Can't reinstall MacOS. This is what my utility screen look like. Can you please help me with the next step

I'm not sure what you are showing, but you have the Recovery drive selected. You can't update or install anything on that.

It appears your hard drive is uninitialized.

Select 500.11 GB Apple HDD and click the Erase button.

Choose Mac OS Extended (Journaled), GUID partition table.

Set the volume name to Macintosh HD, or anything else you'd like.

Click the Erase button.

When that is complete, quit Disk Utility and then Reinstall the OS.

What version of the OS are you trying to reinstall? That image looks very old.