Overlapping competencies in the oil and gas and geothermal industries
A number of skills, data, technology and supply chain elements are transferrable between the oil and gas and geothermal sectors for both conventional and next‑generation technologies, and many of the staff in geothermal companies today were formerly oil and gas workers. Developing new geothermal projects requires subsurface evaluation, modelling, drilling and surface operations, similar processes to those used in many upstream oil and gas projects. Oil and gas service companies are becoming increasingly engaged in the technology, design and workflow aspects of geothermal asset development. The oil and gas industry most often produces oil from reservoirs up to 4 kilometres (km) depth, and it is increasingly targeting deeper zones that contain very large geothermal potential.

Oil and gas industry expertise and resources could be particularly important for the development of next-generation geothermal technologies: indeed, enhanced geothermal systems (EGSs) rely on well stimulation, including hydraulic fracturing and directional drilling techniques that were refined for shale gas and tight oil operations in the United States. Advanced geothermal systems (AGSs) similarly rely on high-precision directional drilling to create closed-loop systems deep in the Earth's subsurface. Both conventional and next-generation geothermal projects depend on highly specialised systems and equipment to manage the high‑pressure high-temperature environments required to generate sufficient geothermal power and heat outputs.

Regarding operations, many techniques to optimise geothermal output, monitor facility integrity, improve safety and repeatability, and intervene in well underperformance are built on practices from oil and gas operations. The stringent health, safety and environmental management practices of the oil and gas industry, as well as its design and engineering principles, would also be of great benefit to next-generation geothermal projects. The industry is also well placed to participate in the research and development needed to develop next-generation materials, chemicals and stimulation techniques.

Some of the largest overlaps between the skills and expertise of the oil and gas industry and geothermal projects apply to project evaluation, planning and management; drilling and completion; surface facility construction and maintenance; and operations and production monitoring. After examining all investment components involved in these stages in detail, we estimate that an average of around two-thirds of every dollar invested in conventional geothermal operations has a significant overlap with the oil and gas industry. For next‑generation geothermal technologies, we estimate that more than three‑quarters of the required investment is closely related to oil and gas industry skills and expertise.
Source: IEA