Six small U.S. oil and natural gas drilling projects will receive about $30 million in federal funding for research and development to help achieve President Donald Trump's policy of boosting output of fossil fuels, the Department of Energy (DOE) said Jan. 3.
The projects, selected by the DOE under the direction of Congress, are in what is known as unconventional shale development. They currently produce less than 50,000 barrels per day each.
The selected projects are at sites including the Tuscaloosa Marine Shale in Louisiana and Mississippi that has been estimated to contain 7 billion recoverable barrels of light, sweet crude oil and the Huron Shale in Appalachia, which is rich in natural gas.
Funding the projects "will help us master oil and gas development in these types of rising shales," and bolster the DOE's efforts to strengthen U.S. energy dominance, the department said in a release.
The projects will increase understanding of the behavior of oil and gas reservoirs, advance the completion of wells, and improve drilling technologies at offshore operations, the DOE said.
The project receiving the most DOE money is a study of reservoirs by Texas A&M's Engineering Experiment Station. The research will enable operators of thousands of existing horizontal wells that have undergone fracking to determine which of them can be fracked again, the DOE said. It will receive $8 million.
The field lab at Virginia Polytech Institute and State University will receive nearly $8 million for investigating the potential for reservoirs in the Nora Gas Field.
Among the other projects is C-Crete Technologies LLC in Stafford, Texas which will receive $1.5 million to develop well cement to prevent offshore oil spills and leaks under high temperatures, high pressure and corrosive conditions.
Subsurface compression offers superior economics and environmental emission reductions for natural gas production.
Maersk Drilling has entered into an agreement to divest the combined drilling and production unit Mærsk Inspirer to Havila Sirius for a price of $373 million, the company said on May 27.
Helix Energy Solutions Group Inc. has entered into a new agreement for response resources with HWCG LLC, the company said on March 8.