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Providing coverage of Alaska and northern Canada's oil and gas industry
April 2013

Vol. 18, No. 16 Week of April 21, 2013

DNR signs MOU with Department of Energy

State, federal governments make formal agreement to collaborate in research to help develop Alaska unconventional resources

Alan Bailey

Petroleum News

Alaska’s Department of Natural Resources, or DNR, has signed a memorandum of understanding with the U.S. Department of Energy, to formally agree on improved collaboration between the two agencies in research and development associated with unconventional fossil energy resources in Alaska. Under the agreement, the Department of Energy, or DOE, will work through the National Energy Technology Laboratory and through collaborations with industry, academia and other partners to develop research and development opportunities in Alaska and to provide scientific expertise and resources.

DNR, for its part, will help resolve any land issues associated with DOE’s efforts and will coordinate logistical, permitting and regulatory needs, the memorandum says. State scientists will review data and data interpretations resulting from research and development activities, with the DNR Office of Project Management and Permitting provided a state point of contact for DOE. As far as legally possible, DOE will share technical data with the State of Alaska.

Work together

“This is a clear example of how the state and the federal government can work together on energy issues that will play a critical role in Alaska’s future,” said DNR Commissioner Dan Sullivan, in a press release issued after he and Christopher Smith, the Department of Energy acting assistant secretary for fossil energy, signed the memorandum of understanding on April 16.

“By establishing a framework for our continued work with the State of Alaska, we will advance America’s energy development and research, including our understanding of methane hydrates — a vast, untapped potential energy resource. And this agreement will help ensure Alaska continues to play a critical role in supplying America’s and the world’s energy needs,” Smith said.

Although the agreement focuses on unconventional resources such as methane hydrate and shale oil, the memorandum says that DNR and DOE may also consider the potential of conventional resources “such as natural gas.”

Methane hydrate

During a press conference following the signing, Smith said that DOE’s initial focus would likely be on Alaska field tests for methane hydrate production, a potential major source of natural gas. The memorandum of understanding does not commit any government research funding, but DOE has some budgeted funds for methane hydrate research, Smith said.

The Department of Energy has some of the world’s top scientists, who can assist Alaska in bringing forward a range of new energy resources, including heavy oil and shale oil, as well as methane hydrate, Sullivan said.






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