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US geothermal drilling market expected to reach US$2bn/ year

US geothermal drilling market expected to reach US$2bn/ year ThermaSource drilling rig 105 (source: Canadian-Wellsite.com)
Alexander Richter 13 Aug 2010

Bloomberg New Energy Finance estimates the U.S. geothermal drilling market to expand to over US$2billion per year, or more than US$15bn to complete current development.

In a new research note on the U.S. geothermal drilling market, Bloomberg New Energy Finance (NEF) estimates an expansion of the market to over US$2billion per year.

Fluctuations in the domestic oil price, so the note, have pushed several oil and gas drillers into the geothermal market in an effort to keep rigs busy.

Mark Taylor, of Bloomberg New Energy Finance, states that “This has created a more robust market. The added competition has driven down day rates and reduced wait times for rigs, both features highly favourable for geothermal developers.”

If the current increase in drilling and activities continues, Bloomberg New Energy Finance expects that more than “US$15 billion are required to complete the over 4,000 MW in the current U.S. geothermal project development pipeline.”

Source: Bloomberg New Energy Finance