DOE budget goal: oil output hike

The U.S. Energy Department's fiscal 1999 budget has the goal of funding research and development projects that could increase U.S. oil production by 1 million b/d by 2015.

It said, "Advanced technologies developed in the cost-shared program with industry could also contribute directly to more than a quarter of the additional 6 tcf/year of domestic gas production likely to be needed by 2010 to meet energy and environmental demands." Other DOE projects would seek to help the oil industry cut its environmental compliance costs a total of $16 billion by 2010, "allowing more resources to be applied to finding and producing needed supplies of domestic fuels."

The Clinton administration's proposed $1.7 trillion fiscal 1999 budget includes $6 billion for projects related to mitigation of global warming. Overall, DOE is asking Congress for $18.03 billion, $2.3 billion of which is for energy resources. Most of the balance is for nuclear-related activities. DOE said key R&D efforts will be to develop an auto that is three times more fuel-efficient than today's cars, to put 1 million solar roofs on American buildings by the year 2010, and to fund R&D to make use of coal and other fossil fuels cleaner and more efficient.

DOE's Office of Fossil Energy proposed a $160 million budget for the Strategic Petroleum Reserve, continuing a project to extend its effectiveness through at least 2025. DOE urged Congress to stop selling oil from the stockpile to offset budget needs.

It asked for $383 million, up 6%, for coal, oil, and natural gas R&D that mainly targets reduction of carbon emissions and advancement of carbon sequestration technology.

DOE would slash funding for the Naval Petroleum and Oil Shale reserves. It expects to sell Elk Hills NPR soon and transfer two of the three oil shale reserves to the Interior Department. DOE will need only $22.5 million, down 79%, to oversee the remaining properties. The fossil energy office asked for $50 million for oil technology activities, up 3%. It said it would "revisit several high-priority reservoir classes where prior field tests have revealed production issues that can be overcome by better technology." Gas-related R&D is budgeted at $109 million, up 2%. DOE plans two new efforts: examining techniques to find large quantities of methane hydrate, and determining the best locations and approaches for revitalizing gas stripper wells.