs that are passed on to consumers. Using a novel index of state financial tools, this paper assesses why some states adopt more robust financial assurance while others do not.