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Bd. 1 (2023): GeoTHERM Journal

Why should Oil and Gas go Geothermal? A Risk Assessment

September 11, 2023


Rapid climate change and the aim to achieve the 1.5 degrees Celsius target mean that the business model of the Oil and Gas industry (O+G) is becoming risky. The energy sector accounts for more than 70 % of global CO2 emissions and if the use of oil, gas and coal stopped tomorrow, we would have solved the climate crisis, but would have a giant economic crisis.

Preventing both, an economic and a climate crisis, there is a solution:

O+G could transform its business model naturally by turning into the geothermal sector, which is in its geological skill and its assets very close to O+G. O+G could also provide the urgently needed financing for geothermal energy.

However, the Oil and Gas companies are still hesitant to undergo a radical transformation, possibly underestimating the strong climate-friendly policies against their traditional business model, which can be brought about by the radical climate changes already in the 2030s.

Germany could establish a political and an economic framework encouraging O+G to turn to geothermal which then other countries could follow. If O+G changes then to geothermal, the communities need less finance to pay and all citizens enjoy a less polluted planet.