# Introduction to White Pages

Background

-   Flexible Resilent Supply: Efficient Production of Conventional
    Resercves

-   Replacement and Expansion of Reserves:

-   Exploration and Production of New Convential Reserves

-   Transformation of Non-Conventional Reserves to Conventional Reserves
    (tar-sands and hydrates)

-   Through Technology (e.g., ultra-deep water once considered
    unconventional)

# Energy and Security

We present a series of white papers to describe Sandia's strategies in
critical areas to promote the nation's energy security. These white
papers are living documents that will grow and morph as we embark on the
paths described. The initial white papers cover:

-   ***Energy Storage:*** Next generation concept and technology for low
    cost, geographical flexible, location-demand-driven underground gas
    storage. Such new storage capabilities will be necessary
    infrastructure for flexible and resilient energy supply and be
    critical to distributed power concepts in a infrastructure limited
    energy transportation environment

-   ***Gulf of Mexico Ultra Deep Water Drilling and Production:*** The
    Gulf of Mexico, especially ultra-deep water, is the remaining great
    domestic frontier for conventional oil and gas production. The
    efficient production (in terms of cost, extraction efficiency and
    minimization of environmental impacts) will be a keystone in
    promoting domestic production to provide fuel supply security

White papers that are planned for FY02

-   ***Energy and Water:*** Thermoelectric power generation (coal, oil,
    natural gas, and nuclear) accounts for 49% of the US water use per
    year. Water used or affected in coal mining, natural gas and oil
    production accounts for another 4%. The development of new
    generation capacity in some states is now limited by conflicts over
    water access. Development of major new supplies such as coal-bed
    methane or impacted by produced water issues. The coupled role of
    water and energy is a important tie to the Sandia Water initiative.

-   ***Drilling Technology***: Cheaper, faster, safer drilling
    technologies will be essential to timely development of domestic
    geothermal and fossil energy supplies. Currently program currently
    dispersed and fragmented within DOE. This white paper will develop a
    strategy focused on working with industry, NETL, DOE(FE), (EM), (EE)
    to develop unified DOE drilling program

-   

Fossil fuels will continue to be a major component of the US energy mix
for the foreseeable future. The cost of these fuels has been low for a
number of years. These low prices have led to increased use of coal for
power generation, more dependence on foreign oil, a decline in the
domestic oil and gas exploration and production infrastructure, and
reluctance on the part of Congress to fund additional research in fossil
energy. Now, the situation is changing. The recent increase in oil
prices has once again raised the possibility of oil shortages and higher
prices with associated impacts on the economy. The US oil and gas
infrastructure is no longer capable of increasing domestic production to
offset decline in OPEC production. The nation's security is once again
at risk. Many expect that the wild fluctuations in fuel prices will
drive additional domestic suppliers out of business, and there are
predictions that domestic oil production will decline by an additional
500,000 bbl/day in the next two years.

The picture gets even more dismal when the natural gas picture is
included. The domestic independent oil and gas producers supply most of
the natural gas needs in the US. The EIA forecasts that the demand for
natural gas will increase from the current 20 TCF to 32 TCF by 2020.
North American reserves are available to meet this increased demand, but
economic recovery of these reserves requires that the US domestic
infrastructure remain strong, that drilling efficiency is increased, and
that the finding rates are increased through improvements in exploration
technology. With current technology and a decaying infrastructure, the
US will not be able to meet projected natural gas demand. These factors
will likely drive Congress and DOE to increase their investments in
upstream fossil energy research in the next few years. This will be
driven by the increase in demand for natural gas. Consequently, we are
reorienting our program to put more emphasis on upstream technology for
natural gas, e.g., improved drilling technology and 4-D seismic.