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@kualumni.org

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

The Importance of Methane Hydrates

http://

Energy Costs Energy Security US Economy The Environment

www.eia.doe.gov/oil_gas/natural_gas/analysis_publications/natbro/gasprices.htm

Goal Realization Process

Technology Development Broad Research Goals 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

Steps to Goal

Barriers

Goal

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

History Goal Development

2000 MHR&D Act, Research Goals
A. B. C. D. E. F. G. H. 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

History Funding Gap

Discontinuity
Authorizations and Appropriations Amounts (in $M)
40 35

30

Millions of Dollars

25

20

Authoriziations Appropriations

15

10

0 2003

2004

2005

2006 Fiscal Year

2007

2008

2009

Irregularity of funds

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.
B. C. D. E. F.

G.
H.

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.

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 Groups
1. 2. 3. 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/Methane_Hydrates_Advisory_Committee.html