CBM in Indonesia? So why we are not trying for this?

While i am doing my final year project's report, and people demands who has asked me to write down about CBM, here i would like to write about this such of subject. Coal bed methane (CBM), one of the example from unconventional hydrocarbons which is started to take a role in energy sustainability in this world.

This figures show about the production process of CBM.


In the US, coalbed methane (CBM) production currently stands at 3.5 Bcfd, about 7% of national gas production. New emerging coal basins (Uinta, Raton, Powder River) have been brought on line while mature areas (San Juan, Warrior) have maintained production.

Over 15 Tcf of CBM reserves have been booked to date, requiring more than $4 billion of capital investment ($0.30/Mcf). CBM E&P is now being conducted outside the US in China, Australia, Poland, and several other countries. As coal producing country, Indonesia CBM resource can simply be identified but quality and deliverability have not been tested. It may have considerable potential as a new gas resource.

As a new alternative energy resources a sequential challenges will require serious, well planned, long-term efforts to ensure a success of CBM development. This campaign is designed for those looking for alternative energy business opportunity in Indonesia, exploration managers and technical experts to provide an early understanding of coalbed methane geology, production technology, regulatory requirement and potential market and economics.

Why Coal bed is unique?

Coal is a gas reservoir that responses predictably to a specific set of interactive physical properties (as other gas reservoirs). Coal is a self-sourcing reservoir, thereby fulfilling the requirement of Source rock, Reservoir rock and Trap.

Coalbeds are an excellent storehouse for natural gas. They can hold two to three times as much gas as a conventional sandstones reservoir at the same depth.

Challenge is locating areas of adequate permeability (several md or more ) in otherwise tight coal seams to produce this resource.
However, in general there is agreement that the world’s supply of conventional crude oil will peak between 2020 and 2030. Most experts do not consider he contribution of unconventional oil and gas of the kind discussed in this lecture, because it seems too speculative. However, it is reasonable to state that any assumption related to decline in oil production will result in increase in oil price is necessarily not correct as oil supply from conventional sources will be replaced by oil production from unconventional resources. This obervation implies that global peak oil production will probably be not achieved probably for another 50 years.

Due to small dimensions of the micropores, a large internal surface area exists within the coal matrix. When a methane molecule comes into contact with an internal surface, two storage mechanisms are possible. The first mechanism of entrapment occurs when the gas molecule penetrates the surface and resides within the molecular lattice of the coal. This is an absorption process. the second mechanism occurs when the gas molecule adheres to the surface. This is an adsorption process. Both storage mechanisms are theorized to occur in coal.

The adsorption process can be classified by the forces which cause the gas molecule to adhere to the surface. If these forces are chemical in nature, such as strong chemical bonding, then the process is chemisorption process. If, however, the forces are physical, such as electrostaic forces or Van der Waal’s forces, the process is a physical adsorption process. The major portion of the gas stored in coal exists as a physically adsorbed, molecular monolayer.

Theoretically, the physical adsorption process is reversible. In coal, hwoever, a small degree of absorption and chemisorption occurs along with physical adsorption. Consequently, a hysteresis effect is often observed between experimentally determined adsorption and desorption isotherms.

So why CBM is Potentially Important to Indonesia?

CBM is Completely new undeveloped natural gas resources (but also untested)
Large resource potential given Indonesia’s sizeable coal base Location onshore may be more favorable for market compared with LNG of Eastern Indonesia. It is potential for advantageous “Global Warming” credits should market in tradable emission options develop

Indonesia, for this ESDM has a target to explore this mentioning area.
Formations: Eocene Tanjung
Oligo-Miocene Talang Akar
Mio-Pliocene Muara Enim
Other equivalents

Major Basins: S & C Sumatra
S Kalimantan (Barito)
E Kalimantan (Kutei, Berau, Tarakan
Plus several smaller basins.


Why we are trying to use CBM as a new alternative energy?
1. Oil & Gas Prices Trend
2. Horizontal / Radial drilling technology courses CBM exploitation cheaper and more certain
3. EOR Technology can be used to exploit CBM
(Nitrogen Injection can increase Methane recovery 50 %)
4. Processing Technology allows “Insitu Gasification”
5. Cryogenic Method (LNG) in gas transportation will solve
high cost in high compression of CBM as a consequence of Low Producing Pressure

In Indonesia itself, there are several companies which are starting to develop this kind of energy. Pertamina, Medco E&P, Vico Indonesia, Ephindo, and etc. have been starting to do this development project of CBM.

So why we are not trying this? to be develop in Indonesia :)

Source : Mr. Kartono Sani and Mr. Turgay Ertekin

Fuelling a thirsty economy

The exploration and production (EP) segment of the petroleum business has been much in the news recently. There was the tussle between Cairn and ONGC over the sharing of the fiscal burden: the CAG has reportedly criticised the production-sharing contract that defines the split of the " profit oil" between the contractor and the government. They claim it encourages the contractor to 'gold plate' their costs. A former upstream regulator is under the CBI scanner for contracts awarded without proper due process. It has been reported that the ministry of home affairs raised questions about Reliance Industries' recent sale of 30% of their EP business to British Petroleum. Whatever might be the facts of the case, i am concerned nonetheless at the possible negative impact of these disparate messages on investor interest.

EP is an inherently risky activity. It involves three interlocking uncertainties - the uncertainty that a given geologic structure contains hydrocarbons, the uncertainty that the hydrocarbons can be located and the uncertainty that once located, the hydrocarbons can be produced on a commercial basis. The gestation period between the search for hydrocarbons and first production (assuming, of course, exploration is a success) can be as long as a decade. It is because of such exposure that investors look for contract structures that balance fairly the risks ex ante discovery (which are borne entirely by the contractor) with the rewards ex post commercial production. They also look for an operating environment that assures contract sanctity. The "production sharing" framework is one such structure. It is an industry template and widely adopted because it not only achieves this balance but it also allows for a formula that gives the government (as the owner of the resource) increasing and disproportionately higher returns.

India has 26 sedimentary basins which, according to ONGC/OIL, contain approximately 35 billion tonnes of oil and oil equivalent of gas (OE). This is less than 1% of the world's resources but it establishes that our geology contains hydrocarbons. The challenge is to locate them. This is a challenge that has become increasingly difficult to overcome. The reason is the end of the era of easy oil. The Mumbai High field, for instance, which was discovered in 1975, had well-defined structures and was in shallow waters. The more recent KG D6 gas find is in water depths exceeding 2,000 feet and in complex geology.Future discoveries will most likely be in terrain comparable to D6. They will not be easy to locate.

A compounding challenge is the consequential hike in costs and technical complexity. ONGC was able to bring a barrel of oil from Mumbai High into production at perhaps no more than $2-$3. Reliance, on the other hand, will have incurred a significant multiple of that number to get its D6 gas to flow. Costs have risen for many reasons but the surge in the price of essential inputs like drilling rigs, steel and cement is perhaps the most dominant. The capital cost index for setting up production facilities in 2000 was 100. It is now 220. The price of oil/gas has also, of course, risen, and internationally most companies have been able to more than offset these cost pressures and generate profits. But in India that has not always been the case. ONGC, for instance, is compelled to sell its crude oil to public sector refiners at a discount and the price of D6 gas has been administratively set at $4.20/million metric British thermal units which is less than half the LNG import price into India. The upshot is that whilst India does have hydrocarbons, it has to overcome significant geologic, technical and commercial obstacles to harness them.

The experience of other countries worldwide suggests that these are not insuperable obstacles. Most countries other than those in the Middle East are facing a similar challenge. For them too, the era of easy oil has ended. But the data suggests they are making good progress in meeting this challenge. The average size of new discoveries worldwide is increasing, and last year 60% of the discoveries were of giant fields containing reserves in excess of 500 million barrels/OE. Some countries have been particularly successful. The standout example is Brazil. It added 22 billion barrels/OE to its reserve base in 2010. But others like the US, Australia, Israel and Mozambique have also made notable discoveries. The common thread running through all of these successes is capital, operational excellence and technology. The latter has been particularly crucial. The application of innovative techniques like digital oilfields, horizontal wells and hydraulic fracturing has made all the difference.

India imports more than 80% of its crude oil. With prices expected to stay in triple digits, this translates into a massive existing and emergent financial burden. The government recognises this reality and its annual NELP licensing round is testament to its determination to accelerate EP. However, to secure the required risk capital, operating best practice and technology, the government may now have to do more. It may have to proactively reaffirm to potential investors and partners its commitment to contract sanctity.

The writer is chairman of the Shell Group in India. Views expressed are personal.

What does a job in Petroleum Engineering Entail?

Engineers and managers operating in the petroleum industry usually enjoy secure job opportunities and appealing salaries. Competition to obtain these positions is intense, and that’s why it’s important for individuals to complete an education that adequately prepares them to get into this market. With international demand for petroleum products high, this market is likely to continue to require qualified job candidates.

Schooling and Early Career

People who seek employment in the oil and gas market should acquire a minimum of a bachelor’s degree in petroleum geology. Students who have chosen to become petroleum engineers may find a degree program in petroleum engineering. Other colleges simply offer engineering degrees with a few petroleum engineering courses being offered. Degrees in similar fields like geology, mining, mechanical engineering, geophysics, and civil engineering along with coursework relevant to petroleum engineering should be sufficient to prepare the student for an basic level position with an oil and gas corporation. In the event the student would like to instruct or perform research, they’ll likely have to secure a post-graduate level degree.

In their earliest employment, a novice petroleum engineer may work as an assistant to an expert engineer. It’s now that vital on-the-job training occurs, preparing the new employee for the needs of the oil and gas industry. Needless to say, first the new engineer must obtain a job. This is often done with the assistance of a college career-development center or maybe recruiters from potential employers will also visit campus. Prospective engineers should subscribe to professional journals to keep apprised of current job openings.

The academic track for individuals searching for careers as managers in the petroleum market is much the same; however, they’ll need to diversify their education. Training in engineering, mining, and geology will prove vital to understanding their selected industry, but they must coordinate those classes with appropriate business classes. Many managers in the petroleum sector acquire an MBA prior to looking for employment. Again, college placement offices can play a crucial role in assisting the individual to land the all-important first job.

What To Anticipate From An Oil and Gas Profession

Working situations in the oil and gas industry can vary extensively. Engineers and managers should expect to find job opportunities in a range of international locations around the world. They might be required to travel substantially in support of their career. It’s not unusual for petroleum industry engineers and managers to work unpredictable schedules, because most petroleum businesses run on a 24 hour a day, 7 days a week basis. They may work in a business office setting or on an offshore rig.

A oil engineer’s main undertaking is to find ways to get oil and natural gas out from the ground and into appropriate storage tanks. This may involve designing extraction systems and supervising the task of actually extracting the natural resource. The petroleum engineer could have primary responsibility for deciding where and how to drill. They may test samples, using the test results to figure out what equipment and strategies should be used to extract the resources from the ground.

The job of the business manager in the petroleum sector shares many similarities with managers in other fields. They may negotiate contracts, set up financing and agreements, and usually help their company to succeed in their business. Tenacity and persistence are required in equal amounts. The oil and gas industry is a primarily competitive one, and managers in this field must be able to persist even against problematic odds.

In spite of the competitive nature of the field, many people select the oil and gas industry because of the challenges and security it represents. Acquiring natural resources properly and properly is the main objective of individuals in the petroleum industry and will continue being a crucial service, in all its various forms, for a long time to come.

The Average Salary Of A Petroleum Engineer And Factors That Affect It

As the cost of petroleum rises, the cost of every commodity gets higher also. It is because petroleum plays a huge role in everybody's life. It's traditionally used in daily activities by the most complex enterprises down to basic household tasks. It is used for cooking, making pharaceutical medications, cosmetics and beauty products, fueling vehicles and factories, and much more. It's the source of power for almost all market sectors.

This is the power of petroleum, and petroleum engineers earn substantial salaries for their hard work and determination in delivering energy for the world. What kind of compensation do petroleum engineers receive? And exactly what does it take to become one?

The Distinctions And Fluctuations Of A Petroleum Engineer's Salary

Similar to how petroleum prices fluctuate on account of economic components, petroleum engineers' income varies according to various variables also. Work expertise and field of expertise are major factors to consider when examining a petroleum engineer's income level. A newly graduated petroleum engineer could begin a career making $65,000 or higher. As their years of training increase, their salary increases also. An engineer having a master's degree in petroleum geology can earn $76,000 to $144,000. While a bachelor's degree would be around $60,000 to $120,000.

Work experience can also increase your salary as well. Someone who's just beginning might earn around $65,000 whereas people with 1 - 4 years of work knowledge could make $72,000 - $94,000. Individuals with 5 - 9 years of experience generally make $80,000 - $124,000. And engineers with 10 - 20 years of practical experience should expect to earn in excess of $185,000.

Varying Incomes For Various Types Of Petroleum Engineering

The average salary of petroleum engineers ranging from $60,000 to as much as $300,000 is because the type of their work defines their value.

The Bureau of Labor Statistics of the United States Department of Labor describes a petroleum engineer as one who designs methods and strategies for oil and gas extraction from deposits below the earth. They work with geologists and other specialists in order to understand the geological formation of rocks and properties of oil reservoirs. Upon establishing the understanding of rock formation and reservoir location, petroleum engineers will determine the proper drilling method to conduct actual extraction of oil and gas. Once a method is settled upon, they are responsible for monitoring the production operations of the oil and gas extraction.

Since the extraction of oil and gas counters the earth?s gravitational pull, engineers devise mechanisms that enhance the extraction efficiency, such as the injecting water, chemicals, gas or steam into the oil reservoir to increase pressure and oil flow. Additionally they design modern mechanisms that are governed by advanced computer technology and perform research studies that assist in making oil and gas extraction more effective.

Doing work in The Field Or In the Office Affects Income Also

As you can tell, the job of a petroleum engineer is extremely technical yet also requires manual and concerted insight, which is one reason petroleum engineers make substantial earnings. But pay is not equal for every petroleum engineer title holder. Engineers who work in the field get higher salaries than those who work in an office. Once they work in the field, petroleum engineers need not just the technological expertise in oil extraction, but must also have employee management techniques in order to manage contract and development personnel.

If you have solid math and management techniques and would like to get into a high paying and thrilling sector, consider being a petroleum engineer.

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