THE DOES NATURAL-GAS RESEARCH-AND-DEVELOPMENT PORTFOLIO - AN ANALYSIS OF AN INDUSTRY PROPOSAL

The natural gas industry has proposed an increase in the US DOE gas R&D budget from about US$100 million to about US$250 million per year for each of the next 10 years. The proposal includes four programmes: natural gas supplies, fuel cells, natural gas vehicles and stationary combustion systems. This paper assesses the gas industry proposal and recommends a natural gas R&D strategy for the DOE. The methodology is a conceptual framework based on an analysis of market failures and the energy policy objectives of the DOE's National Energy Strategy. The gas programmes that would contribute to energy policy goals are identified.