The Application of Petroleum Engineering to Geothermal Development (e7fcbc76-2142-4a2c-aab2-ba67a895a85b)

Anyone with geothermal experience can readily attest that geothermal operations are a natural extension of oil and gas operations. A geothermal company and an oil company need the same type of people to do the same kind of work. In the geothermal industry, geologists and geophysicists define prospects through surface geology, analysis of surface seeps, magnetics, gravity, and resistivity surveys - techniques similar to those used in the petroleum industry. In addition, shallow (250-ft) temperature gradient holes often are used in geothermal operations. Landmen take geothermal leases that are patterned after oil and gas leases. Exploratory drilling is done with the same drilling contractors and same drilling rigs, with minor modification. Drilling foremen and drilling engineers share the same objective of making the most hole, in the shortest time, at the least cost, with a proper completion. Petroleum engineers test the wells, design the completions, determine the reserves, make economic calculations, work with the tax assessor, and manage the reservoirs. Production engineers build roads, locations and pipelines, install gas/liquid separators and meters, and operate production and injection facilities. A contract to sell steam to a public utility is required. Various governmental regulations, permits, environmental concerns, and public affairs pose similar problems in both industries. Also required of both are top management people who are acquainted with geologic risk, prepared to accept million dollar dry holes, willing to bid competitively at lease sales, and able to invest large sums based on a technology not yet fully proven. Successful geothermal development requires in-depth financial ability similar to that required for petroleum development. A high capital investment is required early for leases, geological and geophysical work, and exploratory and confirmation drilling. After