Publications

A project to estimate well costs in regions of current geothermal activity has been initiated. Costs associated with commonly encountered drilling problems will be included. Activity-based costing techniques will be employed to allow the identification of cost drivers and the evaluation of the economic effects of new technologies and operational procedures on well costs. The sensitivity of well costs to a number of parameters such as rate-of-penetration and daily operating costs will be examined. Additional sensitivity analyses and trade-off studies will evaluate the efficiency of various operational practices and preventive, as well as remedial, actions. These efforts should help provide an understanding of the consumption of resources in geothermal drilling.

This annotated briefing documents an economic analysis of Sandia`s system-level test facilities maintained and operated by the Design, Evaluation, and Test Technology Center 9700. The study was divided into four primary sub-tasks: (1) Estimation of the future system-level test workload, (2) Development of a consistent economic model to estimate the cost of maintaining and operating the test facilities, (3) Determination of the availability of viable alternative test sites, and (4) Assessment of the potential savings through reduction of excess capacity under various facility-closure scenarios. The analysis indicated that potential savings from closing all facilities could approach $6 million per year. However, large uncertainties in these savings remove any sound economic arguments for such closure: it is possible that testing at alternative sites could cost more than maintaining the current set of system-level test facilities. Finally, a number of programmatic risks incurred by facility closure were identified. Consideration of facility closure requires a careful weighing of any projected economic benefit against these programmatic risks. This summary report covers the briefing given to upper management. A more detailed discussion of the data and analyses is given in the full report, available for internal use from the technical library.

Drilling is ubiquitous in oil, gas, geothermal, minerals, water well, and mining industries. Drilling and well completion account for 25% to 50% of the cost of producing power from geothermal energy. Reduced drilling costs will reduce the cost of electricity produced from geothermal resources. Undoubtedly, there are concepts for advanced drilling systems that have yet to be studied. However, the breadth and depth of previous efforts in this area almost guarantee that any new efforts will at least initially build on an idea or a variation of an idea that has already been investigated. Therefore, a review of previous efforts, coupled with a characterization of viable advanced drilling systems and the current state of technology as it applies to those systems, provide the basis for this study.

This report gives the results of a study of the production of electricity from geothermal energy with particular emphasis on the drilling of geothermal wells. A brief history of the industry, including the influence of the Public Utilities Regulatory Policies Act, is given. Demand and supply of electricity in the United States are touched briefly. The results of a number of recent analytical studies of the cost of producing electricity are discussed, as are comparisons of recent power purchase agreements in the state of Nevada. Both the costs of producing electricity from geothermal energy and the costs of drilling geothermal wells are analyzed. The major factors resulting in increased cost of geothermal drilling, when compared to oil and gas drilling, are discussed. A summary of a series of interviews with individuals representing many aspects of the production of electricity from geothermal energy is given in the appendices. Finally, the implications of these studies are given, conclusions are presented, and program recommendations are made.

This paper gives an estimate of the cost to produce electricity from hot-dry rock (HDR). Employment of the energy in HDR for the production of electricity requires drilling multiple wells from the surface to the hot rock, connecting the wells through hydraulic fracturing, and then circulating water through the fracture system to extract heat from the rock. The basic HDR system modeled in this paper consists of an injection well, two production wells, the fracture system (or HDR reservoir), and a binary power plant. Water is pumped into the reservoir through the injection well where it is heated and then recovered through the production wells. Upon recovery, the hot water is pumped through a heat exchanger transferring heat to the binary, or working, fluid in the power plant. The power plant is a net 5.1-MW[sub e] binary plant employing dry cooling. Make-up water is supplied by a local well. In this paper, the cost of producing electricity with the basic system is estimated as the sum of the costs of the individual parts. The effects on cost of variations to certain assumptions, as well as the sensitivity of costs to different aspects of the basic system, are also investigated.