Texas Regulator Issues Second Deep Geothermal Well Permit to Quidnet Energy
The Texas Railroad Commission has issued its second deep geopressured geothermal well permit, this one to Quidnet Energy Deployment LLC for a Galveston County storage project, World Oil reports.
Market Impact
The permit, issued this month, follows the RRC’s first deep geopressured geothermal permit, granted in February 2025 to Sage Geosystems for a project in Atascosa County that supports energy storage for the San Miguel Electric Cooperative. The Quidnet permit builds momentum for a sector regulators are still standing up: the RRC took over geothermal well jurisdiction from the Texas Commission on Environmental Quality in September 2023, and is now applying its oil and gas subsurface expertise to oversee the new technology.
“Since assuming jurisdiction over geothermal well regulations from the Texas Commission on Environmental Quality in September 2023, the RRC has remained committed to taking a deliberate permitting approach that supports the responsible growth of this new technology,” said RRC Executive Director Wei Wang. “This work in geothermal energy is yet another example of how the RRC’s expertise in responsible subsurface regulation helps keep Texas at the forefront of energy development.”
The growth isn’t limited to deep wells. Shallow closed-loop geothermal systems, used to heat and cool buildings, jumped from about 1,400 wells completed in each of fiscal years 2024 and 2025 to 3,162 wells drilled across 39 sites so far this fiscal year. The RRC attributes the surge to a new shallow geothermal rule that clarified regulatory responsibilities and streamlined permitting without adding staff or fees.
What It Means for Subcontractors
- Drilling and completions crews with oil and gas experience are positioned to bid into deep geopressured geothermal work: only two permits exist so far (Sage Geosystems in Atascosa County, Quidnet Energy in Galveston County), so early movers in these regions could establish relationships before the sector scales.
- Shallow geothermal drilling has become a volume opportunity: 3,162 wells across 39 Texas sites this fiscal year, more than double the roughly 1,400 wells per year in fiscal 2024 and 2025, signals steady demand for HDD, well drilling, and mechanical trades tied to building heating and cooling systems.
- Subsurface engineering and E&I firms familiar with RRC oil and gas permitting processes have an advantage, since the agency is applying existing regulatory frameworks rather than building new ones, meaning compliance experience from conventional drilling carries over directly.
- Firms in Galveston and Atascosa counties should track RRC permit filings for follow-on subcontract packages tied to the Quidnet and Sage Geosystems projects, since both involve wellsite construction and completion work typical of oilfield service scopes.
