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Oil and Natural Gas Supply

Oil and natural gas are the lifeblood of our economy, accounting for more than 60 percent of the energy consumed in the United States. To meet projected
demand, our Nation has a vital interest in ensuring that competitively-priced domestic natural gas and oil remain part of the U.S. energy portfolio for decades to come. Read More.

Announcements

DOE-Funded Primer Underscores Technology Advances, Challenges of Shale Gas Development - The U.S. Department of Energy (DOE) announces the release of “Modern Shale Gas Development in the United States: A Primer.” [PDF-5.11MB] The Primer provides regulators, policy makers, and the public with an objective source of information on the technology advances and challenges that accompany deep shale gas development and describes the importance of shale gas in meeting the future energy needs of the United States. Protecting and conserving water resources is an important aspect of producing shale gas, and this effort was championed by the Ground Water Protection Council through a cooperative agreement with NETL.

New Edition of the E&P Focus Newsletter Now Available [PDF] E&P Focus is a quarterly NETL publication highlighting the latest developments in oil and natural gas R&D being carried out by the Department of Energy. E&P Focus promotes the widespread dissemination of research results among all types of oil and gas industry stakeholders: producers, researchers, educators, regulators, and policymakers. Read more on E&P Focus including subscription information

Environmental Funding Opportunity Announcement The objective of this Environmental Sciences & Technology Development FOA is to fund research that addresses key water resources and water management issues related to environmentally responsible oil and natural gas production. The National Energy Technology Laboratory’s primary goal will be to fund projects related to Environmental R&D focused on (1) water resources and water management for shale gas development as well the science to support regulatory streamlining and permitting associated with shale gas development and (2) technological solutions for Alaskan water management issues arising from development of local oil and natural gas resources for use by remote communities.

New Projects Selected Under Title IX, Subtitle J, Section 999 of the Energy Policy Act of 2005 Nine new Unconventional Resources Program projects and six new Small Producer Program projects have been selected as part of the 2008 project selection process. These projects build upon the projects selected as part of the 2007 program.
Read more on the Unconventional Resources selections
Read more on the Small Producer selections

DOE-Funded Project Shows Promise for Tapping Vast U.S. Oil Shale Resources A technology as simple as an advanced heater cable may hold the secret for tapping into the nation's largest source of oil, which is contained in vast amounts of shale in the American West. A recently completed project sponsored by DOE/NETL successfully demonstrated the application of a ceramic-composite insulated heater cable for oil shale recovery deep underground.
Read more on this project

DOE/NETL-Sponsored Technology Enhances Recovery of Natural Gas in Wyoming Research sponsored by DOE/NETL has found a way to distinguish between groundwater and the water co-produced with coalbed natural gas, thereby boosting opportunities to tap into the vast supply of natural gas in Wyoming as well as Montana. Read more about this project.

Announcements Archive >


While domestic resources remain plentiful, increasingly, these resources are concentrated in geologically challenging and operationally complex settings such as deep formations, deepwater offshore, and lower permeability formations. Their recovery requires innovative exploration and production technologies, along with sustained attention to environmental protection.

Through NETL, scientists and engineers in government and industry are focusing on innovative solutions to these challenges. NETL supports research, development, and field demonstrations of advanced technologies to enhance near-term and mid-term supplies through the efficient use of the nation's existing resources. NETL also performs analyses of natural gas and petroleum issues to support policy decisions and to ensure a balanced R&D portfolio.

  • To help industry increase supplies of oil and gas in the near term, NETL focuses on developing low-cost technologies to expand the economic life expectancy of individual wells, spurring innovations to find and tap missed or bypassed reservoirs in the field, and transferring new technology to the thousands of small and independent operators that account for the lion’s share of the U.S. industry.
  • Over the mid term, NETL’s E&P efforts target critical emerging resources -- such as tight gas, deep gas, and heavy oil -- that are currently poorly understood and underutilized. These unconventional and emerging resources require the application of new technologies to make recovery economic. Such efforts have borne fruit in the past. Earlier DOE-funded research has catalyzed an unconventional natural gas industry that currently accounts for 30 percent of the Nation’s gas supply—a share expected to grow.
  • Sustaining natural gas and oil supplies over the long term will require adding fundamental new sources to the nation's resource base. As a result, NETL is leading a national R&D effort to evaluate methane hydrates and other potential future resources that may one day contribute to our nation’s supply demands.

Meeting National Goals
NETL’s RD&D efforts contribute to the following vital national goals:
  • Secure and reliable energy supplies
    The United States is home to an abundant supply of both natural gas and oil, yet there exists a supply and demand gap because much of the conventional resource base has been harvested. Future sources of supply will come from more remote locations, increasingly complex and deeper reservoirs, and more environmentally sensitive areas. New technologies will certainly be needed to develop these resources in an environmentally and economically acceptable manner. With advanced technologies, our Nation can continue producing these valuable domestic resources while also meeting environmental protection goals.
     
      Conventional / Unconventional Gas
     
    America's demand for natural gas is expected to grow as much as 50% by 2025. Unconventional gas resources, much of which currently are not economically recoverable, are expected to bear much of the burden of meeting this demand.
       
  • Clean power generation
    The clean-burning properties of natural gas make it a preferred fuel for power generation. Indeed, natural gas consumption in the power generation sector is projected to increase from 5.0 trillion cubic feet in 2003 to 9.4 trillion cubic feet in 2025. Cost-effective production, processing, transmission, and storage technologies will enable natural gas to fulfill this central role in meeting our Nation’s growing electricity needs.