US Geothermal Tax Credits in 2026: What Is Actually Still Alive After OBBBA For an industry that spent more than a decade building financial models around a stable federal incentive structure, 2026 has been a year of whiplash. The 30% federal geothermal tax credit that developers and homeowners built forecasts around is gone in one form and still alive in another, and even the IRS’s own public guidance has been confusing enough to trigger uncertainty across the market. That confusion is not a minor clerical issue. It is shaping investment decisions, contractor sales pitches, homeowner timelines, and project finance assumptions right now. If you work in geothermal, the key question is no longer whether federal incentives exist, but which incentive applies, to which project type, and under what ownership structure. The law that changed the timeline To understand where things stand in 2026, you have to start with the Inflation Reduction Act of 2022, which created a long runway for clean e...
Oil Giant Goes Deep for Clean Heat: Occidental Drills 4 Miles Underground in Colorado – Fastest Superduper Geothermal Well Yet
The Quiet Revolution Underground: How an Oil Giant Drilled 4 Miles Deep for Geothermal Heat And What It Means for the Future of Clean Energy
By: Robert Buluma
Date:March 6, 2026
Imagine this: In the flat, oil-soaked plains of Weld County, Colorado—where drilling rigs have long been synonymous with fossil fuels—a massive rig rises quietly last spring. No fanfare, no press releases blasting headlines. Just Occidental Petroleum (Oxy), the oil behemoth better known for pumping black gold, sinking twin boreholes nearly four miles (about 20,000 feet) into the Earth. Not for oil or gas this time—but for something far more revolutionary: limitless, carbon-free heat from the planet's depths.
Completed in under six weeks starting April 2025, this secretive project—dubbed GLADE (Geothermal Limitless Approach to Drilling Efficiencies)—has sent ripples through the geothermal world. Backed by a $9 million U.S. Department of Energy grant from 2022, GLADE wasn't about extracting hydrocarbons. It was a bold test: Can oil-and-gas expertise slash the time and cost of superdeep geothermal wells? The answer, emerging now from unsealed state records and expert commentary, is a resounding yes. And it could unlock geothermal energy almost anywhere on Earth.
The Hidden Drilling Feat That Shocked Experts
Oxy kept things low-key. The company declined interviews, released no flashy updates, and let the rig do the talking. But Colorado regulators' documents, unsealed in early 2026, tell an astonishing story. Drilling kicked off in April 2025 near a natural gas plant south of Greeley. In less than six weeks, crews bored two parallel wells to depths approaching 20,000 feet—one in just 18 days.
That's blistering speed for such extreme conditions. High pressure, scorching temperatures, and abrasive rock typically slow superdeep projects to a crawl. Yet Oxy averaged rates that rival—or match—the best in the young enhanced geothermal systems (EGS) sector. Stanford Geothermal Program director Roland Horne called it "pretty impressive," comparing the pace directly to Fervo Energy's 16,000-foot well in Utah drilled in 16 days last year.
Bottom-hole temperatures likely topped 450°F (230°C+), hot enough for electricity generation in a closed-loop or EGS setup. The concept is elegant: Circulate fluid down one well, let it absorb heat from hot rock, bring it up the other to spin turbines—24/7, baseload power with zero emissions. No need for volcanic hotspots like Iceland or The Geysers in California. Just deep enough drilling.
Amanda Kolker, geothermal lab manager at the National Renewable Energy Laboratory (NREL) in Golden, hailed it as proof that sedimentary basins—like the Denver-Julesburg Basin where GLADE sits—can host viable geothermal. "This achievement could unlock new geographies for geothermal technology deployment in the United States," she said.
Why Oil Companies Are the Unexpected Heroes of Geothermal
Geothermal has always been the sleeping giant of renewables. It supplies steady, weather-independent power with tiny land footprints, yet it meets less than 1% of global electricity today. The International Energy Agency warns we've barely scratched the potential: With advanced drilling, geothermal could theoretically cover global demand 140 times over.
The bottleneck? Depth equals heat, but depth equals difficulty. Traditional geothermal sticks to shallow, naturally hot zones. To go "anywhere," you need to drill 7+ kilometers deep—where Soviet-era Kola Superdeep Borehole took nearly 20 years to reach 12 km. Modern oil tech changes the game.
Hydraulic fracturing, horizontal drilling, real-time optimization—the toolkit Oxy and peers perfected in shale booms—transfers beautifully to geothermal. GLADE proved it: Faster rates, lower costs, safer ops in high-temperature/high-pressure hell. Experts see "synergies" everywhere: Same rigs, crews, supply chains. As Michael Rigby of Colorado's Energy and Carbon Management Commission notes, oil firms await a "signal" that pivoting pays off.
Oxy's not alone. Fervo's rapid progress, Chevron's investments, and DOE's $171.5 million in recent next-gen geothermal funding show momentum building. But GLADE stands out: An oil major didn't just theorize—it drilled. Deep. Fast.
Could This Birth Colorado's First Geothermal Power Plant?
Colorado has underground heat aplenty, yet no commercial geothermal power plant exists. Past efforts near Buena Vista stalled amid local opposition over noise and hot springs. GLADE's rural Weld County site—surrounded by oil infrastructure—avoids those pitfalls. It aligns with Gov. Jared Polis's push: New subsidies, streamlined permitting.
A 2024 NREL analysis estimated GLADE could yield 2.2 MW—enough for a small community or industrial site. Oxy's pre-drilling notice to locals mentioned linking wells, circulating fluid, and possibly designing a "small test plant" for electricity. Spokesperson Jennifer Brice calls it a "test plant" (not full power plant), with "no decisions made" yet. But the pieces are there.
Success here could spark a wave. Imagine oil towns repurposing rigs for clean heat, creating jobs in transition, slashing emissions. It's poetic: The industry long blamed for climate change helping solve it.
The Bigger Picture: Geothermal's Limitless Future
GLADE isn't just a Colorado story—it's a blueprint. If oil tech conquers superdeep barriers, geothermal becomes ubiquitous. No rare resources needed. Baseload renewables everywhere. Energy independence. Climate progress.
Challenges remain: Water use in closed loops, seismic risks from fracking, upfront costs. But GLADE's speed and depth prove feasibility. As Horne says, "It's very promising to see an oil company actually jump in with a drill bit instead of standing around thinking about it."
In a world racing toward net-zero, quiet breakthroughs like this matter most. Oxy's hidden four-mile plunge reminds us: The future of energy isn't always announced with trumpets. Sometimes it's drilled in silence, mile after mile, toward heat that could power tomorrow.
What do you think—will we see GLADE evolve into a full power plant? Or inspire a dozen copycats? Drop your thoughts below. More geothermal frontiers coming soon!
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