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Major energy companies have refocused their
research, development and demonstration (RD&D) efforts on
shorter term projects or larger international opportunities. The
technology provider/service sector RD&D dollars logically follow
this high volume, high profit target. Technologies that are
developed have some application in mature U.S. producing basins,
but they often need adaptation to implement domestically. When
they are developed, it is more costly for the service sector to
connect with the "thousands" of dispersed independent companies
in our producing states.
Independents account for a significant and
growing portion of domestic activity and their human resources
have plateaued attempting to maintain the current level of
drilling. The few who do have the money to fund RD&D don't have
the internal technical resources to best know how or where to
invest those dollars. The vast majority of independents simply
do not have either the money or human resources to individually
fund or guide an RD&D program. Collaborative research with
federal resources would have such a national focus. This
partnership would be in a position to define and qualify efforts
that would have broad application.
PTTC just completed its spring National Board
meeting in Washington, DC. While there, our volunteers took the
opportunity to talk with key members in Congress with the
message that continued federal support for domestic natural gas
and oil RD&D is needed and a sound investment for the country.
The effectiveness of the program has been questioned but there
are clear benefits shown in development of unconventional
natural gas resources for example. Much of the early work upon
which today's technology is based was developed in DOE-supported
RD&D projects in the past decade. Another example of
effectiveness resulted when DOE invested heavily in a series of
Reservoir Class projects. One Reservoir Class is the carbonate
shelf reservoirs, many of which are now being flooded with
carbon dioxide (CO2). CO2 flooding now
produces 4% of domestic oil supply and, with the move to carbon
capture strengthening and more research, there is even more
potential. Moving forward, microhole technology for drilling
smaller diameter, lower cost wells will bear fruit in the U.S.'s
mature producing basins.
The changing of the guard when it comes to
developing technology primarily for mature domestic reservoirs
is upon us and there is no room for re-inventing the wheel or
making the same mistakes we have made in the past. A
collaborative effort of industry, state and federal participants
focused on key technical barriers would well serve the country
in providing affordable energy and provide a strong leverage of
the scarce resources that challenge the industry. |
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