States across the US are looking into converting abandoned oil and gas wells into sources for geothermal energy or for underground energy storage and carbon capture. This initiative seeks to transform what are currently costly liabilities—millions of inactive wells that pollute groundwater and leak methane—into assets that can generate revenue and provide clean energy. The process is supported by both Republican and Democratic-led states, highlighting bipartisan agreement on its potential.
Specific legislative actions include Oklahoma considering a bill to allow companies to buy and repurpose wells, with the state having over 20,000 such wells that would take an estimated 235 years and hundreds of millions of dollars to plug conventionally. Alabama recently passed a law permitting the conversion of oil and gas wells for alternative energy, and North Dakota is studying the feasibility of using nonproductive wells for geothermal power. Colorado has also launched a technical study on repurposing old wells for geothermal development and carbon capture.
Despite the clear benefits, such as leveraging existing infrastructure and subsurface data to avoid significant drilling costs, challenges remain. These include the relatively new and untested nature of the concept, the generally lower temperatures found in oil and gas wells compared to what is ideal for electricity-generating geothermal projects, and the high cost of conversion, which has limited real-world examples. However, efforts are underway to streamline permitting processes, as seen in Oklahoma, which is adopting legislation similar to New Mexico's Well Repurposing Act.
