GUIYANG, China, Oct. 23 (UPI) -- Methane from Asia may be the next energy source.
Large amounts of methane gas stores are reportedly buried inside Asia's coal beds. Some analysts think it could be the next big investment.
It's estimated that trillions of cubic meters of methane are trapped and could be used to meet some of the region's power demand.
China alone holds nearly 30 trillion cubic meters of methane gas, about three times the U.S. amount, a Merrill Lynch representative said.
Until now, logistics and extraction costs have prevented its use, but increasing oil prices could make methane a more attractive option. New technology and government incentives in China and India aimed at reducing carbon emissions are also bringing down costs.
"The basic fact is we're running out of conventional sources of oil and natural gas," said Eric Nuttall, an analyst at Sprott Asset Management of Toronto. "As companies seek out unconventional sources of natural gas, coal-bed methane is the most viable."
Major oil companies including Chevron and ConocoPhillips are seeking exploration rights to methane projects in China. A lot of small, potentially risky companies are also seeking investment.
"It's an educated gamble," Nuttall said. "The question is, will they be able to extract methane at an economical rate?"
