Abstract: Canadian Coalbed Methane Economics

Leslie A. Smith, Eric Allen, D. J. Nikols

Canada has vast coal resources, between 324 and 354 × 10¹² tonnes primarily located in three distinct geographic and geologic areas: intermontane basins of British Columbia, the Rocky Mountain front ranges, foothills and Great Plains of Alberta and the Appalachian basins in Nova Scotia. The potential in place CBM resource is extremely large, and has not yet been accurately estimated. Conventional natural gas resources are also substantial. CBM will only be developed if profitable, high volume production areas are found which can compete with conventional natural gas. Development cost, royalty structures and the regulatory environment in Canada are reviewed. At current gas prices and with the present expectation of future price levels, there are few potential economical y viable projects in Canada and consequently the level of CBM activity is modest. The economic production potential of typical CBM properties is discussed in relation to the over all Canadian energy picture and specific local conditions.

AAPG Search and Discovery Article #90986©1994 AAPG Annual Convention, Denver, Colorado, June 12-15, 1994