Efforts to Reduce Dependence on Conventional Gas Sources to Shift Focus towards Coal Bed Methane, Says TMR
With multinational companies, involved in the production of oil and gas by conventional means, entering into the global coal bed methane market , the competition within the market is increasing significantly, finds Transparency Market Research (TMR) in a recent study.
The market demonstrates a moderately concentrated structure. In 2011, the top three players, namely Queensland Gas, Arrow Energy, and Sydney Gas, accounted for a share of nearly 63% in the overall market. In order to expand their reach and minimize the competition, these players are aggressively focusing on mergers, acquisitions, and strategic alliances. Analysts at TMR expect the trend to continue over the next few years.
According to the study, the global market for coal bed methane stood at US$13.9 bn in 2015. Expanding at a CAGR of 3.20% between 2010 and 2018, the market is likely to present an opportunity worth US$15.3 bn by the end of the forecast period. The industrial application segment recorded a higher demand for coal bed methane than other application segments in 2011 with a share of nearly 40%. The trend is likely to remain the same during the period of forecast, states the research report.
Asia Pacific to Register Higher Rate of Growth
The report also studies this market on the basis of its geographical reach. As per the study, the market is spread across North America, Europe, Asia Pacific, and the Rest of the World. Among these, North America emerged as the leading regional market for coal bed methane in 2011 with a share of nearly 80%.
With the abundant presence of coal bed methane reserves in the U.S. and Canada, North America is likely to remain dominant throughout the forecast period. The growing demand for sustainable fuel and the need for reducing the dependability on conventional sources of natural gas are also expected to increase the usage of coal bed methane in North America over the years to come.
Asia Pacific, however, is likely to register a higher rate of growth than other regional markets due to the presence of massive untapped natural gas reserves in China, India, Australia, and Indonesia. The rise in the usage of liquefied natural gas (LNG) is also projected to fuel the demand for coal bed methane in the region over the next few years, reports the study.
Increasing Trend of Clean Fuel Drives Demand for Coal Bed Methane
“The increasing focus on reducing dependability on conventional gas sources for fuel is driving the demand for coal bed methane,” states a TMR analyst. With the trend of clean fuel catching up steadily, natural gas has surfaced as the most preferred fuel for transportation and domestic purposes. However, the increased depletion of conventional sources of gas has created a severe challenge for energy companies.
In order to meet the growing demand for energy from various end users, these companies have shifted their focus towards unconventional sources of gas, coal bed methane being a highly preferred option. With a number of unexplored reserves, the market for coal bed methane is anticipated to continue expanding in the years to come, states the report.
Time Consuming Exploration Process to Negatively Influence Production of Coal Bed Methane
In spite of forward-looking trends, the market may face challenges from the time consuming as well as capital intensive process of exploring, developing, and extracting coal bed methane from reserves. “The number of drill holes required for exploring coal bed methane is ten times more than that needed for natural gas, which makes the whole process extremely lengthy and exorbitant,” says an analyst.
The study presented here is based on a report by Transparency Market Research (TMR) titled “Coal Bed Methane Market - Global Industry Size, Market Share, Trends, Analysis, And Forecast 2010 - 2018.”
The global market for coal bed methane is segmented into:
- Power Generation
- North America
- Rest of the World (RoW)
Transparency Market Research (TMR) is a market intelligence company, providing global business information reports and services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants, use proprietary data sources and various tools and techniques to gather, and analyze information. Our business offerings represent the latest and the most reliable information indispensable for businesses to sustain a competitive edge.
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