Technology spurs growth of U.S. coalbed methane
- Advanced Resources International Inc., Arlington, VA (United States)
- Gas Research Inst., Chicago, IL (United States)
Since the late 1980s, more than $2 billion in capital investments and continued technological advances have harnessed an entirely new source of natural gas -- coalbed methane (CBM). From its roots as an experimental coal mine degasification method, the CBM industry today has grown into significant component of US natural gas supply. This report, the second of a four part series assessing unconventional gas development in the US, examines the state of the CBM industry following the 1992 expiration of the Sec. 29 Nonconventional Fuels Tax Credit. Parts of the industry believed that CBM was largely a tax credit play that would die out once supports were removed. Now that several years have passed, however, it is becoming clear that the CBM industry has legs sturdy enough to carry it into the 21st century without special tax breaks. This article presents the post 1992 drilling and production data, coupled with detailed assessments of specific CBM projects, which together paint a portrait of a CBM industry that overall continues to thrive without tax credits, thanks to improving E and P technology and continued identification of favorable reservoir settings.
- OSTI ID:
- 163252
- Journal Information:
- Oil and Gas Journal, Vol. 94, Issue 1; Other Information: PBD: 1 Jan 1996
- Country of Publication:
- United States
- Language:
- English
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