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Vol. 6, No. 4
4th Quarter 2000


Potential "Difference Maker" Technologies within DOE's NGOTP Program

Rapid progress in potential "difference maker" technologies is being made in some projects within DOE's Natural Gas and Oil Technology Partnership Program (NGOTP). In these projects, the resources of the national laboratories, working alongside industry, are brought to bear on E&P problems.

Coiled-Tubing Deployed Microdrilling (and companion project for 7/8-in diameter borehole logging tools). The concept is to drill and log small diameter holes at a fraction of the cost of conventional wells. Goals are to develop the technology to drill and log a 5,000 ft hole within a couple of years, and sights are already set on deeper capabilities. R&D efforts to date have found no roadblocks to say it is not possible. Potential benefits are staggering. Holes to define reservoir limits could be drilled at a fraction of the cost of conventional definition wells. In mature reservoirs, microdrilling could be used to place permanent sensors to monitor fluid movement. Contact Don Dreesen @ Los Alamos National Laboratory (phone 505-667-8938, email dreesen@lanl.gov)

Acoustic Telemetry (MWD). Improved drilling performance often depends on improved MWD capabilities. Mud pulse MWD technology that has been the staple for years is limited in the amount of data that can be transmitted and options are needed for gas/air drilling systems. Acoustic telemetry, or transmission through drill pipe, is an exciting option that will transfer much more data. Concept has been proven in production tubing in a prior NGOTP project, and drill pipe should work even better. Importantly, a new company, Passband Downhole Communications, Inc., emerged with the sole purpose of delivering this technology to industry, which should happen within a couple years. Contact Doug Drumheller @ Sandia National Laboratories (phone 505-844-8920, email dsdrumh@sandia.gov)

For more details on these and other NGOTP projects, visit NGOTP's website (http://www.sandia.gov/ngotp).


Emergency Oil and Gas Loan Guarantee Program

The Emergency Oil and Gas Loan Guarantee Board recently announced that on November 1, 2000, it will open process applications for oil and gas loan guarantees from November 1, 2000, until March 31, 2001.

There are two significant changes in the Emergency Oil and Gas Loan Guarantee Program. First, applications will be processed as they are received and loan guarantees will be authorized immediately after the applications review is completed. There will be no batching of application’s and no designated dates for issuing authorizations. Second, applicants need not submit audited financial statements for the previous three years. Financial information required by the lending bank will ordinarily be adequate.

All the other requirements for loan guarantees remain, e.g. you must have experienced production or financial losses after January 1, 1997, and you must have been denied for substantially the same loan.

You can download application forms from the Department of Commerce website at: www.doc.gov. The website lists the names and addresses of banks that were authorized loan guarantees during the previous application window. Since finding banks willing to issue oil and gas loans will remain a problem for independent producers, it makes since to contact those banks already participating in the program.

If you have questions, please contact: Mr. Charles Hall, Director of the Emergency Oil and Gas Loan Guarantee Board, phone: 202-219-0583.

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NASEO "Guide to Energy Efficiency"

Whether oil prices are low or high, producers can save money by reducing or controlling their production costs. A recently published guide by the National Association of State Energy Officials (NASEO) contains a number of money-saving ideas based upon the experiences of various producers, field researchers, and recent tests at select oil production sites. Not all of the ideas and approaches are applicable to every situation—the variation from well-to-well and field-to-field makes such improvements an ongoing challenge.

Both small and large producers should find several ideas that they can implement to further reduce or control production costs. In most cases these ideas have been verified through one or more field tests conducted by established oil producers. It is hoped that these recommendations will help to maintain the viability of the domestic oil production industry here in the United States.

The guide’s cost-saving ideas are organized into three categories: (1) general oil production operations, (2) surface equipment, and (3) downhole equipment.

To receive a copy of the guide, contact NASEO at 703-299-8800 or visit their website at: http://www.naseo.org/energy_sectors/
fossil/oil_guide.htm


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New DOE R&D Solicitation Employs Industry Friendly Two-Step Process

On December 1 DOE's National Energy Technology Laboratory (NETL) released a broad-based solicitation for R&D proposals, asking for proposals in the upstream oil and gas sector and many other areas. In the upstream oil arena, NETL seeks proposals for ultrasonic oil well stimulation, reservoir efficiency processes, oil and gas environmental and advanced diagnostics and imaging technologies. Proposals are also sought for gas exploration, production and storage. Maximum project durations will be 36 months and a minimum of 20% cost share is required. Awards in the mentioned upstream areas are estimated to be in the $100,000 to $1 million range.

The solicitation outlines two separate closing dates (Dec. 20, 2000 & March 30, 2001) and employs a two-step application process for each date. Interested parties should submit a six-page pre-application by the closing date. Top-ranked pre-applicants in each Area of Interest must then submit comprehensive applications (by March 13 or June 12, 2001 respectively).

For more information visit the NETL website at http://www.netl.doe.gov/business/solicit


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