Texas-focused geothermal trade group launches with big energy backers

Nabors Industries

12/01/2022 11:00

By Liz Hampton
    Jan 12 (Reuters) - A trade group seeking to promote
geothermal energy in Texas will launch on Thursday with backing
from large oil and utility firms seeking to transform their
businesses.
    The Texas Geothermal Energy Alliance (TxGEA) was organized
as many fossil fuel giants and startup companies look to
transition to low-carbon energy from oil and gas. The group
includes Halliburton  HAL.N , Repsol  REP.MC , Chevron Corp
 CVX.N , Baker Hughes  BKR.N , CenterPoint Energy  CNP.N  and
GeothermEx, a Schlumberger company.
    The former chairman of the state's public utility and energy
regulatory boards, Barry Smitherman, spearheaded the group's
formation. Texas is the largest oil- and gas-producing state. 
    "Decision makers and thought leaders are interested in a
resource that is clean, renewable and dispatchable - that is
what has piqued everyone's interest," said Smitherman. He added
that the group's short-term focus will be education and
advocacy. 
    Geothermal technology employs much of the same drilling
technologies used in the oil and gas sector, although the wells
are designed differently. One member, Nabors Industries, a
drilling firm, is already eying geothermal as a business
opportunity.
    Smitherman said service companies see this as another way to
use their technology, workforce and skill set. 
    There are many geothermal projects currently under way in
the United States, which could usher in greater scale for an
industry that does not yet easily compete with cheaper oil and
gas. 
    Geothermal accounts for less than 1% of global utility-scale
electricity generation because it is geologically limited,
according to TxGEA member Sage Geosystems. 
    The United States has about 3.5 gigawatts of geothermal
capacity currently installed. 

 (Reporting by Liz Hampton in Denver; Editing by Cynthia
Osterman)
 ((Liz.Hampton@thomsonreuters.com; +1 832 571 8115; Reuters
Messaging: Reuters Messaging: liz.hampton.reuters@reuters.net))