Does the Office of Fossil Energy set the prices I pay for natural gas or oil?

No – neither the Office of Fossil Energy (FE) nor the Department of Energy (DOE) regulates the price of natural gas or oil.  Those prices are determined by market forces. 

What does the Office of Fossil Energy do?

The Office of Fossil Energy (FE) is responsible for several high-priority initiatives, including research, development and deployment (RD&D) of technologies to help us use our fossil energy resources in cleaner and more environmentally sustainable ways. 

Managed by FE’s National Energy Technology Laboratory, this RD&D includes advancing and innovating clean coal technologies to capture and store carbon dioxide from coal-fired electricity generating and industrial plants.  We also support research and policies to ensure environmentally sustainable development of our oil and natural gas resources.   

But we’re not doing all this alone.  We work with external partners and international counterparts on a number of initiatives to ensure the sustainable use of fossil energy around the world.

Finally, FE is responsible for the nation's Strategic Petroleum Reserve, the Northeast Home Heating Oil Reserve, and the Northeast Gasoline Supply Reserve. These are key emergency response tools to protect Americans from energy supply disruptions.

You mentioned “clean coal.”  What exactly is "clean coal"?

Clean coal is a term used to describe coal usage that emits less carbon dioxide (CO2) and other pollutants than conventional methods.  Making coal cleaner requires technologies that can capture or otherwise reduce these emissions. 

We know we can do this, because we’ve done it before. Over the years, FE research efforts produced effective technologies now in widespread use to reduce emissions of sulfur dioxide (SO2), nitrogen oxides (NOx), and airborne particulates.  First developed during the 1970s and ‘80s, technical innovations now considered commonplace include low NOx burners, flue gas desulfurization scrubbers, and fluidized-bed combustors.  These technologies have dramatically reduced SO2 and NOx emissions from power plants.

A major challenge for the 21st century – and a primary research focus of FE’s Office of Clean Coal and Carbon Management – is finding ways to tackle rising levels of CO2 in the atmosphere, particularly by reducing CO2 emissions from power plants, through the use of carbon capture, utilization and storage (CCUS) technologies.  FE is a worldwide leader in developing CCUS technologies, which will be a crucial part of global strategies to confront rising CO2 levels and combat climate change.

What kind of work are you doing on oil and natural gas?

Safe and effective development of unconventional gas resources is a priority for the Obama Administration – and part and parcel of the President’s all-of-the-above energy strategy.

We’ve said we support new technologies. You may not know that we helped develop the processes that recover shale gas and oil, unlocking a titanic resource that we are extracting today.

Today, FE’s Office of Oil and Natural Gas is leading a research and development program centered on the prudent and sustainable development of our unconventional gas resources – resources that literally are being produced in our backyards, in close proximity to the places where we live and work.

Our collaboration with the Environmental Protection Agency and the Department of Interior’s U.S. Geological Survey aims to minimize the impacts of shale gas development.  The three agencies have created a multi-agency research plan which brings our three research programs together. 

At the same time, we are also exploring other promising unconventional resources, like methane hydrate

Finally, FE also issues authorizations to import and export natural gas, including liquefied natural gas (LNG) exports.

Why do we have a Strategic Petroleum Reserve?

In times of crisis, there can be disruptions to vital infrastructure—including deliveries of oil to the United States for refining and distribution. Managed by FE’s Office of Petroleum Reserves, the Strategic Petroleum Reserve – or SPR – holds more than 700 million barrels of crude oil.  In an emergency, this vast store of oil acts as an insurance policy against disruptions in our oil supplies.

Likewise the Northeast Home Heating Oil Reserve provides protection against disruptions in a region of the country that remains heavily dependent on heating oil. At the same time, the Northeast Gasoline Supply Reserve provides an emergency stock of gasoline in that part of the nation particularly vulnerable to shortages during an emergency.