DOE Offers $65.5 Million to Boost Oil, Gas Production and Infrastructure
The U.S. Department of Energy is offering up to $65.5 million for projects aimed at improving oil and natural gas production, strengthening energy infrastructure and advancing digital technologies across the upstream and midstream sectors.
(P&GJ) — The U.S. Department of Energy (DOE) has announced up to $65.5 million in funding for research, development and demonstration projects intended to improve domestic oil and natural gas production, strengthen critical energy infrastructure and advance technologies across the upstream and midstream sectors.
The funding opportunity supports projects designed to improve the performance and reliability of existing energy infrastructure while expanding the nation's ability to produce, transport and process oil and natural gas.
DOE Under Secretary of Energy Kyle Haustveit said the initiative is intended to support technologies that improve efficiency and strengthen the industry's long-term competitiveness.
"This funding opportunity will help American producers eliminate waste, improve efficiency and deliver affordable, reliable and secure energy," Haustveit said.
DOE is seeking proposals in three primary areas.
The first focuses on technologies that convert stranded or underutilized oil and natural gas resources into higher-value products, including systems that reduce flaring, process sour gas and deploy modular gas conversion technologies in producing basins.
A second category targets infrastructure reliability through the development and testing of advanced materials and equipment for compressors, valves, piping, storage tanks, coatings and other assets intended to improve the safety and efficiency of oil and natural gas transportation.
The third area emphasizes digital technologies, including artificial intelligence-enabled digital twins, continuous monitoring systems and advanced analytics designed to improve operational efficiency, increase hydrocarbon recovery and reduce operating costs at upstream and midstream facilities.
The funding opportunity follows a separate $150 million DOE initiative announced earlier this year that supports technologies for unconventional oil and gas recovery, hydraulic fracture characterization and produced water management.
Applications are due Sept. 22, 2026.