The U.S. Is Converting Old Oil Wells Into Geothermal Energy Sources

The Department of Energy has launched a funding program called Wells of Opportunity (WOO): Amplify II & ReAmplify to turn existing oil and gas wells into geothermal energy sites. Instead of drilling new wells from scratch, the government wants to repurpose the hundreds of thousands of abandoned wells already dotting the country.

The approach works through two main methods. The first involves retrofitting wells that have been abandoned for years. The second taps heat from active oil and gas operations—when these wells encounter very hot water deep underground, that heat can be captured to generate electricity for immediate use or storage on the grid.

How Many Wells Are We Talking About?

The numbers are substantial. Oklahoma and Texas together have more than 800,000 abandoned oil, gas, and exploratory wells. Across the entire United States, there are between 2 and 3 million disused oil wells, with over 500,000 considered suitable for conversion to geothermal use.

The University of Oklahoma is running a federally funded research project to study how to tap geothermal energy from the state's sedimentary basin—the rock layers that hold both oil and heat. A pilot project at Blackburn field aims to generate at least 1 megawatt of power from existing wells, serving as a proof-of-concept that the conversion approach can work at scale.

How the Technology Works

The basic idea builds on decades of oil and gas drilling expertise. Geothermal systems extract heat from deep rock formations to produce clean energy continuously. Modern drilling techniques create paths through rock that were previously inaccessible, allowing heat to be captured in closed-loop systems—essentially recycling hot fluid through pipes rather than extracting it permanently.

Beyond just generating electricity, this geothermal heat can be used directly for heating and cooling buildings—schools and other institutions benefit especially from this flexibility. Rural areas where oil and gas infrastructure already exists are particularly well-suited to this approach, since wells, pipelines, and support facilities are already in place.

Regulatory Questions Are Being Worked Out

Oklahoma's lawmakers are considering legislation to formalize how companies can acquire and convert abandoned wells for geothermal use or energy storage. One project in the state has already secured the first permit for this kind of conversion, setting a precedent. The federal Bureau of Land Management has updated its regulations for geothermal development on public lands, providing a structure for projects on government-owned territory.

What the Market Opportunity Looks Like

A 2024 Department of Energy projection estimates that next-generation geothermal power could provide 90 to 300 gigawatts of capacity in the United States by 2050. Currently, California produces about two-thirds of America's geothermal power, concentrated around a region called The Geysers in the north. Converting old wells could spread geothermal generation across oil and gas regions in Texas, Oklahoma, Nevada, and beyond.

The parallel to previous technology shifts is instructive. When the commercial internet took off in the 1990s, companies built it on top of existing telephone networks rather than requiring entirely new fiber and copper infrastructure to be strung everywhere. Similarly, geothermal development can leverage wells, drilling expertise, and land access already in place from decades of oil and gas activity.

Major Energy Companies Are Getting Involved

Large oil and gas companies are beginning to add geothermal projects to their portfolios as they pursue climate commitments. Chevron is developing a geothermal site in Nevada, while also investing in carbon capture. ExxonMobil has set targets to reach net-zero emissions for its direct operations by 2050, with faster timelines for some assets by 2030. Well conversion technology could allow these companies to keep generating revenue from existing wells while reducing emissions—a genuine alignment of business interest and climate goals.

International Interest Is Growing Too

Academic researchers in Canada and the Middle East are exploring whether well conversion makes economic sense in their regions. Economists are comparing the cost of geothermal power from these converted wells to other renewables like wind, analyzing whether the approach makes financial sense under different conditions.

The pattern emerging across federal funding, state regulation, and corporate investment suggests that well conversion is moving out of the research phase and into real commercial deployment. The DOE's funding program is providing the structured support needed to prove the technology works and build industry confidence that this is a viable path forward.

Federal funding, state rule-making, and corporate interest are now converging on well conversion as a practical next step in the energy transition—not revolutionary, but a sensible way to deploy existing infrastructure for clean energy at scale.