Justice Department Won't Stop Oil, Gas Exploration

The U.S. Department of Justice announced that it will not challenge a proposal regarding oil and gas exploration. The proposal is a joint venture from a group of oil field service firms and the University of Texas at Austin where the goal is to use nanotechnology for the exploration and production of gas and oil.

The joint venture is called the Advanced Energy Consortium (AEC). The goal of the AEC is to develop subsurface nanosensors which are capable of being injected into gas and oil well bores. Because of their tiny size, the sensors would move out of the well bores into the pores of the surrounding geological structure in order to gather data regarding the physical characteristics of hydrocarbon reservoirs. The information that the sensors can gather would help with regards to the use of hydrocarbon resources.

In a letter from the Assistant Attorney General in charge of the Department's Antitrust Division, Thomas O. Barnett, to the AEC, the Department stated its position regarding the venture. Upon AEC's request for a business review letter from the Antitrust Division, it was the desire of AEC to have the department review its operation and formation.

The current members of AEC are Halliburton Energy Services, Inc., Schlumberger Technology Corporation, Shell International E & P, Inc., Occidental Oil and Gas Corporation, ConocoPhillips Company, Marathon Oil Company and BP America, Inc. The University of Texas at Austin will act as management of AEC. Should other companies wish to join AEC, two-thirds of the current members will have to approve any additional qualified firms and the University will also have to review their request to join AEC as well.

The nanotechnology research will be conducted by the University and the gas and oil members of AEC will contribute funding for the research Any inventions that result from the research will be owned by the University. Any member that contributes to the development of any invention for the AEC will receive a nonexclusive, irrevocable, royalty-free, global license to use the invention for noncommercial internal purposes.