RE: RE: RE: RE: Casey's Energy ReportGeothermal wells have a rate of decline just like oil wells, but the geothermal rate of decline is much lower (1.75% in the Casey analysis) versus oil/gas wells (a conservative 14% in the Casey analysis).
Example, start with 50MW geothermal plant, calculate how many kilowatt hours it produces in a year 1.
50MW plant produces 50,000 kilowatts per hour.
50,000 kilowatts per hour X 8500 hours of operation = 425 million kilowatts produced per year.
Convert kilowatts to BOE: 425 million kilowatts / 1700 = 250,000 BOE produced in year 1.
Assume a lifespan for the geothermal plant (they wear out too) of 25 or 50 or 100 years, assume a rate of decline in production of 1.75% a year (in year 2 this 50MW plant would produce 245,625 BOE, year 3 it would produce 241,326 BOE and so on), and you can calculate a total BOE resource associated with this plant over 25 or 50 or 100 years.
Ram has close to 400MW of power signed to PPA's in the US (Casey based the calculation of 2P reserves on P90 reserves with signed PPA agreements). Run those 400 MW through this analysis and we should reach the 158 million BOE of the Casey estimate for RAM.