NEWS DOE poised to switch gears on oil and gas R&D

Aug. 28, 1995
The U.S. Department of Energy soon will begin implementing recommendations for new approaches in oil and gas research and development. Energy Sec. Hazel O'Leary made the announcement to the National Petroleum Council, her oil industry advisory group, which approved a report "Research, Development, and Demonstration Needs of the Oil and Gas Industry." She did not reveal details of the planned changes. O'Leary also pledged closer cooperation with the industry on oil and gas R&D projects.

The U.S. Department of Energy soon will begin implementing recommendations for new approaches in oil and gas research and development.

Energy Sec. Hazel O'Leary made the announcement to the National Petroleum Council, her oil industry advisory group, which approved a report "Research, Development, and Demonstration Needs of the Oil and Gas Industry." She did not reveal details of the planned changes.

O'Leary also pledged closer cooperation with the industry on oil and gas R&D projects.

Advances required

The research study approved by NPC said technological advances are imperative for the petroleum industry and the nation.

It said, "The competitive edge of the industry will increasingly depend on the ability to manage and apply technology effectively and rapidly. This will include leadership in technology for environmentally sound operations and environmentally acceptable hydrocarbon fuels.

"The industry faces significant challenges to effectively and efficiently finding, producing, and processing new reserves of oil and gas and converting these reserves into products while complying with regulations at acceptable costs. (18141 bytes)"

The report surveyed U.S. oil companies on research development and demonstration (RD&D) and found majors and independents were most concerned about high resolution depth imaging, improved well productivity, and hydrate control and prevention.

All asked for a scientific basis for risk-based environmental regulation.

Service companies cited horizontal well technology as a high priority.

Independent producersbut not majorsrated paraffin control as very important.

Downstream, companies asked for improved catalysts, new approaches to refining heavy feedstock, improved energy efficiency of processes and equipment, and improved plant and process reliability.

The report said the oil industry wants a larger voice in selection and conduct of energy RD&D at national laboratories.

Recommendations

The study said regardless of federal spending levels, user-driven technology development will improve efficiencies and cost-effectiveness of RD&D.

It said, "Many (NPC) members believe there is a place for industry-government collaboration in development of oil and gas technology. However, there is a wide range of opinions among NPC members concerning the value and desirability of a government role.

"At one end of the spectrum is the belief that government should leave the significant components and expenditures for energy RD&D to the private sector and RD&D tax incentives for industry are preferred over government funding of opportunities for collaboration.

"Those at the opposite end of the spectrum hold that energy RD&D is so important to our national and economic security that it should not be entirely the responsibility of the private sector."

Although there is public debate over government's role and funding is being reduced, there is an opportunity to expand collaborative RD&D to develop oil and gas technology.

The study urged DOE to seek even more industry advice when it sets RD&D goals and focus its research on technology programs the private sector cannot effectively conduct.

It said research projects should match industry's main needs with the unique capability of national laboratories.

"Continuity should be provided for logical (cost effective) completions of all short term projects, no matter how the industry lab RD&D collaborations change over the next few years."

The study urged DOE and government laboratories to remove barriers to collaboration by simplifying administrative procedures, trimming paperwork, and cutting the time to bring technology to practical application.

It said government laboratories should not become a technical services organization competing with industry resources.

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