tight gas produced from the Rockies from 1978 to 2005. The remaining 65 percent is assigned to industry’s activity, GRI’s R&D program, and Section 29 tax credits.

In return for a DOE R&D investment of a little over $180 million (1999 dollars) to date and $200 million through 2005, DOE calculates $1626 million (also in 1999 dollars) in increased net revenues and cost savings to gas producers in the Rockies, with a benefit to cost ratio of 8.9; inclusion of the industry cost share in the program would reduce that ratio somewhat. DOE further calculates $591 million (1999 dollars) from royalties on federal lands and from increased state severance taxes due to displacement of imports. With a 35 percent DOE share, a net benefit of about $800 million is assigned to DOE (see Table F-34).

Future application of tight gas sand technology in emerging plays and basins will substantially enlarge this part of the resource base. Tight gas production in the Rockies should reach 950 Bcf in 2010, providing an environmentally clean fuel and greater domestic supply. The application of resource assessments, natural fracture detection and prediction technology, and advanced drilling and stimulation, means that less than half as many wells will need to be drilled to yield the same volume of reserves.

Lessons Learned

A significant part of the success of the Western Gas Sands program was its successful transition from a basic research program supported entirely by government to an applied research and demonstration program in which industry took over increasing support of the program. Coupled with governmental tax credit incentives under Section 29 of the Natural Gas Policy Act, this targeted research program brought an important source of natural gas into the national supply stream earlier and cheaper than it would otherwise have been brought in.

REFERENCES

Bloomberg Press Release. 2000. ExxonMobil, BP and Phillips Plan Alaska Gas Pipeline.


Environmental Protection Agency (EPA), Office of Air Quality Planning and Standards. 1998. Study of Hazardous Air Pollutant Emissions from Electric Steam Generating Units: Final Report to Congress. EPA-453/R-98–004a. Washington, D.C.: EPA.


Galloway, W.E., et al. 1983. Atlas of Texas Major Oil Reservoirs: Bureau of Economic Geology. University of Texas at Austin Special Publication. Austin, Tex.: University of Texas.


National Energy Technology Laboratory. 1999. Vision 21 Program Plan: Clean Energy Plants for the 21st Century. Morgantown, W.Va.: National Energy Technology Laboratory.

National Research Council (NRC). 1990. Fuels to Drive Our Future. Washington, D.C.: National Academy Press.


Office of Fossil Energy (OFE), Department of Energy. 2000a. OFE Letter response to questions from the Committee on Benefits of DOE R&D in Energy Efficiency and Fossil Energy: Fluidized Bed Combustion (FBC) Technology Area, December 11.

OFE. 2000b. OFE Letter response to questions from the Committee on Benefits of DOE R&D in Energy Efficiency and Fossil Energy: Gas-to-Liquids Technology, December 4.

OFE. 2000c. OFE Letter response to questions from the Committee on Benefits of DOE R&D in Energy Efficiency and Fossil Energy: Indirect Coal Liquefaction Program, December 4.

OFE. 2000d. OFE Letter response to questions from the Committee on Benefits of DOE R&D in Energy Efficiency and Fossil Energy: IGCC Technology Area, December 20.

OFE. 2000e. OFE Letter response to questions from the Committee on Benefits of DOE R&D in Energy Efficiency and Fossil Energy: Flue Gas Desulfurization Program, December 4.

OFE. 2000f. OFE Letter response to questions from the Committee on Benefits of DOE R&D in Energy Efficiency and Fossil Energy: NOx Control Program, December 4.

OFE. 2000g. OFE Letter response to questions from the Committee on Benefits of DOE R&D in Energy Efficiency and Fossil Energy: Mercury and Other Air Toxics Program, December 6.

OFE. 2000h. OFE Letter response to questions from the Committee on Benefits of DOE R&D in Energy Efficiency and Fossil Energy: Waste Management/Utilization (Coal Combustion Byproducts) Program, December 6

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OFE. 2000i. OFE Letter response to questions from the Committee on Benefits of DOE R&D in Energy Efficiency and Fossil Energy: Turbine Systems Technology Area, November 22.

OFE. 2000j. OFE Letter response to questions from the Committee on Benefits of DOE R&D in Energy Efficiency and Fossil Energy: Stationary Fuel Cells Program, December 6.

OFE. 2000k. OFE Letter response to questions from the Committee on Benefits of DOE R&D in Energy Efficiency and Fossil Energy: Enacted Appropriations for the Stationary Fuel Cells Program, November 11.

OFE. 2000l. OFE Letter response to questions from the Committee on Benefits of DOE R&D in Energy Efficiency and Fossil Energy: Magnetohydrodynamics Program, November 27.

OFE. 2000m. OFE Letter response to questions from the Committee on Benefits of DOE R&D in Energy Efficiency and Fossil Energy: Drilling, Completion, and Stimulation Program, December 4.

OFE. 2000n. OFE Letter response to questions from the Committee on Benefits of DOE R&D in Energy Efficiency and Fossil Energy: Downstream Fundamentals Area Research, December 6.

OFE. 2000o. OFE Letter response to questions from the Committee on Benefits of DOE R&D in Energy Efficiency and Fossil Energy: Summary of Benefits and Costs of DOE/NETL’s Eastern Gas Shales Program, December 4.

OFE. 2000p. OFE Letter response to questions from the Committee on Benefits of DOE R&D in Energy Efficiency and Fossil Energy: Enhanced Oil Recovery Program, December 18.

OFE. 2000q. OFE Letter response to questions from the Committee on Benefits of DOE R&D in Energy Efficiency and Fossil Energy: Field Demonstrations of Technology and Processes, December 6.

OFE. 2000r. OFE Letter response to questions from the Committee on Benefits of DOE R&D in Energy Efficiency and Fossil Energy: Oil Shale Technology, December 12.

OFE. 2000s. OFE Letter response to questions from the Committee on Benefits of DOE R&D in Energy Efficiency and Fossil Energy: Seismic Technologies, December 4.

OFE. 2000t. OFE Letter response to questions from the Committee on Benefits of DOE R&D in Energy Efficiency and Fossil Energy: NETL Gas Supply Projects Division, Western Gas Sands Technology Area, December 6.

OFE. 2001a. OFE Letter Response to questions from the Committee on Benefits of DOE R&D in Energy Efficiency and Fossil Energy: Coal Preparation Program. January 25.

OFE. 2001b. OFE Letter Response to questions from the Committee on Benefits of DOE R&D in Energy Efficiency and Fossil Energy: Direct Coal Liquefaction. January 8.

OFE. 2001c. OFE Letter response to questions from the Committee on Ben-



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