Coal Seam Gas

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Enablers:

• 1970s OPEC oil embargo.
• Availability in nations with little or no traditional gas reserves (e.g. China, India).
• China's demand for coal and extensive coal mines.
• Coal mine safety.
• Development and dissemination of reservoir engineering and completion technology (1982 - 1987).
• Growth of natural gas based electricity generation.
• How natural gas prices.
• Methane reduction in coal mining leads to less coal mining accidents and lower greenhouse emissions.
• Price and tax incentives (US 1980 Crude Oil Windfall Profits Tax Act, Section 29)
• Private sector research (especially Amoco, now BP).
• Regulation on clean energy production.
• Rising awareness of carbon emissions.
• Rising demand for natural gas.
• Risk of nationalisation of traditional sources of natural gas.
• US public sector research (US Bureau of Mines, US Department of Energy, Gas Research Institute)

Inhibitors:

• Environmental impact of extracting coal seam gas - mainly the disposal of water.
• High initial costs.
• Lower gas rates than conventional reservoirs.
• Movement away from fossil fuels - regardless how clean - towards renewable energy sources.
• Low natural gas prices.

Paradigms:

• Brings a new view on previously uneconomical coal deposits. Previously if a coal deposit was uneconomical for mining it was left unexploited; now it is possible to extract gas from the coal bed for a much lower cost than mining.
• Changes the way China thinks about meeting energy requirements.
• Coal is now seen as a reservoir rock as well as a source rock.
• Methane emissions can be reduced profitably in coal mines.

Experts:

• [Arrow Energy]
• [ConocoPhillips]
• [Origin Energy]
• [U.S. Environmental Protection Agency]
• U.S. Geological Survey
• [Westside Corporation Limited]

Timing:

• Late 1970s - Coal seam gas exploration starts in earnest in the U.S.A.
• Mid 1980s - Established production in San Juan and Black Warrior Basins.
• 1990s - commencement of development in Australia

Web Resources:

• [Advanced Technology Group COAL BED METHANE - TECHNOLOGY STATUS]
• [Center for Energy and Global Development - Coal bed Methane: Vision for Clean Energy]
• [Energy Justice Network - Coal Bed Methane]
• [The Environmental Literacy Council]
• [Unconventional Gas Center]
• [US Geological Survey - Coalbed Methane - An Untapped Energy Resource and an Environmental Concern]
• [Wikipedia - Coalbed methane]