The US Department of Energy (DOE) July 23 announced a new $65.5 million federal funding initiative to advance technology and research in the upstream and midstream oil and natural gas sectors. The program supplements a separate, recent $150 million DOE grant program focused on unconventional reservoir recovery, hydraulic fracturing, and produced-water management.

Available for public-private partnerships, the newly announced grants aim to enhance supply chain reliability, digitalize operations, and maximize the value of underutilized resources. For midstream reliability, eligible projects include developing and field-testing equipment—such as compressors, valves, piping, storage tanks, and advanced alloys—designed to prevent product losses and strengthen domestic chemical supply chains.

DOE also hopes to accelerate the adoption of digital technologies and advanced analytics to improve operational efficiency and safety. Funded projects will utilize full-scale, field-based test sites to deploy continuous monitoring systems, artificial intelligence-supported digital twins, and optimization systems to reduce operating costs.

The department is also seeking projects to convert stranded, contaminated, or flared gas into high-value, easily transportable products. Funded research will progress from laboratory-scale validation of new catalysts and separation processes to field-testing of decentralized gas conversion systems in active production basins.

The application deadline is Sept. 22, 2026.