The Leading Edge; May 2002; v. 21; no. 5;
p. 452-455
© 2002 Society of Exploration Geophysicists
Recent role of geophysics in U.S. coal and CBM development
Lawrence M. Gochioco
GX Technology Corporation, Houston, Texas, U.S.
Corresponding author: lgochioco@gxt.com
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Ten years ago, some major U.S. oil companies began disposing of coal assets and properties because they were deemed not to be part of the core business. Passage of the Clean Air Act Amendment in 1990 kept commodity prices soft, and increasing government regulations likely contributed to their lack of interest. However, when natural gas prices surpassed $5/1000 ft3 and reached an all-time high of about $10/1000 ft3 in 2000, development and production of unconventional natural gas took on a frenzied pace.
Coalbed methane (CBM), once a scourge of mining operations, is now playing a key role in revitalizing the U.S. coal fields, resulting in increased exploration and development activities, even in the once-avoided high-sulfur gassy coal fields of the Appalachian and Illinois Basins. A few coal companies evolved into energy companies by expanding into natural gas production and power generation. Independents who had the foresight to develop their CBM resource since the early 1990s realized high returns on their investments because prospecting for CBM is largely low-cost and low-risk. CBM now accounts for about 7.5% of total domestic natural gas production. A recent U.S. Geological Survey (USGS) study indicates the country has more than 700 trillion ft3 CBM in place, with perhaps 100 trillion ft3 economically recoverable with existing technology.
The USGS estimates the United States has about 1.7 trillion tons of identified coal reserves. Because coal quality and recovery techniques vary from one basin to another, the recoverable reserve base is estimated at 286 billion tons. Domestic coal companies have been producing about 990 million metric tons of coal per year over the last five years. At this current rate of mining, the reserve base could last another 290 years. Figure 1 shows the five major coal-producing basins in the conterminous United States.
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Figure 1. Major coal basins in the . . . [Full Text of this Article] |
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