Economics for enhanced coalbed methane (ECBM) and CO2 sequestration with horizontal wells

Sinisha A. Jikich, Grant S. Bromhal, W. Neal Sams, F. Burcu Gorucu, Turgay Ertekin, Duane H. Smith

Research output: Contribution to conferencePaperpeer-review

7 Scopus citations


Injection of CO2 into unmineable coal seams is a promising technology for reducing anthropogenic gas emissions and increasing ultimate recovery of coalbed methane. An economic evaluation of an enhanced coalbed methane (ECBM)/CO2 sequestration project in coalbed with properties similar to those found in the Northern Appalachian basin is presented. PSU-COALCOMP, a two-phase, multi-dimensional, dual porosity compositional coalbed methane reservoir simulator is used. The most important economic parameter to be considered in the design of the project is the net cost of CO2 (CO2 cost minus CO2 credit). A negative net cost of CO2 in the $0-0.75 range produced positive net present values (NPV) for reservoir permeabilities over 2mD. Lower permeabilities increase production times and costs, having detrimental effects on the economics of the project. Lower injection pressures are favorable for ECMB economics, but the opposite can be true for CO2 sequestration projects that can benefit from CO2 credits. The time to start CO2 injection have negligible influence on the final project economics. The analysis demonstrates the significance of reservoir size, proper design and implementation, and tax incentives for economic viability of projects for ECBM production, and coalseam sequestration. This is an abstract of a paper presented at the SPE Eastern Regional Meeting (Charleston, WV 9/15-17/2004).

Original languageEnglish (US)
StatePublished - 2004
EventSociety of Petroleum Engineers, SPE Eastern Regional Meeting 2004 - Charleston, WV, United States
Duration: Sep 15 2004Sep 17 2004


OtherSociety of Petroleum Engineers, SPE Eastern Regional Meeting 2004
Country/TerritoryUnited States
CityCharleston, WV

All Science Journal Classification (ASJC) codes

  • General Energy


Dive into the research topics of 'Economics for enhanced coalbed methane (ECBM) and CO2 sequestration with horizontal wells'. Together they form a unique fingerprint.

Cite this