251. Geothermal Energy and U.S. Competitive Advantage: Drill, Baby, Drill
- Author:
- Robert W. Sweeney and Noah Gordon
- Publication Date:
- 03-2025
- Content Type:
- Working Paper
- Institution:
- Carnegie Endowment for International Peace
- Abstract:
- The United States and the rest of the world sit at the intersection of potentially destabilizing trends. Great power competition, climate change, intensifying geopolitical uncertainty, the economy’s potential deglobalization, and the potential massive increase in energy demands arising from artificial intelligence (AI) are creating challenges for U.S. national energy policy. A foremost concern is the vulnerability of energy supply chains to interference from or control by a hostile power. In this dynamic context, U.S. energy policy has evolved significantly in terms of markets, supplies, regulation, and legislation. The country’s success in using fracking technology and exploiting abundant shale reserves have made it the world’s largest producer of hydrocarbons and a major exporter, especially of natural gas.1 Further, as national and international concerns about climate change have grown, U.S. energy policy has become more aligned with transitioning to renewable sources. So far, the focus of clean energy additions has been on wind, solar, and nuclear power. Beginning in the mid-2000s, the United States issued legislation and policies raising renewable energy to the level of industrial policy. Among those were the Energy Policy Act (2005), the American Recovery and Reinvestment Act (2009), the Infrastructure Investment and Jobs Act (IIJA) (2021), the CHIPS and Science Act (2022), and the Inflation Reduction Act (IRA) (2022). However, geothermal energy—which uses the heat of the earth’s crust for power—has been largely left out of U.S. industrial policy. This is despite the facts that utilizing this source of renewable energy requires some of the same technologies that have made the United States the world’s top oil and gas producer and that geothermal has the potential to provide clean, dispatchable power that does not rely on weather conditions. With U.S. clean firm power demand expected to increase by approximately 700–900 gigawatts by 2050,2 the United States needs to dramatically increase capacity while reducing or eliminating net carbon output and insulating its energy supply from dependence on international supply chains. The question for the country now is: how should public and private resources be directed to provide the United States with an energy system optimized for the current national and international environment? This paper argues that recent advances in geothermal power have made it the technology with superior characteristics for future U.S. energy system development. With its comparative advantages, geothermal power merits an urgent, intense, and dedicated reorientation of U.S. industrial policy, legislation, and resources.
- Topic:
- Development, Energy Policy, Science and Technology, and Geothermal Power
- Political Geography:
- North America and United States of America