Possibility of Plugging of Orphaned Oil and Gas Wells by Issuance of Carbon Offset Credits in Japan

Abstract

This study examines the possibility of registration carbon credits in Japan for the reduction of greenhouse gas emissions from a project to plug natural gas from the abandoned Kurokawa Mine （oil field） in Akita Prefecture, Japan, with reference to a project to plug an abandoned oil well by a carbon credit certifier in the United States. As a result, the effectiveness of the project has not been confirmed in the Japanese Greenhouse Gas Inventory Report, which is a requirement for registration of J-credits, due to insufficient measurement and research of greenhouse gas emissions from decommissioned oil wells in Japan, and there are various issues such as the long monitoring period after sealing and the marketability of the credits. However, attempting to issue credits will greatly contribute to the visualization of the effects of GHG reductions among stakeholders, and will improve the quality of the project by sharing information and preventing leakage. Furthermore, the promotion of a decarbonized society through the purchase and carbon offsetting of carbon credits generated in the region by local companies is expected to be a game changer as a tool for the formation of a regional recycling symbiosis zone.