Canadian coalbed methane activity intensifies

Prospects for strong long-term gas demand are spurring renewed interest in coalbed methane (CBM) in western Canada.There has been minimal CBM activity the past 5 years, but several Alberta companies are expected to begin pilot projects this year to test the economics of CBM leases. More than 100 CBM wells were drilled in western Canada during 1989-95 before activity dropped off. Analyst Jill Angevine of First Energy Capital Corp., Calgary, expects CBM to provide a significant percentage of western Canada gas output in 5-10 years. Canadian producers are preparing to drill a number of coalbed methane wells like this one in the US. Photo courtesy of Phillips Petroleum Co.Click here to enla...

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