The Department of Energy is preparing to launch a fourth round of demonstration projects to help U.S. producers increase recovery from selected types of oil reservoirs.
The fourth solicitation will target "strandplain/barrier island" reservoirs, created along the shores of prehistoric oceans.
The House of Representatives has removed funding for the competition in the fiscal 1995 rescission bill, but DOE is proceeding with the hope the Senate will restore it.
DOE will issue the solicitation late this month. Projects are to be nominated by late June.
Strandplain/barrier island reservoirs exist in 14 states, mostly in Texas, Oklahoma, California, and the Rocky Mountains.
DOE said as much as 1 billion bbl could be recovered from all of the reservoirs at $12/bbl under current technology, but 740 million bbl of that is in danger of being abandoned by the turn of the century.
The department will award as much as $30 million to fund a maximum 50% of three to six projects to demonstrate near term production methods, and two to five contracts for more advanced technologies.
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