Oil and Gas Companies Entering the Geothermal Energy Industry Oil and gas companies are becoming increasingly active in geothermal energy. Their involvement includes direct project development, investment in geothermal startups, drilling and well services, engineering, equipment manufacturing, subsurface studies, geothermal heating, and the conversion of abandoned or nonproductive oil and gas wells. At least 80 oil and gas companies have some form of participation in the geothermal sector. When major oil companies, national oil companies, oilfield-service providers, drilling contractors, engineering firms, geoscience companies, equipment manufacturers, investors, and technology startups are included, the number can reasonably exceed 100. This shift is one of the most important developments in the modern geothermal industry. Oil and gas companies already possess many of the skills required to develop geothermal resources, including geological interpretation, seismic imaging, reservoir m...
Oil and Gas Giants Pivot to Geothermal: Investments, Drilling Expertise, Enhanced Systems, Repurposing Wells
Oil and Gas Companies Entering the Geothermal Energy Industry
Oil and gas companies are becoming increasingly active in geothermal energy. Their involvement includes direct project development, investment in geothermal startups, drilling and well services, engineering, equipment manufacturing, subsurface studies, geothermal heating, and the conversion of abandoned or nonproductive oil and gas wells.
At least 80 oil and gas companies have some form of participation in the geothermal sector. When major oil companies, national oil companies, oilfield-service providers, drilling contractors, engineering firms, geoscience companies, equipment manufacturers, investors, and technology startups are included, the number can reasonably exceed 100.
This shift is one of the most important developments in the modern geothermal industry. Oil and gas companies already possess many of the skills required to develop geothermal resources, including geological interpretation, seismic imaging, reservoir modeling, directional drilling, hydraulic stimulation, well completion, fluid management, power-plant construction, and project financing.
The International Energy Agency has identified significant technical and commercial overlap between the oil and gas and geothermal industries. It estimates that approximately two-thirds of investment in conventional geothermal operations has a substantial connection with oil and gas capabilities. For next-generation geothermal technologies, including enhanced geothermal systems, the overlap may exceed three-quarters of the required investment.
The Scale of Oil and Gas Participation
There is no universally accepted database that provides one official number for oil and gas companies involved in geothermal energy. The number depends on how participation is defined.
A narrow definition would count only oil and gas companies that own or operate geothermal power plants. Under this definition, the number would be relatively limited.
A broader definition includes companies involved in:
- Direct geothermal exploration and development.
- Geothermal power generation.
- Geothermal heating and cooling.
- Enhanced geothermal systems.
- Closed-loop geothermal systems.
- Investment in geothermal startups.
- Conversion of abandoned oil and gas wells.
- Drilling and well construction.
- Hydraulic stimulation.
- Reservoir engineering.
- Geological and seismic interpretation.
- Engineering, procurement, and construction.
- Power-generation equipment.
- Technical consulting.
- Geothermal project financing.
- Workforce and technology transfer.
Using this broader definition, more than 80 companies can be identified across the global oil and gas value chain. A practical industry list includes approximately 100 companies with direct or indirect exposure to geothermal energy.
A suitable market statement is:
More than 80 oil and gas companies worldwide are participating in geothermal energy through project development, investment, drilling, engineering, equipment supply, technical partnerships, geothermal heating, or the conversion of oil and gas wells into geothermal assets.
This figure should be presented as an industry estimate rather than an official census. Some companies have direct geothermal projects, while others participate through technical services, investment, research, or strategic partnerships.
Why Oil and Gas Companies Are Interested in Geothermal
Oil and gas companies are interested in geothermal energy because it offers a way to apply existing technical capabilities to a growing clean-energy market.
Oil and gas operations involve locating underground resources, drilling deep wells, controlling high-pressure fluids, managing reservoirs, and transporting energy to customers. Geothermal projects require many of the same activities, although the objective is to extract heat rather than hydrocarbons.
The IEA notes that geothermal project development involves subsurface evaluation, modeling, drilling, surface operations, production monitoring, and facility management,all areas with strong similarities to upstream oil and gas operations.
Oil and gas companies are also under pressure to diversify. Energy-transition policies, investor expectations, emissions targets, and changing market conditions are encouraging traditional hydrocarbon companies to develop lower-carbon business lines.
Geothermal energy is particularly attractive because it can provide electricity and heat continuously. Unlike solar and wind projects, geothermal facilities are not dependent on sunlight or wind conditions. This makes geothermal valuable for grid stability, industrial heat, district heating, and other applications that require reliable energy.
The main reasons for oil and gas participation include:
- Access to a large and growing clean-energy market.
- Reuse of drilling equipment and technical knowledge.
- New revenue from mature or abandoned wells.
- Opportunities to reduce corporate emissions.
- Demand for reliable renewable electricity.
- Expansion into geothermal heating and cooling.
- Potential access to energy-storage markets.
- Opportunities to support industrial decarbonization.
- Strong technical overlap with existing operations.
- New investment opportunities in geothermal technology.
Major International Oil Companies
The largest international oil companies are exploring geothermal energy through research, investment, partnerships, feasibility studies, and technology development.
Chevron
Chevron is one of the most visible oil and gas companies associated with geothermal energy. The company has a long history of geothermal involvement and previously operated geothermal assets in Indonesia and the Philippines.
Chevron sold its geothermal operations in 2017, but its technical and strategic interest in geothermal has continued. The company has investigated new geothermal technologies and participated in discussions regarding advanced geothermal systems.
Chevron’s subsurface expertise includes geological interpretation, drilling, reservoir modeling, high-temperature operations, and large-scale project development. These capabilities are applicable to enhanced geothermal systems and other next-generation technologies.
Chevron’s interest is also important because it demonstrates that major oil companies can approach geothermal through more than one pathway. A company may operate conventional geothermal plants, invest in startups, participate in research, or use oilfield technologies to support geothermal developers.
BP
BP has supported geothermal energy through investment and technology partnerships. The company has invested in Eavor Technologies, a Canadian geothermal company developing closed-loop geothermal systems.
Closed-loop geothermal systems circulate fluid through underground well networks. Unlike conventional hydrothermal projects, they do not depend entirely on naturally permeable rock or naturally occurring underground fluids.
BP’s interest in Eavor reflects the oil and gas industry’s attraction to technologies that use drilling, well design, thermal modeling, and subsurface engineering. Closed-loop systems could also make geothermal development possible in regions without conventional high-permeability geothermal reservoirs.
Shell
Shell has investigated geothermal energy, subsurface heat, and low-carbon industrial applications. The company has experience in drilling, reservoir management, offshore engineering, project finance, and energy infrastructure.
Shell’s potential role in geothermal extends beyond power generation. Geothermal heat could be used for district heating, industrial processes, greenhouses, hydrogen production, and commercial buildings.
Industrial heat is an especially important opportunity. Many industrial facilities require continuous heat, and geothermal resources could help reduce the use of natural gas and other fossil fuels.
ExxonMobil
ExxonMobil has extensive experience in deep drilling, high-temperature operations, geoscience, reservoir engineering, and complex energy projects. These capabilities are relevant to enhanced geothermal systems and deep geothermal exploration.
Advanced geothermal technologies seek to access heat at greater depths or create engineered reservoirs in hot rock. ExxonMobil’s experience with challenging subsurface environments could help address the technical problems associated with deep wells, high temperatures, well integrity, and fluid circulation.
TotalEnergies
TotalEnergies has expanded its activities in renewable energy and low-carbon technologies. Geothermal energy is relevant to its portfolio because it can provide firm electricity, low-carbon heat, and energy for industrial consumers.
The company’s capabilities in drilling, offshore engineering, project management, and international energy development could be applied to geothermal projects in different geological and commercial environments.
TotalEnergies may also find geothermal attractive as part of integrated energy projects that combine geothermal electricity, hydrogen, industrial production, storage, and carbon-management systems.
Equinor
Equinor has investigated geothermal energy as part of its wider energy-transition activities. The company possesses expertise in offshore drilling, geological interpretation, reservoir engineering, subsea systems, and complex infrastructure.
Equinor’s capabilities may be particularly relevant to offshore geothermal development and deep geothermal projects. Offshore geothermal remains an emerging opportunity, but oil and gas companies have many of the technical skills required to operate in deepwater environments.
Eni
Eni has participated in research and innovation relating to geothermal energy and subsurface resources. Its capabilities include geological interpretation, drilling, reservoir modeling, energy infrastructure, and technology development.
Geothermal energy may support Eni’s broader objectives in industrial decarbonization and low-carbon energy supply. The company could contribute to geothermal projects through direct development, partnerships, or technical support.
Repsol
Repsol has explored low-carbon technologies and subsurface energy applications. Geothermal is relevant to the company because its geological, drilling, and reservoir-management skills can be applied to both conventional and advanced geothermal projects.
The company’s expertise may also be useful in countries where geothermal development requires integrated geological surveys, drilling programs, project engineering, and energy-market planning.
OMV
OMV is a significant example of an oil and gas company participating in geothermal through strategic investment. The company has invested in Eavor Technologies.
OMV’s investment demonstrates the importance of corporate venture capital in geothermal. Instead of developing a geothermal project independently, an oil and gas company can invest in an emerging technology and help it access technical expertise, capital, and commercial partners.
National Oil Companies and Geothermal Development
National oil companies are also becoming involved in geothermal energy. Their participation can be especially important in emerging markets, where governments are seeking domestic energy resources and lower-carbon alternatives to imported fuels.
Pertamina
Pertamina is one of the strongest examples of an oil and gas company with direct geothermal activity. Through Pertamina Geothermal Energy, the company has developed and operated geothermal projects in Indonesia.
Indonesia has some of the world’s largest geothermal resources because it lies along the Pacific Ring of Fire. The country’s volcanic geology creates significant potential for geothermal power generation.
Pertamina’s experience in drilling, energy infrastructure, project management, and resource development supports its geothermal operations. Its participation also demonstrates that national oil companies can become major geothermal developers rather than limiting themselves to technical services.
ADNOC
The Abu Dhabi National Oil Company has explored geothermal opportunities with partners including Masdar. In the United Arab Emirates, geothermal energy may be particularly relevant to cooling, district energy, and industrial applications.
The Middle East has high demand for cooling and substantial experience with deep drilling and subsurface engineering. Advanced geothermal systems could potentially provide low-carbon heat or cooling in selected locations.
Saudi Aramco
Saudi Aramco has substantial experience in geology, reservoir engineering, drilling, high-temperature operations, and energy research. These capabilities can support geothermal exploration and technology development.
The company’s interest in geothermal would also align with Saudi Arabia’s wider objectives of economic diversification, industrial development, and lower-carbon energy production.
ONGC
India’s Oil and Natural Gas Corporation has examined geothermal resources and hot-spring areas. India has geothermal potential across several regions, although commercial development requires further exploration, resource confirmation, and suitable infrastructure.
ONGC’s geological and drilling expertise could support geothermal projects for electricity generation, agricultural heating, food processing, aquaculture, and local industrial applications.
Oil India
Oil India has considered geothermal energy and other renewable-energy opportunities. Its experience with drilling, subsurface mapping, and well operations is relevant to geothermal exploration and abandoned-well conversion.
Sinopec
Sinopec is an important participant in China’s geothermal heating sector. China has developed large-scale geothermal heating projects for residential, commercial, and urban applications.
Sinopec’s activities demonstrate that oil and gas companies can participate in geothermal through direct-use heat rather than focusing only on electricity generation. Geothermal heating projects may be developed near population centers and industrial customers, reducing the need for long-distance electricity transmission.
China National Petroleum Corporation
CNPC has expertise in drilling, geothermal heating, subsurface engineering, and energy infrastructure. China’s strong demand for cleaner urban heating creates a substantial opportunity for oil and gas companies with relevant skills.
Japan Petroleum Exploration
Japan Petroleum Exploration has experience in exploration, drilling, and subsurface resource development. These capabilities are applicable to geothermal projects in Japan and other countries.
Japan has considerable geothermal potential but also faces regulatory, land-use, and community challenges. Oil and gas expertise can support technical evaluation, but successful geothermal development also requires cooperation with local communities and other land users.
Oilfield-Service Companies in Geothermal
Oilfield-service companies may become some of the most important beneficiaries of geothermal growth. They supply drilling tools, well-completion systems, cementing services, stimulation technologies, monitoring equipment, and reservoir-management solutions.
Baker Hughes
Baker Hughes is one of the leading oilfield-service and energy-technology companies involved in geothermal. Its capabilities include drilling, well construction, turbines, geothermal power equipment, reservoir services, and high-temperature technologies.
The company is leading the Wells2Watts consortium, a private industrial partnership involving Baker Hughes, Continental Resources, INPEX, and Chesapeake Energy. The consortium is exploring how nonproductive oil and gas wells and dry geothermal wells can be converted into geothermal assets capable of producing renewable electricity.
Wells2Watts is important because it focuses on an existing asset base. Instead of drilling entirely new wells, the project seeks to understand how old wells can be retrofitted, modified, or connected to closed-loop geothermal systems.
Baker Hughes has also worked with Cairn Oil & Gas in India on a project designed to extract geothermal energy from hydrocarbon wells. The project was expected to produce approximately 2.4 megawatts of geothermal power.
SLB
SLB has extensive experience in drilling, reservoir characterization, hydraulic stimulation, well intervention, digital monitoring, and subsurface modeling.
The company’s technologies can help geothermal developers evaluate resources, design wells, manage reservoirs, and monitor production. These services may be useful for conventional geothermal projects and enhanced geothermal systems.
Halliburton
Halliburton has provided drilling, cementing, stimulation, well-completion, and reservoir services to geothermal operators. Its experience in high-temperature and high-pressure wells is directly relevant to geothermal development.
Geothermal wells may experience scaling, corrosion, high temperatures, difficult formations, and complex pressure behavior. Halliburton’s oilfield technologies can help address these challenges.
NOV
NOV manufactures drilling equipment, completion tools, well systems, and industrial technologies. Its products can support geothermal developers and contractors seeking to improve drilling efficiency and well reliability.
Weatherford
Weatherford supplies well-construction, intervention, monitoring, production, and reservoir technologies. These services can support geothermal well development and the management of mature geothermal fields.
Nabors Industries
Nabors Industries is a major land-drilling company with experience in rig operations, automation, drilling optimization, and advanced well construction.
The company has supported geothermal ventures and energy-transition technologies. Its role highlights the importance of drilling productivity in geothermal development, where the cost and duration of drilling can determine whether a project is commercially viable.
Helmerich & Payne
Helmerich & Payne is a drilling contractor with extensive land-drilling experience. The company has supported geothermal activities, including investments connected with advanced geothermal development.
Patterson-UTI Energy
Patterson-UTI provides land-drilling services and drilling technology. Its capabilities may be adapted to geothermal projects, particularly in areas with established oil and gas infrastructure.
Precision Drilling
Precision Drilling has experience in rig operations and well construction. Its equipment and workforce may support geothermal projects in North America and other markets with active drilling industries.
Transocean
Transocean is known for deepwater drilling and offshore operations. Its capabilities could become relevant if offshore geothermal projects expand.
Offshore geothermal is still developing, but the concept may involve extracting heat from seabed formations or using offshore platforms and subsea infrastructure.
Noble Corporation, Seadrill, and Valaris
Noble Corporation, Seadrill, and Valaris possess offshore drilling capabilities that could support future geothermal development. These companies may provide equipment, operational expertise, and drilling services for deep or offshore geothermal projects.
Geothermal Startups With Oil and Gas Expertise
Several geothermal startups were founded or developed by professionals from the oil and gas industry. These companies are adapting petroleum technologies to geothermal applications.
Fervo Energy
Fervo Energy is one of the most prominent enhanced geothermal companies. Its technology uses horizontal drilling and hydraulic stimulation methods associated with shale oil and gas development.
The company seeks to create engineered geothermal reservoirs in hot rock. Horizontal wells can increase contact with the underground heat source, while stimulation can improve fluid circulation.
Fervo’s model shows how the shale revolution can influence geothermal energy. Techniques that transformed oil and gas production may also help make geothermal resources available in new locations.
Devon Energy invested in Fervo Energy and collaborated on horizontal-drilling applications. Helmerich & Payne has also supported advanced geothermal activities associated with the sector.
Eavor Technologies
Eavor is developing a closed-loop geothermal system. Its design circulates fluid through a sealed underground well network, allowing heat to be extracted without depending entirely on natural geothermal permeability.
The company has received investment from BP, OMV, and other partners. Closed-loop systems are attractive because they could be deployed in a wider range of locations than conventional hydrothermal projects.
Sage Geosystems
Sage Geosystems was established by professionals with significant oil and gas experience. The company is developing pressure geothermal technology that can combine heat production with underground energy storage.
This approach could allow geothermal projects to provide firm electricity and grid-balancing services. Storage capability may become increasingly valuable as electricity systems add large amounts of intermittent solar and wind generation.
Quaise Energy
Quaise Energy is developing millimeter-wave drilling technology designed to access very deep and extremely hot geological formations.
Ultra-deep geothermal development could potentially expand the resource base far beyond conventional geothermal areas. However, the technology still faces major technical, economic, and commercial challenges.
GreenFire Energy
GreenFire Energy develops closed-loop geothermal technology and has worked with oilfield-service companies. Its systems are designed to produce geothermal energy from difficult or low-productivity wells.
The company’s work is relevant to oil and gas operators that want to convert nonproductive assets into geothermal projects.
Engineering, Geoscience, and Construction Companies
Oil and gas companies are not the only businesses contributing to geothermal development. Engineering, geoscience, construction, and consulting companies also play important roles.
TechnipFMC
TechnipFMC provides engineering, subsea, project-management, and energy-infrastructure capabilities. Its expertise may support large geothermal projects, including offshore and complex deep-well developments.
Saipem
Saipem has experience in drilling, construction, engineering, and energy infrastructure. These capabilities are relevant to geothermal projects that require integrated design and construction services.
Worley
Worley provides engineering, procurement, project management, and consulting services across the energy sector. Its geothermal role may include feasibility studies, project design, drilling plans, power-plant development, and operational support.
Wood Group
Wood Group has long-standing experience in oil and gas engineering, facilities, subsea systems, and project management. These skills can be applied to geothermal development and energy-transition projects.
Petrofac
Petrofac provides engineering and project-management services for the energy industry. Its experience may support geothermal projects that require detailed technical design and execution planning.
Aker Solutions
Aker Solutions has capabilities in offshore engineering, subsea technology, industrial infrastructure, and energy-transition projects. The company may contribute to offshore geothermal and deep geothermal developments.
CGG and Viridien
CGG and Viridien provide geoscience, seismic interpretation, subsurface imaging, and geological analysis. These services can help geothermal developers identify faults, heat sources, reservoirs, and drilling targets.
TGS
TGS supplies subsurface data, geological interpretation, and resource information. Its data can support geothermal exploration and reduce uncertainty during the early stages of project development.
RPS Energy
RPS Energy provides consulting services in geology, engineering, energy development, and project evaluation. Its capabilities can help investors assess geothermal resources, technical risks, environmental requirements, and commercial feasibility.
Power Equipment and Industrial Technology Companies
Geothermal projects require reliable power-generation equipment, electrical systems, control technologies, cooling systems, and grid connections.
GE Vernova
GE Vernova supplies turbines, generators, controls, and grid technologies. Its experience in power generation is relevant to geothermal plants, especially large facilities that require stable and efficient electricity production.
Siemens Energy
Siemens Energy provides turbines, generators, electrical equipment, grid systems, and industrial energy technologies. These products can support geothermal power generation and integration into national electricity networks.
Mitsubishi Heavy Industries
Mitsubishi Heavy Industries manufactures turbines and power-generation equipment used in geothermal plants. Japanese engineering companies have long contributed to geothermal technology, especially in countries with volcanic resources.
Baker Hughes
Baker Hughes operates across several parts of the geothermal value chain, including drilling services, well technologies, turbines, power equipment, and subsurface solutions. This diversified position gives it exposure to both conventional and advanced geothermal development.
Repurposing Abandoned Oil and Gas Wells
The conversion of abandoned or nonproductive oil and gas wells is one of the most promising areas of cooperation between the two industries.
Thousands of oil and gas wells exist across North America, Europe, Asia, Africa, the Middle East, and Latin America. Some are no longer economically productive but may have sufficient temperature or depth to support geothermal applications.
Repurposing these wells could create value from existing assets. Potential advantages include:
- Lower exploration costs.
- Existing well records.
- Existing roads and surface infrastructure.
- Potential grid connections.
- Reduced drilling requirements.
- Lower land disturbance.
- New revenue from mature assets.
- Reduced abandonment liabilities.
However, well conversion is not automatically economical. Developers must assess well depth, temperature, casing condition, cement integrity, permeability, fluid chemistry, expected flow rate, and proximity to electricity or heat consumers.
Some wells may be better suited to direct heat than electricity generation. For example, a moderate-temperature well could provide heat for agriculture, aquaculture, food processing, greenhouses, or district heating even if it cannot support an efficient power plant.
The Wells2Watts consortium is an example of an organized industry effort to investigate this opportunity. Its participating companies are examining how oil and gas wells can be retrofitted for geothermal use and how closed-loop systems can contribute to renewable power generation.
Technology Transfer From Oil and Gas
Oil and gas companies can contribute several important technologies to geothermal energy.
Directional and Horizontal Drilling
Directional drilling allows operators to reach underground targets from a single surface location. Horizontal drilling can increase contact with hot rock and improve reservoir development.
These techniques are especially important for enhanced geothermal systems, where developers may need to connect injection and production wells through engineered fracture networks.
Hydraulic Stimulation
Hydraulic stimulation can increase permeability in hot rock and improve fluid circulation. This technique was refined in shale oil and gas development but must be adapted to geothermal conditions.
Geothermal stimulation requires careful monitoring because pressure changes can activate existing faults and cause induced seismicity.
Reservoir Modeling
Oil and gas companies have developed advanced models for predicting fluid movement, pressure behavior, reservoir response, and production decline.
Similar models can help geothermal operators determine how heat and fluid will move through underground formations. Better modeling can reduce drilling risk and improve long-term production forecasting.
Well Completion
Geothermal wells require specialized casing, cementing, liners, seals, pumps, and completion systems. Oilfield-service companies can adapt existing technologies for high-temperature geothermal conditions.
Monitoring and Digital Systems
Fiber-optic cables, downhole sensors, seismic monitoring, and real-time data systems can help operators understand geothermal reservoirs.
Digital twins may also improve operational performance by combining geological data, well information, plant output, maintenance records, and financial forecasts in one integrated model.
High-Temperature Materials
Geothermal fluids can be chemically aggressive and may cause scaling or corrosion. Oil and gas suppliers have experience developing materials and equipment for high-temperature, high-pressure conditions.
Commercial Models for Industry Participation
Oil and gas companies can enter geothermal through several business models.
Direct Geothermal Ownership
A company may develop, own, and operate geothermal power plants or heating systems. This approach provides control over the asset but requires significant capital and long-term operational commitment.
Strategic Investment
A company may invest in a geothermal startup or technology provider. This model offers exposure to future growth while limiting direct operational risk.
Joint Ventures
Joint ventures allow oil and gas companies to combine technical expertise with geothermal developers, utilities, governments, or local infrastructure partners.
Technology Licensing
Oilfield-service companies can license drilling, stimulation, monitoring, and reservoir technologies to geothermal developers.
Service Provision
Drilling contractors, engineering firms, seismic companies, and equipment manufacturers can support geothermal projects without owning the underlying assets.
Oil and gas companies can convert selected wells into geothermal assets. This model is particularly relevant for mature fields and regions with extensive existing hydrocarbon infrastructure.
Investment Opportunities in Geothermal
The geothermal sector offers several investment opportunities for oil and gas companies and other energy investors.
The first is utility-scale geothermal electricity. Geothermal plants can supply stable power and operate at high capacity factors.
The second is geothermal heating. Direct-use projects can serve district heating networks, greenhouses, industrial facilities, hotels, hospitals, and commercial buildings.
The third is enhanced geothermal systems. These projects seek to create artificial reservoirs in hot rock and could significantly expand geothermal deployment.
The fourth is closed-loop geothermal. Closed-loop systems may be suitable for regions where natural geothermal fluid circulation is limited.
The fifth is geothermal energy storage. Pressure geothermal and related technologies may store energy underground and provide electricity during periods of high demand.
The sixth is industrial decarbonization. Geothermal heat could support hydrogen production, mineral processing, food production, data centers, and other energy-intensive industries.
The seventh is abandoned-well conversion. Existing hydrocarbon wells may provide a lower-cost entry point into geothermal markets, although each project requires careful technical evaluation.
Challenges and Risks
Oil and gas expertise can help geothermal development, but it does not eliminate the sector’s risks.
Exploration Risk
A geothermal well can cost millions of dollars and may fail to deliver a commercially useful flow rate. Better geological surveys, improved modeling, and risk-sharing mechanisms are required.
Capital Intensity
Geothermal projects require large upfront investment before revenues begin. Investors may need to support long development periods, permitting, drilling, testing, and plant construction.
Drilling Costs
Drilling remains one of the largest cost components in geothermal development. High temperatures, hard rock, lost circulation, corrosion, and difficult formations can increase costs and delays.
Induced Seismicity
Enhanced geothermal systems may trigger small earthquakes when underground formations are stimulated. Developers must conduct geological assessments, monitor seismic activity, and maintain transparent relationships with surrounding communities.
Fluid Chemistry
Geothermal fluids may contain minerals and gases that cause scaling, corrosion, and equipment damage. Operators must manage reinjection, treatment, and environmental protection.
Regulatory Uncertainty
Some countries have mature oil and gas regulations but limited geothermal frameworks. Unclear licensing rules, water rights, drilling regulations, and environmental requirements can delay projects.
Market Access
A geothermal project may be technically successful but commercially difficult if it is far from the electricity grid or heat customers. Developers must evaluate offtake arrangements early.
Oil and gas workers have valuable transferable skills, but geothermal projects also require specialized knowledge in heat extraction, reinjection, geothermal chemistry, and power-plant management.
The Future of Oil and Gas Participation
Oil and gas involvement in geothermal energy is likely to increase as advanced technologies improve and governments seek reliable low-carbon energy.
The strongest growth areas may include:
- Enhanced geothermal systems.
- Closed-loop geothermal.
- Geothermal heating.
- Repurposing abandoned wells.
- Geothermal energy storage.
- Deep and ultra-deep drilling.
- Offshore geothermal.
- Industrial geothermal heat.
- Digital geothermal operations.
- Hybrid geothermal and hydrogen projects.
The oil and gas industry can help geothermal developers reduce costs by transferring knowledge, sharing equipment, improving drilling productivity, and strengthening supply chains.
The IEA estimates that extensive knowledge transfer and productivity gains could reduce conventional geothermal technology costs by up to 50% and next-generation geothermal costs by nearly 80% under favorable conditions.
This does not mean that every geothermal project will achieve those reductions. Project geology, market conditions, regulation, financing costs, and local infrastructure will remain important. Nevertheless, the estimate demonstrates the potential economic value of cooperation between the two sectors.
Conclusion
More than 80 oil and gas companies are involved in geothermal energy, and a broader industry mapping identifies approximately 100 companies with direct or indirect participation.
Their activities include geothermal project development, startup investment, drilling, hydraulic stimulation, reservoir modeling, seismic analysis, well conversion, engineering, power-generation equipment, geothermal heating, and technical consulting.
Chevron, BP, Shell, TotalEnergies, Equinor, Eni, Repsol, OMV, Pertamina, ADNOC, Saudi Aramco, Sinopec, Baker Hughes, SLB, Halliburton, Nabors, Devon Energy, and many other companies demonstrate the breadth of participation.
The relationship between oil and gas and geothermal energy is based on more than corporate diversification. It is supported by genuine technical overlap. Oil and gas companies understand the subsurface, operate drilling equipment, manage wells, interpret geological data, construct energy infrastructure, and finance complex projects.
Geothermal companies can benefit from this experience, particularly as the industry moves toward enhanced geothermal systems, closed-loop designs, geothermal storage, and abandoned-well conversion.
The future geothermal industry will likely include a combination of traditional geothermal developers, oil and gas majors, national oil companies, oilfield-service providers, drilling contractors, engineering firms, technology startups, utilities, investors, and government agencies.
For investors, geothermal represents an opportunity to support reliable renewable electricity and low-carbon heat. For oil and gas companies, it offers a pathway to use existing skills and assets in a growing clean-energy market. For governments, the partnership can accelerate technology transfer, create skilled employment, strengthen domestic energy security, and support emissions-reduction goals.
The number of oil and gas companies entering geothermal is therefore likely to continue increasing. The most successful participants will be those that combine subsurface expertise with disciplined project development, strong environmental standards, reliable customers, effective financing, and long-term commitment to geothermal energy.
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