From Liability to Strategic Asset: A Data-Driven, Regulatory-Compliant Framework for Inactive Well Portfolio Recovery and Its Implications for U.S. National Energy Security

Abstract

Inactive oil and gas wells represent a largely underutilized category of domestic energy asset. In the United States, tens of thousands of inactive wells sit within mature producing basins, constrained by regulatory deadline pressure and the absence of systematic evaluation methodology. This paper presents a four-part data-driven framework for inactive well portfolio recovery, developed and validated through direct field implementation: a purpose-built ETL data pipeline integrating heterogeneous petroleum data sources; a weighted multi-criteria composite scoring algorithm producing a four-tier well classification; a nine-domain regulatory compliance automation system aligned with Texas Railroad Commission requirements; and a national scaling analysis with actionable policy recommendations. The framework was applied to a portfolio of over two hundred inactive wells across multiple Texas producing fields, demonstrating substantial improvements in evaluation efficiency, capital allocation precision, regulatory compliance performance, and economic recovery relative to conventional well-by-well approaches. The quantified outcomes of this field deployment establish that systematic data engineering and algorithmic prioritization can convert inactive well inventories from regulatory liability into recoverable domestic energy supply at scale. Applied nationally, the methodology offers a domestic energy security pathway characterized by rapid deployment timelines, capital efficiency superior to new exploration, and environmental co-benefits aligned with modern ESG frameworks.