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GAO-08-190R 1 (2007-11-06)

handle is hein.gao/gaocrptavql0001 and id is 1 raw text is: Sai Accountability * Integrity * Reliability United States Government Accountability Office Washington, DC 20548 November 6, 2007 The Honorable Byron L. Dorgan Chairman Subcommittee on Energy and Water Development Committee on Appropriations United States Senate Subject: Department of Energy: Oil and Natural Gas Research and Development Activities Dear Mr. Chairman: Domestic oil and natural gas production are important to meeting our nation's energy needs and represented more than 40 percent of the U.S. energy production in 2006. The Department of Energy (DOE) has undertaken research and development (R&D) for oil and natural gas since its inception in the late 1970s. Historically, the federal government has entered into cost-sharing agreements with universities, state agencies, and independent companies to help fund these R&D efforts, which were often long-term, high-risk projects with variable results. In recent appropriations, DOE's funding for oil and natural gas R&D was significantly reduced. In this context, you asked us to review DOE's R&D activities for oil and natural gas and provide information on (1) how much has been appropriated during the past 10 years, (2) how DOE expended these appropriations and its reported results to date, (3) the potential future results from continuing DOE-sponsored research in oil and natural gas technologies, and (4) the factors that could be considered when determining the federal government's role in oil and natural gas R&D. We briefed your staff on the results of our work on September 25, 2007. In response to your request, this report summarizes and formally transmits the information provided to your staff during that briefing. The enclosure to this report presents the briefing in its entirety. This report is based on analysis of prior GAO work, budget data for fiscal years 1997 through 2007, and discussions about the results of past oil and natural gas R&D expenditures and the potential future results of oil and natural gas R&D activities. We discussed these issues with officials from DOE and other federal government organizations, industry, states, academia, consulting groups, and the National Academy of Sciences. We performed our work between June 2007 and November 2007 in accordance with generally accepted government auditing standards. GAO-08-190R DOE's Oil and Natural Gas R&D

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