Geothermal energy, abundant in the Earth’s mantle, is the latest renewable energy gracing the sector. Nonetheless, fossil fuel energy companies are adamant about absorbing it into their plans.
Researchers have been operating on the possibility of extracting geothermal heat with diverse technologies to be used raw or after conversion to electricity. This renewable is becoming a center of attraction now that technology is developing and becoming innovative and inventive. The focus on this energy is also because of the developing interest in renewables.
Geothermal energy is currently the best option for oil firms seeking to retain their dominance in the energy sector. Since oil and gas extraction depends on drilling, the oil and gas industry is the most suitable explorer for geothermal energy. This statement is true because this sector has the equipment for such intrusive processes.
The technology required to mine oil and gas is similar to that needed to extract geothermal energy. Therefore, the oil industry must delve into this energy if it genuinely wants to remain relevant in the ongoing revolution to renewables.
However, the oil industry details various reasons why it is yet to explore this line of the venture. One of them is that this period is not favorable to venture any new businesses. The industry stakeholders argue that it is the season to max out on retrenchment while watching out for the pandemic aftereffects. Other stakeholders think that an opportunity has come for the industry to switch to geothermal venture. These contrary opinions are the source of challenges facing the exploration of geothermal energy.
The director of Paetoro Consulting in the UK, Dave Waters, reveals one od of the challenges of venturing geothermal energy is the period required before realizing money from this venture. Waters also noted some excruciating challenges facing this venture in the Pivot2020 conference held last month.
Waters records that it is seemingly quicker to make a considerable sum of money from oil and gas than geothermal energy, which is a challenge. Investors argue that it is prudent to cash in from a short period venture than a significant investment that generates the same profit.
Although geothermal energy seems to be a long-term generator of profits, it will be relevant for the oil industry to venture into this alternative. This move will help the sector remain a going concern since oil from OPEC’s perspective is going out of business. Sage Geosystems, a firm founded by two oil and gas industry experts, reveals that geothermal energy technology is inevitably prone to change since various explorative techniques are uprising.
In conclusion, geothermal energy exploration is slacking because of high initial capital to initiate operations. This cost is pious to bear, given that the rocks and permeability of the Earth’s interior may be impossible. Therefore, it is wise to invest in other renewables like solar and wind, which will always be available.