Oil and gas funding is once again gaining ground in the United States’ energy strategy. The Department of Energy (DOE) is keeping two funding opportunities open, totaling up to $215.5 million, aimed at advancing technologies to improve hydrocarbon recovery, modernize infrastructure, strengthen monitoring capabilities, and advance new solutions for the treatment and beneficial use of produced water.
The programs remain open for applications, with deadlines in September 2026. The first funding opportunity provides up to $65.5 million and accepts applications through September 22, while the second provides $150 million and will remain open through September 8. Both are administered through the DOE’s Hydrocarbons and Geothermal Energy Office (HGEO).
The initiative creates opportunities for companies, universities, national laboratories, and nonprofit organizations developing technologies applicable to different segments of the industry, from production and resource recovery to infrastructure and management of water associated with operations.
Oil and gas funding prioritizes recovery and produced water
The Advancing Oil and Natural Gas Production and Delivery funding opportunity, identified as DE-FOA-0003634, opened on July 23 and provides up to $65.5 million for research, development, and technology deployment projects with cost-sharing requirements.
The DOE is seeking technologies capable of increasing the productivity of existing infrastructure, improving the efficiency and reliability of energy systems, and strengthening the U.S. oil and natural gas supply chain.
The funding opportunity is organized into three main areas. The first, called Enhanced Resource Utilization and Production Technologies (ERUPT), includes laboratory validation of catalysts and unit operations, as well as field validation of complete system prototypes.
The second is Resilient Infrastructure Technologies Enhancement (RITE), while a third category, Hydrocarbon Infrastructure Test Sites (HITS), focuses on testing facilities for hydrocarbon infrastructure.
The DOE expects to make up to 16 awards under this funding opportunity, with a general minimum cost-sharing requirement of 20% for recipients. Applications may be submitted until 5:00 p.m. Eastern Time on September 22, and selection notifications are expected in December 2026.
DOE allocates $150 million to recovery and produced water
The second funding opportunity accounts for the largest share of the resources. The Improved Oil and Gas Recovery and Produced Water Management Technologies program, DE-FOA-0003627, provides up to $150 million for projects related to unconventional oil and gas recovery, hydraulic fracture characterization, and new technologies for managing produced water.
One of the priorities is to improve understanding of fracture behavior, proppant behavior, and reservoir response. These capabilities could help optimize fracturing operations and increase the efficiency with which resources in unconventional formations are recovered.
Produced water represents the other major technology focus of the funding opportunity. According to the DOE, operations in the Permian Basin generated approximately 22 million barrels per day of produced water during 2025. The increase in these volumes is driving the need for scalable technologies that can treat the water, reduce reliance on deep-well disposal, and expand opportunities for beneficial reuse.
For this reason, the program includes field testing of technologies and treatment processes at different scales. The goal is to evaluate solutions that could reduce underground disposal and associated risks, including those related to induced seismicity and potential interaction with underground sources of drinking water.
Applications for this funding opportunity must be submitted by 5:00 p.m. ET on September 8, 2026.
Technological innovation gains ground in the U.S. upstream sector
The two funding opportunities show that funding is not limited to increasing production volumes. The DOE is allocating resources to technological challenges that directly affect operational efficiency, infrastructure, and resource utilization.
On the one hand, the $65.5 million is intended to advance technologies for production and energy delivery systems. On the other, the $150 million focuses on unconventional reservoirs, advanced characterization, and one of the largest operational challenges facing producing regions: water management.
The official HGEO portal currently lists both opportunities with an “Accepting Applications” status, confirming that the $215.5 million remains available through the corresponding competitive processes.
For technology developers and research organizations, the coming weeks will be decisive. The first deadline is September 8, followed by the second on September 22. From that point, the process will determine which technologies move forward toward funding and which could subsequently reach validation and deployment stages within the U.S. industry.
Sources: U.S. Department of Energy
