Unconventional Natural Gas

What is unconventional natural gas? Unconventional gas is natural gas extracted from coalbeds and other low-permeability sandstone and shale formations. It has become an increasingly important component of total U.S. domestic production. Over the next two decades, the role of unconventional gas in meeting the nation’s energy needs is projected to increase by approximately 60 percent.

Coalbed reservoirs are among the richest carbon concentrations on earth and one of the most prolific sources of unconventional natural gas. North American natural gas reserves from CBM are projected to increase to 7.5 trillion cubic feet (TCF) per year by 2020, up from 4.5 TCF in 1998, making CBM the fastest-growing source of natural gas in the world and a reliable source of domestic energy.

This energy resource provides an important source of natural gas at a crucial time. By 2020, U.S. natural gas consumption is expected to range from 31.8 TCF to 37.5 TCF, as compared with 22.6 TCF in 2001. Natural gas consumption for electricity generation alone accounts for approximately one-third of demand. As consumption rises, North American conventional natural gas reserves are shrinking. To help meet this demand, producers increasingly rely on production from unconventional resources such as coalbed methane (CBM).

CBM production is attractive for several reasons. Coal stores six or seven times as much gas as a conventional natural gas reservoir of equal rock volume due to the large internal surface area of coal. Much coal is accessible at shallow depths, making well drilling and completion relatively inexpensive. Finding costs are also low since methane occurs in coal deposits, and the location of the nation’s coal resources is well known. CDX Gas’ patented technology, known as the Z-Pinnate® Horizontal Drilling and Completion System, makes drilling and capturing that gas more economically feasible and also has a positive impact on greenhouse emissions.