This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Coalbed Methane: An Unconventional Energy Solution

Coalbed Methane: An Unconventional Energy Solution

As Asia struggles to cope with rising natural gas prices, many producers are shifting their attention to unconventional gas resources.

One of the main areas of interest in the hunt for more affordable energy is coalbed methane. CBM, called  coal seam gas in some parts of the world, is a naturally occurring methane gas with characteristics similar to those of conventional natural gas.

Coal mine degasification and safety techniques were first developed in the United States during the 1970s. Since then, the CBM sector has become commercially established, with ongoing advancements in extraction and production techniques allowing successful CBM production to be recorded across a wide range of coal types, ages and geological settings.

That said, the sector's success depends on certain criteria, namely: favorable geologic conditions (good coal thickness, gas content/saturation, permeability); low capital and operating costs; and favorable gas markets and sales prices.

How is CBM created?

When plant material, such as roots, bark and wood, is deposited in swamps or swampy lakes, it undergoes bacterial and chemical changes and eventually forms a peat deposit. Over millions of years, as the peat is buried deeper under layers of sand and mud, it develops into brown coal, then bituminous coal and eventually hard, anthracite coal. This sequence is known as the coalification process.

As this coal is formed, the decomposing organic material produces methane gas, as well as nitrogen, carbon dioxide and other gases. The burial process puts pressure on the coal, which keeps much of the gas contained.

It is this production process that makes CBM an unconventional gas: it is contained in difficult-to-produce reservoirs that require special completion, stimulation and/or production techniques to achieve economically viable production.

1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.19 -1.04%
FB $118.08 0.55%
GOOG $695.81 0.50%
TSLA $234.18 0.80%
YHOO $35.97 -0.11%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs