Can We Repurpose Oil & Gas Wells for Geothermal Energy?
The energy transition is pushing us to rethink how we utilize existing infrastructure. One promising avenue? Repurposing shut-in and unproductive oil & gas wells for geothermal energy extraction. Our latest research, SPE-223990-MS, explores the technical feasibility, economic viability, and challenges of converting these wells into closed-loop geothermal systems in Alberta. Using a combination of analytical models, numerical simulations, and economic analysis, we evaluated subsurface temperature gradients (25–45°C/km), fluid circulation parameters, and economic scenarios including CAPEX, electricity pricing, and carbon tax policy.
Key Takeaways:
- While technically feasible, heat extraction is constrained by conduction limitations
- Higher temperature gradients & longer well laterals improve performance
Economic viability is highly dependent on electricity prices and carbon incentive Alberta alone has 500,000+ inactive wells—a major opportunity for geothermal development! Strategic repurposing could reduce environmental impact while accelerating clean energy adoption. But policy support, funding, and technological advancements are crucial to making this commercially viable.