Energy Department Announces Up to $65.5 Million to Advance Domestic Oil and Natural Gas Production and Delivery

WASHINGTON-The U.S. Department of Energy (DOE) today announced up to $65.5 million in federal funding for cost-shared research, development, and deployment projects to strengthen domestic oil and natural gas production, improve the efficiency and reliability of critical energy infrastructure, and convert underutilized resources into valuable products. The funding opportunity supports technologies that maximize the productivity of existing infrastructure, expand the capacity and performance of energy delivery systems, and strengthen the resilience of America's oil and natural gas supply chain.

The funding opportunity supports President Trump's Executive Order, "Unleashing American Energy," and advances the Trump Administration's commitment to ensuring Americans have access to affordable, reliable, and secure energy through the responsible development of our nation's abundant oil and natural gas supplies.

"Thanks to President Trump's leadership, the Energy Department is making strategic investments to strengthen America's oil and natural gas industry and reinforce the critical infrastructure that powers our economy," said DOE Under Secretary of Energy Kyle Haustveit. "This funding opportunity will help American producers eliminate waste, improve efficiency, and deliver the affordable, reliable, and secure energy that powers our economy and strengthens our national security."

America's extensive oil and natural gas production and delivery system supplies energy for manufacturing, chemical production, electric power generation, residential consumers, and a growing energy export sector. DOE has released a Notice of Funding Opportunity (NOFO) seeking innovative proposals that address the following areas:

• Maximize the Value of Stranded and Underutilized Resources: Develop and validate technologies to transform oil, natural gas, and associated product streams-including those that would otherwise be stranded, flared, or limited by contaminants-into high-value, readily transportable products. Funded projects will progress from laboratory-scale validation of new catalysts, reactor systems, and separation processes to field-testing modular, decentralized gas conversion systems and sour gas processing facilities in active production basins.
• Enhance Supply Chain Durability and Infrastructure Reliability: Develop, validate, and field-test advanced materials, innovative equipment, and novel infrastructure components to prevent product losses and bolster domestic chemical supply chains. This includes improving facility-level equipment and transport infrastructure-such as compressors, valves, piping, storage tanks, coatings, and alloys-to maximize safe and efficient energy delivery.
• Optimize Operations Through Digitalization and Smart Test Sites: Accelerate the adoption of digital technologies, smart facility concepts, and advanced analytics to improve operational efficiency, safety, and reliability within the upstream and midstream oil and natural gas sector. Projects will utilize full-scale, field-based validation platforms and test sites to deploy continuous monitoring systems, artificial intelligence-supported digital twins, and infrastructure optimization systems that increase saleable hydrocarbons, reduce operating costs, and track the technical maturity of emerging technologies.

Today's announcement builds on DOE's recent $150 million funding opportunity, which focuses on enhancing recovery efficiency from unconventional oil and gas reservoirs, advancing hydraulic fracture characterization technologies, and developing innovative approaches for produced water management.

Read more details about this notice of funding opportunity here. The application deadline is September 22, 2026, at 5:00 p.m. ET.

###