Liz Morel

The Washington Internships for Students of Engineering Program

Sponsored by: The American Institute for Chemical Engineers

August 2, 2006

lizmorel@kualumni.org

The Methane Hydrate Paradigm Shift: “Just do it” is Not Just for Nike Anymore

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?”

Issue Definition

• US Methane Hydrate Research

– Need for Industry:

• Future research = field work

• Diverse work teams

• Technology transfer

• Encouragement of production

Issue Definition

• US Methane Hydrate Research

– Industry Perceptions:

• Unreliable business partner - politics• Uncertain funding

– Program Results:

• Decreased Industry Participation• Loss of expertise, additional funding, and

equipment• Slowed research schedule

Methane Hydrates Background• “Frozen Methane”

– Methane (natural gas) trapped in water cages

– Hydrates may be contained in sediments like shale, sand, etc.

– Associated with conventional deposits

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

Goal Realization Process

To assess domestic methane

hydrate energy resource and production 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

History – Goal 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

• 2000 MHR&D Act, Research Goals

A. Determine the commercial viability?B. Methane hydrate locationC. Characterizing methane hydrate accumulationsD. Tech development required for efficient and

environmentally sound development of methane hydrate resources

E. Education and training F. Research on the environmental impact of

hydrate degassingG. Tech development for safe productionH. Exploratory drilling, well testing, and production

testing

History – Goal Development

History – Funding 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

Mil

lions o

f D

oll

ars

Authoriziations

Appropriations

U.S. Policy Recommendations

To expedite US research schedule, the US Congress should:

1. Appropriations equal to authorizations

2. Advanced appropriation process

3. Amendment: Domestic Methane Hydrate Assessment Initiative - authorize funds to be USGS, the BLM, and the MMS

Questions?

Thank you!

(This presentation is dedicated to all the oxen that were gored in the production of this power point

presentation.)

History – Goal Development

• 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 environmentally

sound development of methane hydrate resources;E. promote education and training in methane hydrate resource research and

resource development through fellowships or other means for graduate education and training;

F. conduct basic and applied research to assess and mitigate the environmental impact 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 on permafrost and non-permafrost gas hydrates in support of the activities authorized by this paragraph, including drilling of one or more full-scale production test wells.

Outline• Issue Definition

• Methane Hydrate Background

• The Importance of Methane Hydrates

• History of U.S. Methane Hydrate Goal Development

• History of U.S. Methane Hydrate Funding

• Options

• Policy Recommendations

Methane Hydrates Background

www.fossil.energy.gov/programs/oilgas/publications/methane_hydrates/Interagency_coor_hydrates.pdf

History – Goal Development

• 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