Large amount of coalbed methane(CBM)is produced in the US

Canada

and Australia.From the development of CBM industry at home and abroad

we can see that 1)the development of CBM industry is a long and rough road;2)favorable policies will help to promote the development of CBM industry;3)rapid development of CBM industry needs the involvement of big oil companies.SINOPEC has more than 8 trillion cubic meters of CBM resources.Analysis of geology and block screening reveal that the Heshun block in the Qinshui basin

the southern margin and the northern part of Ordos Basin and the eastern Yunnanwestern Guizhou region are the key areas for developing CBM in the near term.We suggest Sinopec see CBM as important as conventional oil/gas and adopt positive investment strategies.First

get access to as many as CBM resources both at home and abroad through block leasing

acquisition and cooperation with other companies.Second

treat existing blocks differently.For the Yanchuannan

Heshun and Zhijin blocks which have already found CBM

pilot production and further appraisal should be conducted in order to realize commercial production.For blocks in the northern part and the southern margin of Ordos Basin and in the eastern Yunnanwestern Guizhou region

exploration should be deepened in order to make a breakthrough.For blocks in southern North China Basin and Northwest China

exploratory work should be carried out in order to appraise their CBM potential.Third

intensify investment in R&D and build an integrated team of management

production and scientific research to ensure the fast and healthy development of SINOPEC’s CBM exploration and production.