Abstract

Recently, the prices of oil and gas have sharply risen. As dollars compete for decreasing worldwide reserves and ever increasing worldwide demand, particularly in the China and India sectors, prices will continue to rise over the long-term future. However, the reserves of oil and gas produced in the Permian Basin will continue to decline. This is the natural and inevitable result of the production of a nonrenewable energy resource. Even as domestic companies step up efforts to maximize produced oil and gas reserves, another energy giant quietly sleeps within the Delaware and Val Verde Basins, and in other deep sedimentary basins throughout the world – GEOTHERMAL.

The oil and gas industry has long been aware of regions of both high subsurface temperature and abundant brine water, generally considered by our industry as liabilities. However, these two commodities are of great importance for geothermal energy production. The deepest parts of the Permian Basin (Delaware and Val Verde Basins) have demonstrated bottom hole temperatures in excess of 150°C. These regions display a shallow lognormal and a deep linear temperature gradient that is quite different from those posited by the few past investigations of the area. The geometry of this “thermocline” has significant implications to understanding the thermal history and resources of these Basins. Deep gradients on the order of 30°C/km or higher are common. With proven porosity and permeability, this region has the potential for significant future geothermal production. The current ‘GeoPowering The West’ program of the DOE, targets an increase in electric power production from geothermal energy sources. Such programs will require expansion of efforts into new geological environments in which such energy can be developed. Domestic oil and gas companies with the foresight to plan and develop this untapped resource will be well positioned to take advantage of our increasing energy needs, with potential for excellent return on investment. The question is whether the entrepreneurial spirit that created the oil and gas industry will rise to inaugurate a new geothermal revolution in deep sedimentary basins.