The Future of Oil and Gas: A Shift Towards Renewable Energies
The world is making strides towards achieving net-zero emissions by 2050, which means that a significant portion of our energy supply will come from carbon-free sources. Interestingly, many of these renewable energy systems share similarities with the skills and resources found in the oil and gas industry. Offshore wind, liquid biofuels, biomethane, hydrogen fuel, and geothermal energy are all expected to contribute to the energy mix of the future.
Geothermal Energy: The Untapped Potential of Hot Rocks
Among these renewable energy sources, geothermal energy holds immense potential. In the United States, there is a vast resource of heat energy stored in hot rocks deep beneath the Earth’s surface. Unlike other intermittent renewable sources like wind and solar, geothermal energy offers a continuous and reliable source of heat.
Project FORGE: Testing Oil and Gas Technology for Geothermal Energy
To tap into this geothermal energy potential, a project called FORGE (Frontier Observatory for Research in Geothermal Energy) has been initiated by the US Department of Energy (DOE). This project aims to adapt oil and gas drilling technology to extract energy from hot granite rocks deep underground. The ultimate goal is to test the commercial viability of this enhanced geothermal system.
Project RED: Google and Fervo Energy’s Geothermal Power Plant
In 2023, Google partnered with geothermal developer Fervo Energy to launch Project RED, a geothermal power plant supplying 3.5 MegaWatts (MW) of electricity to NV Energy, a Las Vegas utility. This power plant is an important step towards achieving Google’s goal of carbon-free operations for all its offices and data centers by 2030. Project RED harnesses the continuous source of clean energy from geothermal reservoirs and produces minimal greenhouse gas emissions.
Scaling Up Geothermal Energy: Towards a Carbon-Free Future
While geothermal energy currently represents a small fraction of the US energy supply, the DOE believes it has the potential to grow exponentially. In 2022, geothermal energy contributed 3,700 MW, just 0.4% of the total supply. However, the DOE estimates that geothermal energy could eventually provide up to 90,000 MW, thirty times the current capacity, by 2050. This significant increase in geothermal energy production will contribute to a carbon-free future, reducing reliance on fossil fuels and mitigating climate change.
Conclusion
The shift towards renewable energy sources is reshaping the future of the oil and gas industry. Geothermal energy stands out as a promising and untapped resource, offering a continuous and reliable heat source. Projects like FORGE and RED are testing and developing oil and gas technology to extract energy from hot rocks deep underground. With the potential for significant scaling, geothermal energy could play a substantial role in achieving a net-zero emissions world by 2050. As we continue to explore and harness the power of geothermal energy, we move closer to a sustainable and carbon-free future.
Analyst comment
Positive news. Geothermal energy is an untapped resource with immense potential. Projects like FORGE and RED are testing and developing technology to harness this clean and continuous source of energy. As geothermal energy scales up, it could play a substantial role in achieving net-zero emissions by 2050, reshaping the future of the oil and gas industry.
