October 15, 2021 — Nearly two weeks after a pipeline ruptured and leaked tens of thousands of gallons of crude oil into the Pacific Ocean, environmental policy experts testified before Congress on Thursday, urging lawmakers to require more federal oversight of aging and abandoned offshore oil platforms and pipelines.
The recent spill off the Orange County coast has put the nation’s oil and gas infrastructure under new scrutiny. Some California lawmakers and environmental advocates have called for a prohibition on all future offshore drilling, while others want to extend a ban to companies already operating in state and federal waters.
In testimony before the House subcommittee on energy and mineral resources, offshore drilling experts painted a bleak picture of the federal government’s ability to ensure that oil and gas companies plug their old wells and dismantle existing platforms and pipelines. They warned that if Congress does not create financial incentives for the industry to pay the full cost of decommissioning its equipment, taxpayers will be stuck with the bill.
The cost could be astronomical. The federal government’s own estimates suggest that between $35 billion and $50 billion would be needed to plug offshore oil and gas wells that are no longer producing — or are no longer profitable. Meanwhile, companies have committed to financing only about $3.7 billion, less than a tenth of the expected cost.
Read the full story at the Los Angeles Times