Published By : 15 Sep 2016 | Published By : QYRESEARCH
The coal bed methane market is growing significantly and one of the prime reasons behind this growth is the focus towards decreasing the dependence on conventional gas sources. The growing concern regarding the high emission of greenhouse gases is also expected to propel the market towards growth. Regulatory bodies have imposed stringent regulations regarding the extraction of oil and gas. According to the latest report published by Transparency Market Research (TMR), the global coal bed methane market is expected to rise from US$13,904.8 mn in 2015 to US$15,318.9 mn by 2018.
Untapped Reserves in Asia Pacific to Create Opportunities for Coal Bed Market
Huge opportunities awaits in the Asia Pacific market as countries such as China, India and Indonesia are rich in coal and have numerous untapped coal bed methane (CBM) reserves. Also, the growing market for LNG (liquefied natural gas) is providing immense opportunities for the players in the global coal bed methane market. The Asian market is also the leading market of LNG with Japan being the world’s largest consumer and economies such as China, India, and Korea are facing high demand for LNG. These two factors will ensure the growth of the market in the coming two years and are thus acting as opportunities for growth in the market.
Increased Time Consumption for Exploration and Extraction of CBM to Act as Challenge for Market
The time consumed for exploring, developing and extracting coal bed methane gas from its reservoir is 10 times than the time needed to explore and extract natural gas. This leads to huge amount of expense along with the increased time consumed. As such, more time required for extraction and exploration is hindering the growth of the market.
Another factor that challenges the growth of the market is the high cost of pumping out the associated water produced in large amounts during CBM production. The associated water produced is very high as compared to the conventional source of gas production.