Nick Snow
Washington Editor
A US Department of Energy official made two things clear to a House Science, Space, and Technology Committee subcommittee on Apr. 6: First, federally funded basic research laid the foundation for the successful use of hydraulic fracturing and horizontal drilling to recover natural gas from tight shale formations and second, the Obama administration considers that role inappropriate in improving offshore oil and gas safety and environmental protection processes.
DOE's Acting Asst. Sec. for Fossil Energy Victor Der pointed out to the committee's Energy and Environment Subcommittee that $137 million of basic research in the 1970s and '80s set the stage for technologies that have made it possible to recover oil and gas previously considered inaccessible.
Funding that kind of research to improve offshore oil and gas operations isn't appropriate, Der added. "Continuing forward, we have a role to advise and recommend areas of research into safer deepwater drilling technologies and practices," he said, adding that basic research there should be funded now by the oil and gas industry, which can afford it.
Two industry witnesses suggested that the industry is trying to meet the challenge. David Miller, who directs the American Petroleum Institute's standards program, said API plans to complete work later this year on two new standards: one on deepwater well design and one that will provide a systematic way for the offshore operator and the drilling contractor to ensure that their respective safety programs are fully aligned.
'A lot of incentive'
Owen Kratz, chief executive officer of Helix Energy Solutions Group Inc., cited ongoing efforts to develop equipment and processes capable of working safely and effectively in deeper water. "I think the industry has been preparing for some time to work at 10,000 ft," he said, adding, "There has been, and continues to be, a lot of incentive to develop capabilities at that depth, especially with Brazil on the horizon."
A fourth witness, Molly K. Macauley of Resources for the Future, expressed concern that existing incentives may not be adequate for industry to create and maintain a robust and sustained investment in offshore spill containment R&D.
Subcommittee member Lynn C. Woolsey (D-Calif.) noted that the committee and House passed a bill doubling funding federal offshore oil spill and containment R&D last year, but it was not taken up by the Senate. She then asked Der how much money is needed, and who should contribute.
"The funding of oil and gas research related to safety and environmental mitigation should be the responsibility of industry, since it is very big and can afford to do the work," the DOE official replied. "Our role should be in guiding the research."
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