Comparison of investigations of the 1979 and 2017 cored boreholes coupled with continued observations of the dynamic surface of Surtsey has modified our concepts of the subsurface structure of the volcano. A geometrical analysis of the 2017 vertical and inclined cores indicates that near-surface layering dips westerly, indicating that the boreholes are located inside the Surtur crater. In subaerial deposits, as well as in deep deposits below sea level and below the pre-Surtsey seafloor, there are zones of porous tuff that contain abundant pyroclasts with narrow rims of fine ash. These features, typical of near-surface deposits, could have been carried down the vent by downslumping during fluctuating explosive activity. They support the hypothesis that a broad diatreme underlies the Surtur vent. No major intrusions were encountered in the 2017 drilling except for coherent basalt in deep sub-seafloor deposits below the center of Surtur crater. The 2017 borehole temperature measurements indicate that the peak temperature in the vertical boreholes was 124 °C at 105 meters below the surface (m.b.s.) and that in the inclined hole it was 127 °C at 115 m.b.s. immediately after drilling. These peak temperatures are 72 meters apart horizontally yet closely resemble each other in shape and magnitude, suggesting a broad heat source. In addition, measurements in the inclined hole from 200 to 290 m.b.s. indicate a temperature of 60±2 °C. This is apparently residual heat from the volcanic action that created the diatreme. These facts cast doubt on the previous concept that the heat anomaly in the 1979 borehole was due to a nearby intrusion. Instead they suggest that heat would have been conducted down from the 85-meter-thick hot lava shield within the Surtur crater into a warm diatreme substrate containing original volcanic heat. As the conducted heat moved down into the water-saturated substrate it would have elevated the temperature above the boiling point curve, baked out water, and created a vapor-dominated system below sea level. Eventually loss of heat by boiling and rise of steam caused the vapor-dominated system to retreat upward. The resulting steam rose and warmed the tephra adjacent to the lava shields where it produced broad areas of palagonitized tuff.