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Issue Definition
US Methane Hydrate Research
Natural Gas Need by 2030:
Increase in consumption, 20%
Increase in imports, 3 tcf (LNG)
US Methane Hydrate Research Goal
Can methane hydrate be technically and
economically produced in the United States?
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Issue Definition
US Methane Hydrate Research
Need for Industry:
Future research = field work
Diverse work teams
Technology transfer
Encouragement of production
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Issue Definition
US Methane Hydrate Research
Industry Perceptions:
Unreliable business partner - politics Uncertain funding
Program Results:
Decreased Industry Participation
Loss of expertise, additional funding, andequipment
Slowed research schedule
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Methane Hydrates Background
Frozen Methane Methane (natural gas)
trapped in water cages
Hydrates may be contained
in sediments like shale,sand, etc.
Associated withconventional deposits
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http://
The Importance of Methane Hydrates
Energy Costs
Energy Security
US Economy
The Environment
www.eia.doe.gov/oil_gas/natural_gas/analysis_publications/natbro/gasprices.htm
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Goal Realization Process
To assess
domestic methane
hydrate energy
resource andproduction
potential
Technology
Development
Domestic Methane
Hydrate Mapping,
Characterization,
Field Surveys, etc.
GoalSteps
to Goal
Broad Research
Goals
Improper Funding:
Irregularity and
Amount
Barriers
Industry Participation
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HistoryGoal Development
Congressional Legislation
Methane Hydrate Research and Development
(MHR&D) Act of 2000
Energy Policy Act (EPACT) of 2005
Amendment to the 2000 MHR&D Act
Royalty Relief
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2000 MHR&D Act, Research Goals
A. Determine the commerc ial v iab il it y?
B . Methane hyd rate locat ion
C. Characterizing methane hydrate accumulationsD. Tech development required for efficient and
environmentally sound development of methanehydrate resources
E. Education and training
F. Research on the env ironmental impact o fhyd rate degassing
G. Tech development fo r safe product ion
H. Exploratory drilling, well testing, and productiontesting
HistoryGoal Development
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HistoryFunding Gap
Discontinuity
Authorizations and Appropriations Amounts (in $M)
Irregularity of funds
0
5
10
15
20
25
30
35
40
2003 2004 2005 2006 2007 2008 2009
Fiscal Year
MillionsofDolla
Authoriziations
Appropriations
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U.S. Policy Recommendations
To expedite US research schedule, the USCongress should:
1. Appropriations equal to authorizations2. Advanced appropriation process
3. Amendment: Domestic Methane Hydrate
Assessment Initiative- authorize funds tobe USGS, the BLM, and the MMS
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Questions?
Thank you!
(This presentation is dedicated to all the oxen that weregored in the production of this power point
presentation.)
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HistoryGoal Development
Congressional Legislation, Con.A. conduct basic and applied research to identify, explore, assess, and develop
methane hydrate as a commercially viable source of energy;B. identify methane hydrate resources through remote sensing;C. acquire and reprocess seismic data suitable for characterizing methane
hydrate accumulations;
D. assist in developing technologies required for efficient and environmentallysound development of methane hydrate resources;
E. promote education and training in methane hydrate resource research andresource development through fellowships or other means for graduateeducation and training;
F. conduct basic and applied research to assess and mitigate the environmentalimpact of hydrate degassing (including both natural degassing and degassing
associated with commercial development);G. develop technologies to reduce the risks of drilling through methane hydrates;and
H. conduct exploratory drilling, well testing, and production testing operations onpermafrost and non-permafrost gas hydrates in support of the activitiesauthorized by this paragraph, including drilling of one or more full-scaleproduction test wells.
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Outline
Issue Definition Methane Hydrate Background
The Importance of Methane Hydrates
History of U.S. Methane Hydrate GoalDevelopment
History of U.S. Methane Hydrate Funding
Options
Policy Recommendations
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Methane Hydrates Background
www.fossil.energy.gov/programs/oilgas/publications/methane_hydrates/Interagency_coor_hydrates.pdf
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HistoryGoal Development
Coordination Groups1. The Methane Hydrate Advisory Committee (MHAC)
2. The Interagency Coordination Committee (ICC)
3. The Technical Coordination Team (TCT)
Publications: Assessment of Uncertainty of the Impact of Methane Hydrate
on Global Climate Change, 2002
FY2004 Federal Advisory Committee Annual Report
Advisory Meeting Minutes, 2005, 2006
Interagency Research Roadmap, 2006
http://www.fe.doe.gov/programs/oilgas/hydrates/Methane_Hydrates_Advisory_Committee.html
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