Decommissioning and Reclamation

Every well, no matter how successful, eventually reaches the point where it can no longer produce oil or gas economically. After the three stages of production are complete (primary, secondary, and tertiary or enhanced recovery), as much as 50% or more of the original hydrocarbons remain in the reservoir. But these hydrocarbons are increasingly expensive to extract. Once the cost of extraction exceeds the value of the resource, it’s no longer worth producing.