The US oil and gas economy thrives despite having a smaller workforce in 2024. This year alone, America has produced massive amounts of oil, touching 13.2 million barrels per day (BPD).
That’s an increase of 2.4% in oil production, up from 12.9 million bpd last year. The development is boosting the US economy and helping it achieve higher GDP numbers. While that’s a silver lining, the underbelly remains dark, which America cannot ignore.
Also Read: US Recession Worries Fade: Its Business as Usual in the Stock Market
US Oil Economy: A $280 Problem Raises Its Head
The oil industry contributed billions in revenue to the US economy but has come with a baggage of $280 billion.
In 2024, thousands of abandoned oil wells sprawled across the large state of Texas. The abandoned oil fields, commonly called ‘zombie wells’ or ‘orphan wells, ‘ pose a threat to the environment that could jeopardize public health and safety.
Also Read: New Country Shows Interest To Join BRICS Before 2024 Summit
Environmental and Economic Impact of Abandoned Wells
The oil wells have been abandoned for years as the sector’s workforce is dwindling. This has led to the owners’ suffering losses, which have forced them to shut down.
The latest report by the US Department shows that $280 billion must be allocated to clean up the abandoned oil wells despite the oil sector delivering billions in taxes, which adds a significant dent in the US economy.
“These legacy pollution sites are environmental hazards,” said the US department. Along with the US economy, “they jeopardize public health and safety by contaminating groundwater, emitting noxious gases like methane, littering the landscape with rusted and dangerous equipment, creating flooding and sinkhole risks, and harming wildlife.”
Also Read: Can Shiba Inu (SHIB) Reach $0.01 Before 2050?
“Over the last two years, more and more abandoned wells have started to spill or even gushed geyser-like, formed salt and chemical-laden lakes or caused sinkholes,” Reuters reported. Therefore, the US oil industry gives and also takes back from the economy.