Liz Morel

1
The Methane Hydrate Paradigm Shift Just do it
is Not Just for Nike Anymore

• Liz Morel
• The Washington Internships for Students of
  Engineering Program
• Sponsored by The American Institute for Chemical
  Engineers
• August 2, 2006
• lizmorel_at_kualumni.org

2
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?

3
Issue Definition

• US Methane Hydrate Research
• Need for Industry
• Future research field work
• Diverse work teams
• Technology transfer
• Encouragement of production

4
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

5
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

6
The Importance of Methane Hydrates
http//

• Energy Costs
• Energy Security
• US Economy
• The Environment

www.eia.doe.gov/oil_gas/natural_gas/analysis_publi
cations/natbro/gasprices.htm
7
Goal Realization Process
Broad Research Goals
Technology Development
To assess domestic methane hydrate energy
resource and production potential
Industry Participation
Domestic Methane Hydrate Mapping,
Characterization, Field Surveys, etc.
Improper Funding Irregularity and Amount
Goal
Steps to Goal
Barriers
8
History Goal Development

• Congressional Legislation
• Methane Hydrate Research and Development (MHRD)
  Act of 2000
• Energy Policy Act (EPACT) of 2005
• Amendment to the 2000 MHRD Act
• Royalty Relief

9
History Goal Development

• 2000 MHRD Act, Research Goals
• Determine the commercial viability?
• Methane hydrate location
• Characterizing methane hydrate accumulations
• Tech development required for efficient and
  environmentally sound development of methane
  hydrate resources
• Education and training
• Research on the environmental impact of hydrate
  degassing
• Tech development for safe production
• Exploratory drilling, well testing, and
  production testing

10
History Funding Gap

• Discontinuity
• Authorizations and Appropriations Amounts (in M)
• Irregularity of funds

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U.S. Policy Recommendations

• To expedite US research schedule, the US Congress
  should
• Appropriations equal to authorizations
• Advanced appropriation process
• Amendment Domestic Methane Hydrate Assessment
  Initiative - authorize funds to be USGS, the BLM,
  and the MMS

12
Questions?

• Thank you!
• (This presentation is dedicated to all the oxen
  that were gored in the production of this power
  point presentation.)

13
History Goal Development

• Congressional Legislation, Con.
• conduct basic and applied research to identify,
  explore, assess, and develop methane hydrate as a
  commercially viable source of energy
• identify methane hydrate resources through remote
  sensing
• acquire and reprocess seismic data suitable for
  characterizing methane hydrate accumulations
• assist in developing technologies required for
  efficient and environmentally sound development
  of methane hydrate resources
• promote education and training in methane hydrate
  resource research and resource development
  through fellowships or other means for graduate
  education and training
• 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)
• develop technologies to reduce the risks of
  drilling through methane hydrates and
• 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.

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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

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Methane Hydrates Background

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

• Coordination Groups
• The Methane Hydrate Advisory Committee (MHAC)
• The Interagency Coordination Committee (ICC)
• 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/Met
  hane_Hydrates_Advisory_Committee.html