The Economics of Production from Deep Geothermal Resources

Abstract

An analysis is presented showing the economics of producing geothermal steam from saturated liquid feed zones over a range of depths, fiom to The analysis is based upon a relationship developedbetween permeability and depth from a number of geothermal fields world wide, combined with the assumption of boiling point for depth conditions. Data for well costs at varying depths is presented, based upon typical internationalgeothermal drilling costs. The results of the simple economic analysis show that although pressures and fluid enthalpies are lower, producing steam from shallow depths is the most cost-effective option, and that at depths exceeding the cost of the steam produced rapidly increases. Therefore, unless good penneability can be found, at depth the economic cost of steam fiom deep geothermal resources is likely to be high.