Energy Department Announces Up to $150 Million to Boost Unconventional Oil and Gas Recovery, Advance Hydraulic Fracture Characterization, and Revolutionize Produced Water[...]

WASHINGTON-The U.S. Department of Energy's (DOE) Hydrocarbons and Geothermal Energy Office (HGEO) today announced up to $150 million in federal funding for cost-shared projects aimed at advancing three critical priorities for the U.S. oil and natural gas industry-dramatically improving recovery efficiency from unconventional oil and gas reservoirs, advancing hydraulic fracture characterization technologies, and developing innovative solutions for produced water management. This initiative advances resident Trump's Executive Order , "Unleashing American Energy," and the Secretarial Order "Unleashing the Golden Era of Energy Dominance," to provide affordable, reliable, and secure energy to all Americans through the responsible development of our nation's abundant domestic oil and natural gas supplies.

"Under President Trump's leadership, we are unleashing America's energy potential to secure our nation's future," said DOE Acting Assistant Secretary of the Hydrocarbons and Geothermal Energy Office Curt Coccodrilli. "By unlocking more of our domestic oil and natural gas resources, improving our understanding of hydraulic fracturing, and innovating in produced water management, we are not only creating jobs and lowering energy costs for American families, we are also driving innovation that will benefit our economy for generations to come."

DOE has released a Notice of Funding Opportunity (NOFO) seeking innovative proposals that address technical, economic, and environmental barriers across the following areas, with a focus on increasing domestic energy production and strengthening American energy dominance:

• Enhanced Recovery from Unconventional Oil and Gas Reservoirs: With recovery rates from unconventional reservoirs often below 10%, significant oil and gas resources remain untapped. Funding in this area will support the rapid field deployment of novel technologies and processes-including exploring the potential of carbon dioxide as an injectant-to improve oil and gas extraction, increase the recovery factor, and lower the break-even cost of primary recovery operations to increase the efficiency of our national resources and provide more affordable energy.
  
• Advanced Characterization of Fracture Propagation, Proppant Behavior, and Well Diagnostics: Advanced hydraulic fracture characterization builds upon years of successful partnerships between DOE, industry, and research institutions. In unconventional reservoirs, productivity is governed by hydraulic fracturing, making a detailed understanding of fracture propagation, proppant behavior, and reservoir response critical to efficient field development. Funding in this area will support advanced diagnostics and characterization technologies to improve operational effectiveness and enhance resource recovery.
  
• Advanced Field-Testing of Multi-Scale Produced Water Treatment Technologies and Processes: Produced water management remains a growing challenge across major U.S. producing basins. In 2025 alone, Permian Basin operations produced an estimated 22 million barrels of water per day, while operators in the Appalachian Basin and other regions continue to face significant water handling and disposal costs. Funding in this area will support the field testing of advanced produced water treatment technologies and processes that can reduce subsurface disposal, facilitate beneficial reuse, and mitigate associated environmental risks.

Read more details about this NOFO here. The application deadline is October 5, 2026 at 5:00 p.m. ET.

Learn about how HGEO is unleashing the full potential of America's hydrocarbon and geothermal resources to provide affordable, reliable, and secure energy here.

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