CBM is coal bed methane. growing now but will be significant source of ngas over time. Less than 10% but one of few types of ngas that is growing in US and Canada. Canada is behind us in development but they have significant coal also. Typically trapped in coal. Coal typically is in large veins that can run for miles. Some shallow, some deep underground. New horizontal drilling techniques allow following vein up and down to stay within the vein.
Reserves are fairly long lived but take time to de water and produce dry gas. Takes lots of wells because output is fairly low at 50 to 200mcfpd.
Inventories are at the high end of 5 yr average but remember production covers 80% of usage during peak winter conditions. This year that 80% is going to be reduced by the 40% of GOM production that is offline. GOM provides 25% of US ngas. So we are missing 10% of production. As winter weather arrives, production will not be sufficient and drawdowns will likely be bigger earlier than in previous years. Next week should begin to show the drawdowns as freezing temperatures are hitting the Midwest and NE.
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