DOE PROPOSES BIG HIKE IN R&D ON NATURAL GAS

Feb. 3, 1992
The U.S. Department Energy proposes to more than triple its gas research spending in its fiscal 1993 budget request. Energy Sec. James Watkins said, "We have not done the job in gas research and development. "We hope this will help get gas demand up." Gas R&D, budgeted at $12.54 million last fiscal year, is targeted for $40 million. The program will focus on industry and market needs using a "systems approach" to try to solve problems in supply, delivery, storage, and utilization. It will

The U.S. Department Energy proposes to more than triple its gas research spending in its fiscal 1993 budget request.

Energy Sec. James Watkins said, "We have not done the job in gas research and development.

"We hope this will help get gas demand up."

Gas R&D, budgeted at $12.54 million last fiscal year, is targeted for $40 million. The program will focus on industry and market needs using a "systems approach" to try to solve problems in supply, delivery, storage, and utilization. It will deemphasize unconventional gas resources.

The Interior Department's fiscal 1993 budget proposal is $6.7 billion, down from $7.1 billion last year. Total revenues will be $6.3 billion, mostly from offshore leasing, rents, and revenues.

Interior said receipts are up due to an expected release of $1.2 billion in escrowed Outer Continental Shelf receipts as the result of a final Supreme Court decision on the location of the federal-state boundary off Alaska.

The Federal Energy Regulatory Commission is budgeted at $147.8 million, up from $141 million. It will offset its costs through fees and annual charges.

The budgets, for the fiscal year beginning Oct. 1, now go to Congress, which usually changes them.

OTHER DOE PROGRAMS

DOE's budget proposal totals $19.4 billion, up from $18.6 billion last year. About $10.8 billion of next year's budget will go for nuclear weapons production, research, and cleanup.

The department earmarked $57 billion for fossil fuel research, including $40 million for a program to demonstrate methods of better producing fluvial dominated deltaic reservoirs.

It set $500 million to fund the final rounds of its Clean Coal Technology program. It signed 32 agreements with sponsors of coal demonstration and commercialization programs.

Watkins said DOE intends to resume filling the Strategic Petroleum Reserve this year, either through standard purchase arrangements or leasing of crude. As ordered by Congress, DOE will submit a plan to expand the SPR, which has a 750 million bbl capacity, to 1 billion bbl.

Copyright 1992 Oil & Gas Journal. All Rights Reserved.