U.S. Geothermal Rig Count shows slight upward trend
U.S. Annual Geothermal Rig Count, Yearly Average (source: Baker Hughes)
Alexander Richter
19 Oct 2013
Recent data from Baker-Hughes Drilling Rig Count, shows a small upward trend for geothermal drilling activity in the United States, a trend that will hopefully continue and lead to more development in the U.S.
The past 2-3 years, ThinkGeoEnergy has been somewhat pessimistic about geothermal growth in the United States. While the market saw some fine projects coming online, the geothermal rig count had reached the lowest numbers since its sudden growth throughout 2008 to 2010.
But at the recent GRC Annual Meeting, there were some voices, namely from Mark Taylor, geothermal research lead at Bloomberg New Energy Finance, at the Opening Session that raised some interesting points highlighting that geothermal might see an upswing in the U.S.
The argument was mainly the role geothermal plays and can play in providing constant power being able to deal with the different load on the grid from intermittent resources such as solar and wind.
I have to admit having being a bit critical about it. So I actually went and had a look at the development of the geothermal rig count in the U.S. at the moment and in the past few months. With geothermal drilling being likely the most critical stage in geothermal development due to its risk profile, the rig count gives a good indication about the current state of the industry and drilling activity, which ultimately will lead to more construction in the process and geothermal power capacity coming online.
In its thorough North American Rig Count, Baker Hughes provides not only recent but also historical data. Looking at the annual averages for the years of 2000 through to 2013, one can see an upswing for geothermal drilling rigs being at work in the U.S. With a peak at 11 drilling rigs in 2010 and 2011, the rig count fell to its lowest of in recent years of one rig in late 2012, it saw up to 8 drilling rigs drilling in April and August of this year.
So while the average for 2013 was 50% more than in 2012, there clearly is an upward trend recognizable, which promises at least some positive outlook for geothermal development. This is a trend that hopefully will continue, so ThinkGeoEnergy is now slightly optimistic.
Source: Baker Hughes Rig Count
