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Economic evaluation of coalbed methane production in China

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  • Luo, Dongkun
  • Dai, Youjin

Abstract

Roaring natural gas demand, energy security and environment protection concerns coupled with stringent emission reduction requirement have made China's abundant coalbed methane (CBM) resource an increasingly valuable energy source. However, not all of China's CBM resource is economic to develop under current technological condition and economic situation. In order to locate the CBM resource with economic viability to develop in China, economic evaluation of CBM production is conducted by applying net present value (NPV) method. The results indicate that more than half of CBM resource in China is economic to develop. It shows that CBM price, production rate and operating costs are the three major factors with most impact on the economic viability of the CBM development in target areas in China. The result also demonstrates that the economic limit production is roughly 1200 cubic meters per day. These economic evaluation results provide important information for both CBM companies and China government.

Suggested Citation

  • Luo, Dongkun & Dai, Youjin, 2009. "Economic evaluation of coalbed methane production in China," Energy Policy, Elsevier, vol. 37(10), pages 3883-3889, October.
    • Handle: RePEc:eee:enepol:v:37:y:2009:i:10:p:3883-3889
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    Citations

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    Cited by:

    1. Hamawand, Ihsan & Yusaf, Talal & Hamawand, Sara G., 2013. "Coal seam gas and associated water: A review paper," Renewable and Sustainable Energy Reviews, Elsevier, vol. 22(C), pages 550-560.
    2. Hosseini, Seyed Ehsan & Wahid, Mazlan Abdul, 2014. "Development of biogas combustion in combined heat and power generation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 40(C), pages 868-875.
    3. Luo, D.K. & Dai, Y.J. & Xia, L.Y., 2011. "Economic evaluation based policy analysis for coalbed methane industry in China," Energy, Elsevier, vol. 36(1), pages 360-368.
    4. Hosseini, Seyed Ehsan & Wahid, Mazlan Abdul & Aghili, Nasim, 2013. "The scenario of greenhouse gases reduction in Malaysia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 28(C), pages 400-409.
    5. Fan, Lurong & Xu, Jiuping, 2020. "Authority–enterprise equilibrium based mixed subsidy mechanism for carbon reduction and energy utilization in the coalbed methane industry," Energy Policy, Elsevier, vol. 147(C).
    6. Shouqing Lu & Yuanping Cheng & Jinmin Ma & Yuebing Zhang, 2014. "Application of in-seam directional drilling technology for gas drainage with benefits to gas outburst control and greenhouse gas reductions in Daning coal mine, China," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 73(3), pages 1419-1437, September.
    7. Fan, Lurong & Ma, Ning & Zhang, Wen, 2023. "Multi-stakeholder equilibrium-based subsidy allocation mechanism for promoting coalbed methane scale extraction-utilization," Energy, Elsevier, vol. 277(C).
    8. Liu, Jianye & Li, Zuxin & Duan, Xuqiang & Luo, Dongkun & Zhao, Xu & Liu, Ruolei, 2021. "Subsidy analysis and development trend forecast of China's unconventional natural gas under the new unconventional gas subsidy policy," Energy Policy, Elsevier, vol. 153(C).
    9. Wanqing Wang & Shuran Lyu & Yudong Zhang & Shuqi Ma, 2019. "A Risk Assessment Model of Coalbed Methane Development Based on the Matter-Element Extension Method," Energies, MDPI, vol. 12(20), pages 1-30, October.
    10. Lu, Hongfang & Xu, FengYing & Liu, Hongxiao & Wang, Jun & Campbell, Daniel E. & Ren, Hai, 2019. "Emergy-based analysis of the energy security of China," Energy, Elsevier, vol. 181(C), pages 123-135.
    11. Zhang, Bo & Chen, G.Q. & Li, J.S. & Tao, L., 2014. "Methane emissions of energy activities in China 1980–2007," Renewable and Sustainable Energy Reviews, Elsevier, vol. 29(C), pages 11-21.
    12. Xin Li & Jie Zhang & Rongxin Li & Qi Qi & Yundong Zheng & Cuinan Li & Ben Li & Changjun Wu & Tianyu Hong & Yao Wang & Xiaoxiao Du & Zaipeng Zhao & Xu Liu, 2021. "Numerical Simulation Research on Improvement Effect of Ultrasonic Waves on Seepage Characteristics of Coalbed Methane Reservoir," Energies, MDPI, vol. 14(15), pages 1-15, July.

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