DE-AC26-07NT42677

Goal
The goal is to maximize the value of indigenous U.S. natural gas and other petroleum resources with a focus on near-to-mid-term results. Priority resources to be addressed include ultra-deepwater natural gas and onshore unconventional natural gas (tight gas sands, gas shales, and coalbed methane) which have been identified by the National Petroleum Council (NPC) and others as strategic areas for future natural gas supplies. The program will increase the supply of these resources by implementing a research program to reduce recovery costs and increase the efficiency of exploration and production (E&P) while improving safety and minimizing environmental impacts. An additional goal is to provide small producers with the tools necessary to develop natural gas and other petroleum resources and the knowledge base to effectively increase production and resource recovery.

Performer
Research Partnership to Secure Energy for America (RPSEA), Sugar Land, TX 77478

Background
In August 2005, President Bush signed the Energy Policy Act (EPAct) (the first national energy plan in more than a decade) into law. EPAct Sections 965, 968, and 999 all support oil and gas R&D. The first two of these sections relate to programs that DOE’s Office of Fossil Energy and the National Energy Technology Laboratory (NETL) are already implementing. Section 999, however, adds a new dimension to the overall DOE oil and gas R&D effort that involves enhancing opportunities to demonstrate technologies in the field and accelerating their implementation in the marketplace.

The Ultra-Deepwater and Unconventional Natural Gas and Other Petroleum Resources Program launched by Section 999 is a public/private partnership designed to increase America’s domestic oil and gas supply and reduce dependency on imports. A portion of the funding is directed toward cost-shared research partnerships, while another portion will be used by NETL to carry out complementary R&D.

Section 999 sets the funding for this program at a level of $50-million-per-year over 10 years, provided from federal lease royalties, rents, and bonuses paid by oil and gas companies. The funds are directed specifically towards research targeting four areas: ultra-deepwater resources (35%), unconventional natural gas and other petroleum resources (32.5%), technology challenges of small producers (7.5%), and fundamental research complementary to these areas (25%). The complementary research will be performed by NETL, while all other research will be administered by the consortium overseen by NETL. Each year, RPSEA will develop and submit to DOE a draft Annual Plan, which will be used to develop the DOE Annual Plan for Section 999.

Impact
The program will increase the supply of ultra-deepwater oil and natural gas and onshore unconventional natural gas (tight gas sands, gas shales, and coalbed methane) through research to reduce recovery costs and increase the efficiency of exploration and production (E&P) while improving safety and minimizing environmental impacts. It will also provide small producers with the tools needed to develop natural gas and other petroleum resources and the knowledge base to effectively increase production and resource recovery.

Accomplishments
The 2007 Annual Plan for the Ultra-Deepwater (UDW) and Unconventional Natural Gas & Other Petroleum Resources Program was submitted in June 2007, reviewed and commented on by two federal advisory committees (Ultra-Deepwater Advisory Committee (UDAC) and Unconventional Resources Technology Advisory Committee (URTAC)) in July 2007, approved in August 2007, submitted to Congress and published in the Federal Register. The funds for the program were released to DOE in August 2007.

In the fall of 2007, RPSEA released a total of 15 solicitations based upon the 2007 Annual Plan. A total of 43 projects were selected for award. Seven (7) projects were selected for award under the Small Producers Program and 19 were selected for the Unconventional Resources Program. A list of these projects can be found on the RPSEA website (external site). A total of 13 solicitations were released under the Ultra-Deepwater Program and 16 of 17 selected projects were awarded. Information regarding the awarded projects can be found on both the RPSEA website and the NETL website.

In January 2008, the 2008 Annual Plan for the Ultra-Deepwater and Unconventional Natural Gas & Other Petroleum Resources Program was submitted and was reviewed and commented on by the two federal advisory committees. The 2008 Annual Plan was approved, submitted to Congress, and published in the Federal Register in August 2008. The funds for the program were then released to DOE, and RPSEA released solicitations based on the approved Annual Plan.

In November 2008, RPSEA released a solicitation for the Unconventional Resources Program and one for the Small Producers Program based upon the 2008 Annual Plan. Six projects were selected for award under the Small Producers Program and nine were selected for the Unconventional Resources Program. A list of these projects can be found on both the RPSEA website (external site) and the NETL website. In December 2008 and January 2009, a total of 11 solicitations were released under the Ultra-Deepwater Program and 14 projects were selected for award. Information regarding the selected projects can also be found on both the RPSEA and NETL websites.

In August 2008, the 2009 Annual Plan for the Ultra-Deepwater and Unconventional Natural Gas & Other Petroleum Resources Program was submitted to be reviewed and commented on by the two federal advisory committees. The 2009 Annual Plan was approved, submitted to Congress, and published in the Federal Register in January 2009. RPSEA released a total of six solicitations based on the 2009 Annual Plan, which resulted in 28 projects being selected for award. Eleven projects were selected from four UDW solicitations, 11 projects were selection from the one Unconventional Resources Program solicitation and six projects were selected under the one Small Producers Program solicitation.

In August 2009, the 2010 Annual Plan for the Ultra-Deepwater and Unconventional Natural Gas & Other Petroleum Resources Program was submitted to be reviewed and commented on by the two federal advisory committees. The 2010 Annual Plan was approved, submitted to Congress, and published in the Federal Register. RPSEA released a total of nine solicitations based on the 2010 Annual Plan. Eight projects were selected from the Unconventional Resources Program solicitation and three projects from the Small Producers Program. Seven solicitations were released for the UDW program, with selections expected in November 2011. The seven remaining solicitations covered 25 technical areas. One or more project selections are anticipated under each technical area.

RPSEA has also submitted a draft Management Plan, a draft Solicitation Process, and a draft High-Level Metrics Plan to DOE/NETL for review.

RPSEA submitted their 2011 Draft Annual Plan to NETL on July 14, 2010. The 2011 Annual Plan was completed and submitted to the Unconventional Resources Technology Advisory Committee (URTAC) in September 2010. The URTAC completed their review and submitted their recommendations to the Secretary of Energy in October 2010. The 2011 Annual Plan was completed and submitted to the Ultra-Deepwater Advisory Committee (UDAC) in February 2011. The UDAC completed their review and submitted their recommendations to the Secretary of Energy in April 2011. In September 2011, the 2011 Annual Plan was approved, submitted to Congress, and published in the Federal Register.

Current Status (October 2011)
Solicitations based on the 2011 Annual Plan for the Unconventional Resources Program and the Small Producers Program are anticipated to be released in November 2011. Proposals will be reviewed and project selections are expected to be announced in March/April 2012. Solicitations for the Ultra-Deepwater Program are anticipated to be released in January 2012, with selections expected to be made in June 2012. The technical areas for these solicitations can be found in the 2011 Annual Plan. Solicitations will be open for a minimum of 60 days. Additional information on RPSEA and the upcoming solicitations can be found on the RPSEA website [external site].

Project Summaries are being developed for each RPSEA project. These summaries can be found at http://www.netl.doe.gov/technologies/oil-gas/EPAct2005/Projects/Index.html.

RPSEA’s 2012 Draft Annual Plan is due to DOE on November 15, 2011. This draft plan will cover the last 3 years of the program. DOE anticipates submitting the 2012 Annual Plan (DRAFT) to both the UDAC and URTAC for review in January 2012, It is anticipated that the 2012 Annual Plan will be submitted for approval in April 2012.

Project Start: January 4, 2007
Project End: January 3, 2017

DOE Contribution: $356,250,000
Performer Contribution: $87,615,348 (based on minimum 20% cost share for R&D)

Contact Information
NETL – Gary Covatch (gary.covatch@netl.doe.gov or 304-285-4589)
RPSEA – Robert Siegfried (bob.siegfired@rpsea.org or 281-690-5502)

Additional information:

2010 Annual Plan [PDF-4.38MB]

2009 Annual Plan [PDF]

2008 Annual Plan [PDF]

2007 Annual Plan [PDF]