Washington (Platts)--17Sep2009/1145 am EDT/1545 GMT

The US National Petroleum Council agreed Thursday to conduct two studies requested by Energy Secretary Steven Chu to consider future options for transportation fuels and "prudent development" of North American natural gas and oil resources.

"It is the policy objective of the US to protect our nation from the serious economic and strategic risks associated with our excessive reliance on foreign oil and the destabilizing effects of a changing climate," Chu said in a letter Wednesday to Claiborne Deming, the chairman of the council. "All energy uses and supply sources must be re-examined in order to enable the transition towards a lower carbon, more sustainable energy mix."

The "Future Transportation Fuels" study would analyze US fuel prospects through 2030 for auto, truck, air, rail and water transport, including demand, sources, manufacturing, distribution and infrastructure, Chu said.

"Of particular interest is the council's advice on policy options and pathways for integrating new fuels and vehicles into the marketplace, including infrastructure development," Chu said.

The "Prudent Development of North American Natural Gas and Oil Resources" study would offer a fresh assessment of conventional and unconventional resources, the secretary said.

"Even as we transition to a lower-carbon energy future, fossil fuels will continue to play a major role in the nation's energy mix for many decades,"

Chu said. "An important part of this transition will be to recognize and responsibly develop the natural gas resources supply chain and infrastructure in North America." Chu cited "significant new developments" in North American gas and oil resources, including the identification of large new unconventional sources of gas and oil.

"Your study should describe the operating practices and technologies that will be used to minimize environmental impacts, and also describe the role of technology in expanding accessible resources," Chu said.

The council, a Department of Energy advisory group appointed by the energy secretary, normally undertakes one study at a time. Deming, former chairman and CEO of Murphy Oil, said the council has not done two studies simultaneously since 1990.

The heavier workload is considered indicative of the Obama administration's policies to transform the US to cleaner forms of energy.

--Bill Loveless, bill_loveless@platts.com