DOE Digest

DOE Tackles Gas Pipeline Integrity and Reliability Issues

DOE's National Energy Technology Laboratory (NETL) is tackling integrity and reliability issues of the U.S. aging natural gas pipeline infrastructure on two fronts. One front is through cost-shared awards to the National Labs, an effort which leverages their technical capabilities for the O&G industry. NETL will manage 10 R&D projects with total funding approaching $3 million at eight of the National Labs. Example projects include:

• Argonne National Lab (Illinois), "Microwave Radar Sensing of Gas Pipeline Leaks"
• Lawrence Livermore National Laboratory (California), "Remote Sensing Techniques for Natural Gas Transmission Infrastructure Systems Using Hyperspectral and Radar Imaging" 
• Oak Ridge National Laboratory (Tennessee), "New Acoustic Wave Pipe Inspection System"

In a parallel effort, DOE made 10 awards to universities, R&D organizations, and industry. This two-pronged approach, which leverages the strength of both groups, should bear fruit for the pipeline industry. With a mature oil and gas producing infrastructure, there will undoubtedly be spin-offs for producers.

Visit http://www.netl.doe.gov/publications/press/2001/tl_gasinfra_natlabs.html for more information.

DOE Evaluates "Marginal Properties" in GOM

DOE's National Energy Technology Laboratory (NETL) has completed a comprehensive evaluation of "marginal properties" in the Gulf of Mexico (GOM). The analysis focused on leases in 200 meters or less water depth, which account for about 50% of the oil production and 75% of the total gas production in the GOM. Objectives of the study are twofold: (1) develop a methodology to predict when the existing oil and gas leases are expected to reach their economic limit of production and (2) determine what impacts specified economic incentives, in terms of Federal royalty relief, will have in extending economic life.

DOE completed this analysis at the request of the Independent Petroleum Association of America (IPAA) and the National Oceanic Industry Association. The entire analysis was completed in close consultation with a peer review committee with participants from three operating companies (Devon Energy, Forest Oil, and EOG Resources), the American Petroleum Institute, and the Petroleum Technology Transfer Council. Representatives from the Minerals Management Service (MMS) also attended the peer review meetings. Findings were:

• Correlations using readily available data (water depth, # of wells, total depth, # of platforms, prices, etc.) were developed to determine lease production rate at the time of economic limit (or earlier depending upon the sensitivity analysis)
• With targeted royalty relief, additional production of up to 2.5 TCFE or 455 MMBOE is possible

See extended article in DOE newsletter, Inside Tech Transfer, Summer 2001, which can be accessed through http:// www.npto.doe.gov/ITT/nl.itt-issue.html.

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