Interview series: Lou Capuano of ThermaSource
Lou Capuano, CEO and one of the drilling rigs of the company (source: ThermaSource)
Alexander Richter
15 Sep 2010
As lead up to GRC's Annual Meeting and the GEA Trade Show in Sacramento in October, ThinkGeoEnergy interviews Lou Capuano the CEO of ThermaSource, truly one of the most prominent geothermal leaders in the U.S.
Continuing in its interview series, ThinkGeoEnergy had the honor to speak with Lou Capuano the CEO of Santa Rosa, California based geothermal drilling and service firm ThermaSource.
Lou Capuano is an engineer that has worked in the drilling field for more that forty years. A complete advocate of geothermal that has be very active in the industry, working with both the GRC and the GEA to promote our industry as truly the best of the renewables.
For this interview I asked Lou a few questions on his company’s view on the current market and on the upcoming GRC/ GEA event in Sacramento.
How would you describe your company and your key activities and markets?
We are truly a service company to the geothermal industry. We have tried to develop a company that provides the geothermal operators the services that are needed in drilling and resource development. The group of companies that is ThermaSource works in the drilling side of the industry in both exploration and development programs. Over one half the cost of geothermal development occurs in the area of resource development, that is drilling and testing. We have worked in this phase of the project to help control this cost.
Having been the predominant geothermal drilling company, you recently saw other drilling companies coming into the market, what makes you different in your offerings in this sector?
Yes, we are a drilling company, but we are also a geothermal engineering consultant company with over 100 years of geothermal drilling expertise, a geothermal well cementing company, a geothermal mud logging company and a geothermal mud supply and engineering company. Other drilling companies have come into the drilling rig market as an after thought because their primary business is oil and gas drilling. Many of these companies supply one or two rigs to geothermal when the oil and gas drilling business slows down, therefore their crews are primary trained for oil and gas and have to adapt to geothermal when the need arises. Our business is primary geothermal, we are first and foremost a geothermal service company, we promote the industry we work with the industry groups and see geothermal as our future. Our crews are trained for geothermal and we continue that training throughout their career.
There is a lot of development in the pipeline in the U.S., will you nevertheless look at other markets as a potential growth opportunity for you (e.g. your activities in Nicaragua)? Are you planning to extend into further markets?
Yes, we are looking at all the markets and we will proceed in developing these markets as we see to opportunities arise. We are working in Nicaragua and we plan to continue there even to the extent that we will welcome more work in this area for additional rigs and services. We have formed ThermaSource Chile and we will work aggressively to move people, rigs and equipment there to move that country into becoming a major geothermal player. We will look at all opportunities both domestic and international. We are also looking to add services to the ThermaSource group of companies as we see a need.
What do you consider the key obstacles and challenges for increased development in the U.S.?
Clients are moving slowly in the US as the credit market has not yet worked to keep up with demand. Many projects are ready for drilling and further exploration, however the client has not yet developed their sources of capital. Federal lease sales have helped, however the permitting is slow, expensive and time consuming.
What do you think holds back speedier development of geothermal energy projects globally?
The lead time from exploration to production. If you drilled an oil well you could sell oil tomorrow, however if you find a geothermal field it may be 5 to 7 years before you can see return on your investment. If we could drill and put electrons on the lines faster, it would help the industry greatly. Exploration methods are not as conclusive as in oil and gas. Our exploration needs work, we need to increase of success rate in exploration drilling.
What are your expectations for the event in Sacramento, and who do you look forward to meet at your booth at the Trade Show?
We look forward to showcase our company. I am very proud of the company we have created and I think we have the best of the geothermal services in house and I welcome the opportunity demonstrate them to developers. We always see many people at these conferences, many new operators and many, many old friends. We want to be able to show them what our capabilities are, how they perform and how we can help them obtain their goals on schedule and under budget.
ThermaSource website: www.thermasource.com
