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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


Need for Industry:

Future research = field work

Diverse work teams

Technology transfer

Encouragement of production


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Issue Definition


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



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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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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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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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