Research of Coalbed Methane Development Well-Type Optimization Method Based on Unit Technical Cost

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sustainability Article Research of Coalbed Methane Development Well-Type Optimization Method Based on Unit Technical Cost Shiqun Li * Baosheng Zhang School of Business Administration, China University of Petroleum (Beijing), Beijing 102249, China; bshshysh@cup.edu.cn * Correspondence: lishiqun@cnpcint.com Academic Editor: Andrew Kusiak Received: 16 July 2016; Accepted: 19 August 2016; Published: 25 August 2016 Abstract: Coalbed Methane (CBM) is a high-quality unconventional energy resource. The successful utilization of a CBM resource needs to consider technical feasibility economic viability. These factors are also necessary for the improvement of production safety in coal mines, reducing carbon emission, optimizing energy structure. Because of its unique resource characteristics, surface drilling is the prevailing approach all over the world. Directional horizontal wells are generally the two major well-types for CBM. Development well-type is an important factor affecting CBM efficient, as it is a key factor in the process of the economic effective of CBM resource. In this paper, a method based on Unit Technical Cost (UTC) will be constructed the perspective of economic viability, will be used for more simple accurate optimization of CBM. This method is used for practical well-type optimization in two major CBM basins in China, the application results prove that this method is scientifically accurate feasible. Keywords: Unit Technical Cost (UTC); well-type optimization; CBM 1. Introduction 1.1. CBM Resource Development Situation Coalbed Methane (CBM) known as coal seam gas is formed during the process of coal formation. It is stored as gas adsorbed on the surface of coal matrix particles, also as free gas in coal pores, with methane being the main composition [1 3]. With constant progress of gas technologies, this formerly fatal harmful gas has become an important source of unconventional energy resources. The United States achieved the successful commercial of CBM in the 1990s. Annual CBM production was more than 60 billion cubic meters, which once accounted for about 10% of its annual natural gas production. Around 2000, Canada Australia also realized commercial of CBM, adopting CBM technologies the United States, developed unique technology suitable for their own CBM resources [4 9]. China also has rich CBM resources. Thanks to constant research, exploration, testing over the past 30 years, CBM exploration technology systems have advanced considerably. Together with sound supporting industrial policies, the annual CBM production has increased steadily in recent years, commercial of CBM resource in China has been realized [10,11]. During the past 13 years, the annual production of coalbed methane in China has grown just 0.02 billion cubic meters in 2003 to 4.4 billion cubic meters in 2015 (Figure 1) [12]. Sustainability 2016, 8, 843; doi:10.3390/su8090843 www.mdpi.com/journal/sustainability

Sustainability 2016, 8, 843 2 of 12 Figure 1. Annual production of coalbed methane in China 2003 2015, Cubic meters. Figure 1. Annual production of coalbed methane in China 2003 2015, Cubic meters. 1.2. 1.2. Development Development Approach Approach Due Due to to its its unique unique accumulation accumulation occurrence occurrence characteristics, characteristics, CBM CBM is is not not only only different different conventional conventional gas, gas, but but also also different different that that of of unconventional unconventional gas gas (such (such as as shale shale gas, gas, tight tight sstone sstone gas). gas). CBM CBM resource resource includes includes underground underground extraction extraction surface surface drilling. drilling. Underground Underground extraction extraction refers refers to to the the extraction extraction of of gas gas existing existing underground underground coal coal mines, mines, with with the utilization the utilization of additional of additional underground underground drilling. drilling. Surface Surface drilling refers drilling to refers wells that to wells are drilled that are drilled the ground, the with ground, pumping with units pumping other units equipment other equipment being used for being water used drainage for water drainage gas recovery. gas Currently, recovery. surface Currently, drilling surface is a popular drilling is a popular approach for the approach efficient for large the scale efficient large scale of CBM resources all of over CBM the resources world. The all well-type over the world. optimization The well-type studied in optimization the paper is also studied based in on the the paper surface is drilling also based on the approach surface drilling [13,14]. approach [13,14]. 1.3. Well-Type 1.3. Well-Type The type of well is an important factor affecting the efficient of CBM for surface drilling. Specific well types mainly include vertical wells, directional wells (cluster wells), single-lateral The type of well is an important factor affecting the efficient of CBM for surface horizontal wells, multiple-lateral horizontal wells, U-shaped wells, etc. Among them, directional wells drilling. Specific well types mainly include vertical wells, directional wells (cluster wells), multiple-lateral horizontal wells are the most common well-types used in practical single-lateral horizontal wells, multiple-lateral horizontal wells, U-shaped wells, etc. Among them, activities in China [15 23]. directional wells multiple-lateral horizontal wells are the most common well-types used in practical 1.4. Research Content activities in China [15 23]. 1.4. Research Well-type Content optimization is important for the economic effective of CBM resources. In this paper, a set of evaluation criteria based on Unit Technical Cost (UTC) is constructed the perspective Well-type of economic optimization viability is important optimization. for the This economic method is used effective for the simple accurate of CBM resources. optimization In of this CBM paper, a set of well-type. evaluation criteria based on Unit Technical Cost (UTC) is constructed the perspective of economic viability optimization. This method is used for the simple 2. Literature accurate Reviewoptimization of CBM well-type. 2.1. Literature Technical Review Evaluation Method Sunil Ramaswamy (2007) identified 13 main geological parameters which affected the 2.1.Technical Evaluation Method decision-making of CBM drilling, completion, stimulation in North America. The optimum engineering Sunil Ramaswamy practices of (2007) vertical identified horizontal 13 main wells geological for specific parameters combinations which of affected geological the decision-making parameters in principal of CBM CBM drilling, basins along completion, with the stimulation corresponding North methods America. of well The completion optimum engineering stimulation were practices of analyzed. vertical Well-type horizontal optimization wells for specific supporting combinations technical of optimization geological parameters methods were in principal constructed CBM accordingly basins along [24]. with Ianthe Palmer corresponding (2011) analyzed methods CBM of well drilling completion well stimulation were completion methodsanalyzed. all over the Well-type world. Permeability optimization is to be asupporting key parameter technical in determining optimization CBM methods well drilling were constructed completion. accordingly Optimization [24]. ofian drilling Palmer (2011) completion analyzed is usually CBM established drilling based well completion methods all over the world. Permeability is to be a key parameter in determining CBM

Sustainability 2016, 8, 843 3 of 12 on permeability [25]. Zhang Jiawei (2011) analyzed the characteristics of different CBM techniques, their advantages disadvantages, provided specific recommendations for well-type selection for Fanzhuang block, a main CBM resource basin in China [26]. Zhao Qingbo et al. (1999), Pan jienan et al. (1999), He Jing et al. (2001), Xu Dehong et al. (2003), respectively, analyzed the parameters having important impacts on recoverable CBM resources, provided implications for well-type selection [27 30]. Keim (2011) reported on the optimization of CBM completion strategies, selection criteria, production prediction [31]. Cabarello (2013) analyzed drilling completion technique selection methodology for CBM the aspect of geology engineering [32]. 2.2. Analytic Hierarchy Process Fu Li et al. (2011) utilized the Analytic Hierarchy Process (AHP) to establish an analytic hierarchy system structure of CBM well drilling completion approaches [33]. The weighted influence of all geological parameters on well drilling completion approaches are obtained by calculation. The analytic hierarchy process analysis results, combined with field engineering practices CBM well drilling completion approaches under different geological parameters are optimized using this combined approach. 2.3. Economic Evaluation Method Chu Wangtao et al. (2009), based on vertical well horizontal well strategies, used the Discounted Cash Flow (DCF) method to evaluate the economic viability of the virtual plan of full vertical well full multiple-lateral horizontal well for the same well control area, without considering production takeover. The technical economic potential of these two drilling technologies in China s CBM were compared analyzed [34]. Yang Yongguo et al. analyzed economic evaluation methods indices for CBM projects, as these methods indices have been applied for economic evaluation of specific projects under different geological technical conditions [35 49]. In the first method, the important role of key technical parameters in CBM well-type optimization is analyzed, which helps to guide industrial practices. In this method, the economic viability of CBM well-type optimization decision-making is ignored, which is not beneficial for decision-makers to come up with the highest economic benefits under current low prices. In the second method, AHP is utilized by comprehensively considering the impact of the most important factors on CBM ; however, only geological factors engineering technological factors are considered, while economic viability (which has a great impact) is not considered. In addition, this method can affect decision-making negatively due to inaccurate methods for the determination of the weights of all factors. The third method takes into account economic viability, which requires the creation of virtual programs under different well drilling completion approaches. This involves the collection of investment, cost, engineering, other data, then carrying out economic evaluations complying with project economic evaluation requirements. Well drilling completion approaches are conducted based on the evaluation results. However, it is difficult to obtain most technical economic parameters at the early stages of the project, or, in many cases, the obtained parameters are not accurate enough. Ultimately, the method has the problem of poor operability inaccurate evaluation results. Therefore, a faster more accurate method with stronger operability is needed for the optimization of CBM well-type decision-making, thereby enhancing the economic effectiveness of coal-bed methane projects.

Sustainability 2016, 8, 843 4 of 12 3. Method 3.1. Definitions Unit Technical Cost (UTC) is also known as Long Run Marginal Cost (LRMC). It is defined as the ratio of the total cost (Capital Expenditure, CAPEX Operating Expense, OPEX) over the economic life of a project to the total expected outputs the project. It is a comprehensive economic index for investors to make project decisions. The positive point about UTC is that it is independent of the price of the product involved [50]. It gives an indication of what the product costs to develop produce, provides a measure of the economic cushion available when compared to actual estimated product prices. Oil gas projects have the characteristics of long construction operation duration, large investment capital, high risk level, etc. Currently, many large international companies (Shell, BP, etc.) have gradually introduced UTC into the evaluation systems of gas projects. It is applied for the investment decision-making of gas projects (especially unconventional gas projects). CBM is a typical kind of unconventional gas, a CBM well is regarded as an independent evaluation unit. UTC can reflect more comprehensive information for the total cost (CAPEX OPEX) of unit output for the duration of a project. The difference between a UTC a conventional cost index is that it takes into account the time value of total cost (CAPEX OPEX) future output. Therefore, UTC becomes a short-term cost index as long-term through discount, reflects the real cost of unit output throughout the economic life of a project. An evaluation index (EI) can be formed when compared to product price when evaluating whether a project is economically viable. Meanwhile, it is consistent with commonly-used project evaluation index systems (Net Present Value (NPV), Internal Rate of Return (IRR), etc.) based on a discounted cash flow approach. 3.2. Modeling Theoretically, the UTC may be undiscounted /or discounted. However, the discounted UTC is more accurate in accordance with the decision-making practice of the gas industry. As such, the UTC in this paper is assumed to be discounted. The calculation of discounted UTC requires both yearly costs production be discounted to the present value by using the same discount rate used for the calculation of Net Present Value. For a CBM well, UTC is equal to the present value of construction investment operating cost of the CBM well on the discounted value of the project s future production. Specific calculation formulas are shown as follows: UTC = PV I + PV C PV PD (1) wherein, PV I = PV C = PV PD = x t=1 n t=1 n t=1 I t (1 + i) t (2) C t (1 + i) t (3) PD t (1 + i) t (4) where n refers to the sum of the construction operation period of a CBM well; x refers to the construction completion year of the well; i refers to the discount rate set for the well (the minimum acceptable rate of return) it refers to construction investment spending in year; C t refers to operating cost in year t. PDt refers to CBM production of the well in year t. PV I, PV C PV PD are, respectively, discounted values of investment, cost, production within the economic life of the well.

Sustainability 2016, 8, 843 5 of 12 It is assumed that the operation cost is directly related to production. Unit operation cost is UnitC, which will remain the same during the production period. Annual operating cost is equal to UnitC multiplied by annual production. The above Formula (1) can be simplified as follows: UTC = Therefore, the Evaluation Index (EI) is shown as follows: wherein P is the unit sale price of CBM. 3.3. Intrinsic Consistency between EI NPV PV I PV PD + UnitC (5) EI = P UnitC (6) A discounted cash flow method is generally adopted in the gas industry. Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period (PP) are the main evaluation indices. Among them, Net Present Value (NPV) is a widely used index; it is obtained by subtracting the present value of periodic cash outflows the present value of periodic cash inflows. The present value is calculated using the weighted average cost of the capital of the investor, is also referred to as the discount rate or minimum acceptable rate of return [51]. Though the EI index is substantially different NPV by definition, EI NPV are internally consistent with the results of the evaluation of project economic viability. The NPV calculation formula is shown as follows: NPV = ( n P t PD t x t=1 (1 + i) t t=1 I t (1 + i) t + n t=1 ) C t (1 + i) t It is assumed that the product price is kept stable at P within the evaluation period. Both sides of the formula are divided by discounted value of project output synchronously, then: (7) NPV n PD t t=1 (1+i) t = P ( x I t t=1 (1+i) t + n ) C t t=1 (1+i) ( ) t n PD t t=1 (1+i) t = P UTC (8) whereby, EI = n t=1 NPV PD = t (1+i) t NPV PV PD (9) Since the discounted value of project output will always be greater than zero, EI NPV have the same property on the positive negative attributes. The UTC-based evaluation index EI is consistent with the commonly-used evaluation index NPV based on a discounted cash flow method. 3.4. Characteristics The UTC-based evaluation index EI is regarded as the difference between product price the total unit cost of project output. Compared with the conventional evaluation index NPV (which is based on a discounted cash flow method), the UTC-based evaluation index EI is more intuitive, efficient, practical, convenient for the economic evaluation optimization of CBM well-type. UTC is also internally consistent with the evaluation indices NPV IRR under a conventional discounted cash flow method because of its theoretical connotation. In other words, this method arrives at the same conclusion as the conventional economic evaluation method, has the advantage of high intuition, efficiency, operability.

Sustainability 2016, 8, 843 6 of 12 3.5. Decision-Making Process Criteria If the CBM resource base is large enough, it is assumed that both directional wells horizontal wells are equally feasible the perspective of geology engineering. The well-type will be made an economic perspective, the decision-making processes principles are shown as follows: (1) The output profiles under different well-types are anticipated according to resources, geology, engineering, pilot production, analog data, then capital investment operating cost of different well-types. Using this information, the product prices are estimated. (2) The UTCD UTCH are calculated for directional well horizontal wells, respectively. (3) EI values under different well-types are calculated. If EID 0 EIH 0, selected well-types are economic feasible under current technical economic conditions. Then, the well-type with the larger EI value is selected as a recommended well-type for the of CBM resources. If EID < 0 EIH < 0, the primarily selected well-types are not economic feasible under current technical economic conditions. The well-type with higher EI can be recommended as a potential alternative well-type, which means key technological research should be focused on the well-type with lower UTC. If EID EIH < 0, one of the two well types is economic feasible while the other one not; in this regard, the well-type with positive EI should be selected as the optimal one. 4. Application China has rich CBM resources, it is the third largest CBM resource country only to Canada Russia. CBM resources with burial depth less than 2000 m are estimated to be 36.8 trillion cubic meters [52]. The Ordos Qinshui Basins are the two largest basins among China s nine CBM basins, with resources higher than 1 trillion cubic meters. The resource quantity for these two basins is 9.8 trillion cubic meters 3.9 trillion cubic meters, respectively, which accounts for 40% of the total CBM in China. As of 2014, the production of the Qinshui Basin the Ordos Eastern Margin Basin accounted for 94.1% of the total national CBM production in the surface approach in China. Qinshui Basin Ordos Eastern Margin Basin have large-scale commercial, which are built into state-level CBM industry demonstration bases [53]. Surface approaches are widely used in these two basins, directional wells horizontal wells have been tested, utilized, proven to be relatively mature technologies for CBM. The two well types (directional horizontal) have equal technical feasibility, whereas the economic variability of the two well-types their differences can be evaluated by UTC. The method is adopted for evaluating optimizing typical well-type plans for the two basins. 4.1. Qinshui Basin Qinshui Basin is located in the southeastern part of Shanxi Province. The coal-bearing area is 2.4 square kilometers; it is the key area of CBM production capacity in China during the 11th five-year plan the 12th five-year plan periods. The proven reserves were more than 460 billion cubic meters, cumulative annual production capacity was more than four billion cubic meters at the end of 2014. The annual production was about three billion cubic meters in 2014. It is anticipated that the maximum accumulative available reserves of this industry base can reach up to 800 billion cubic meters, an additional cumulative annual production capacity of 14 16 billion cubic meters can be constructed. All of these factors make it a key area of CBM production capacity construction during the 13th five-year plan period. The production profiles of typical directional horizontal wells in Qinshui Basin are shown in Figure 2 [54,55], evaluation parameters of well-types in Qinshui Basin are shown in Table 1.

Sustainability 2016, 8, 843 7 of 12 Figure 2. Comparative production profile of typical directional horizontal wells in Qinshui Basin. Blue Figure bar: 2. directional Comparative well; production Red bar: horizontal profile of well. typical Datadirectional are compiled horizontal open source. wells in Qinshui Basin. Blue bar: directional well; Red bar: horizontal well. Data are compiled open source. Table 1. Evaluation parameters of well-types in Qinshui Basin. Table 1. Evaluation parameters of well-types in Qinshui Basin. Parameter Parameter Unit Unit Value Value Directional well stable daily production rate Cubic meter/day 20,000 Directional well stable daily production rate Cubic meter/day 20,000 Horizontal well stable daily production rate Cubic meter/day 3000 Horizontal well Directional stable well daily investment production rate Ten thous Cubic meter/day Yuan 220 3000 Directional Horizontal well well investment Ten Ten thous thous Yuan Yuan 1200 220 Horizontal well Price investment Yuan/Cubic Ten thous meteryuan 1.00 1200 Basic Price discount rate Yuan/Cubic % meter 10% 1.00 Basic discount rate % 10% 4.2. Ordos Eastern Margin Basin 4.2. Ordos The Ordos Eastern Eastern Margin Margin Basin Basin spans across three provinces namely, Shanxi, Shaanxi, InnerThe Mongolia with Ordos Eastern the Margin coal-bearing Basin spans area being across 2.5three square provinces namely, kilometers. The Ordos Shanxi, Eastern Shaanxi, Margin Basin Inner Mongolia with is another key area the of coal-bearing CBM production area being capacity 2.5 square construction kilometers. in The China Ordos anticipated Eastern Margin for the 12th Basin five-year is another plan key area period. of CBM The proven production reserves capacity are close construction to 150 billion in China cubic meters, anticipated afor cumulative the 12th annual five-year production plan period. capacity The proven of morereserves than 1.5are billion close cubic to 150 meters billion was cubic obtained meters, at thea end cumulative of 2014, annual annual production production capacity of of about more 600 than million 1.5 billion cubic cubic meters meters was obtained was obtained 2014. at the It isend anticipated of 2014, that the an annual final accumulative production of available about 600 reserves million ofcubic this industry meters was baseobtained can reach in up 2014. to It 500 550 is anticipated billion cubic that the meters, final with accumulative a cumulative available production reserves capacity of this of industry 10 11 billion base can cubic reach meters up being to 500 550 anticipated, billion making cubic meters, it a key with area a cumulative of production production capacity capacity construction of 10 11 during billion the cubic 13thmeters five-year being plan anticipated, period. The making production it a key profile area of ofproduction typical directional capacity construction horizontalduring wells inthe the 13th Ordosfive-year Eastern Margin plan period. Basin are The shown production in Figure profile 3, of typical evaluation directional parameters horizontal of well-types wells in the in the Ordos Ordos Eastern Eastern Margin Margin Basin Basin are shown are shown in Table in Figure 2. 3, evaluation parameters of well-types in the Ordos Eastern Margin Basin are shown in Table 2.

Sustainability 2016, 8, 843 8 of 12 Sustainability 2016, 8, 843 8 of 12 Figure 3. Comparative production profile of typical directional horizontal wells in the Ordos Figure Eastern 3. Margin Comparative Basin. Blue production bar: directional profile of well; typical Red directional bar: horizontal horizontal well. Data wells are compiled in the Ordos Eastern open source. Margin Basin. Blue bar: directional well; Red bar: horizontal well. Data are compiled open source. Table 2. Evaluation parameters of well-types in the Ordos Eastern Margin Basin. Table 2. Evaluation parameters of well-types in the Ordos Eastern Margin Basin. Parameter Unit Unit Value Value Directional well well stable daily production rate Cubic Cubic meter/day 2000 2000 Horizontal Horizontal well well stable stable daily daily production rate Cubic Cubic meter/day meter/day 10,000 10,000 Directional well investment Ten thous Yuan 250 Directional well investment Ten thous Yuan 250 Horizontal well investment Ten thous Yuan 1300 Horizontal well Price investment Yuan/Cubic Ten thous meteryuan 1.50 1300 BasicPrice discount rate Yuan/Cubic % meter 10% 1.50 Basic discount rate % 10% Note: Data are compiled open source. Note: Data are compiled open source. 4.3. Evaluation Index Calculation Analysis 4.3. Evaluation Index Calculation Analysis The model data shown above are utilized for calculating EI under different well-types in the The model data shown above are utilized for calculating EI under different well-types in Qinshui Ordos Eastern Margin Basins, respectively. The results are shown in Table 3. the Qinshui Ordos Eastern Margin Basins, respectively. The results are shown in Table 3. Table 3. Well-type optimization evaluation results for the Qinshui Ordos Eastern Margin Basins. Table 3. Well-type optimization evaluation results for the Qinshui Ordos Eastern Margin Basins. Value Parameter Unit Qinshui Basin Ordos Value Eastern Margin Basin Parameter Unit Directional well UTC Yuan/Cubic meter Qinshui 0.810Basin Ordos Eastern 1.192 Margin Basin Directional Horizontal well UTC Yuan/Cubic meter 0.810 0.661 1.192 1.359 Horizontal Directional well well UTC EI Yuan/Cubic meter 0.661 0.190 1.359 0.308 Horizontal well EI Yuan/Cubic meter 0.339 0.141 Directional well EI Yuan/Cubic meter 0.190 0.308 Preference decision Horizontal well Directional well Horizontal well EI Yuan/Cubic meter 0.339 0.141 Note: Data are compiled open source. EI: evaluation index; UTC: Unit Technical Cost. Preference decision Horizontal well Directional well For the Note: Qinshui Data are Basin, compiled the above-mentioned open source. EI: evaluation result index; shows UTC: Unit thattechnical the UTCD Cost. UTCH are greater For the than Qinshui zero, Basin, meaning the that above-mentioned directional evaluation horizontalresult wells are shows economical that the UTCD feasible UTCH under are current greater technical than zero, economic meaning conditions. that directional However, since horizontal the UTCH wells isare smaller economical than UTCD feasible the under EIH is current larger than technical EID, it can economic be concluded conditions. that the economic However, benefits since the of UTCH developing is smaller CBM resources than UTCD by horizontal the EIH well is larger well-types than are EID, better it can than be directional concluded well that the well-type economic at the benefits same price of developing level. CBM resources Regarding by horizontal the Ordos well Eastern well-types Margin are Basin, better the than evaluation directional above well well-type shows that at the the UTCD same price level. UTCH are larger than zero, meaning that directional horizontal wells are economically feasible under Regarding current technical the Ordos Eastern economic Margin conditions. Basin, However, the evaluation since the above UTCH shows is larger that than the UTCD, UTCH are larger than zero, meaning that directional horizontal wells are economically feasible

Sustainability 2016, 8, 843 9 of 12 the EIH is lower than EID, it can be concluded that the economic benefits of developing CBM resources by directional well well-types are better than horizontal well well-types at the same price level. In summary, the well-types for the utilization of CBM resources are different under different resource, technological, economic conditions. The evaluation method based on unit technical cost can be used for conveniently, quickly, accurately choosing the best well-type, thereby providing fast decision-making support for the efficient of CBM resources in China. 5. Discussion Conclusions Reasonable optimization of well-type is an important decision-making issue in the process of effective economic of CBM resources under specific resource, technological, economic conditions. Traditional well-type optimization methods, such as technical evaluation methods AHP are based on geological engineering parameters, the economic considerations are insufficient; the traditional economic evaluation method based on a project plan takes the economic aspects into account, but its operability is not so strong. Based on UTC theory, this paper built a new coalbed methane well-type optimization method, established a detailed calculation model, constructed the decision-making process criteria. This method reflects the geological engineering parameters by production profile, reflects the economic parameters through investment, costs, prices. It can be adopted for optimizing well-type more easily accurately. The method has internal consistency with the conventional evaluation index. It is also more intuitive stronger an operational stpoint. The method is applied for major CBM resource zones in China s Qinshui Basin Ordos Eastern Margin Basin. The optimization results show that the horizontal well type has better economic viability for the Qinshui Basin, while the directional well type has better economic viability for the Ordos Eastern Margin Basin. The conclusion has important guidelines for the economic efficient of CBM resources in these two basins. At the same time, this method may be applied to China s other coalbed methane basins that have not yet achieved large-scale commercial, providing more important implications for efficient. A UTC-based CBM well-type optimization method can help to select optimal well-type, also to evaluate the economic viability of different well-type scenarios. Under current low prices, this feature provides special value for this method. It can also help companies underst the benefits of coal-bed methane wells using different well-types, so as to make rational investment decisions. EI values of different well-types are affected by many factors, such as production profile, price, investment, cost, etc. Therefore, EI values well-type optimization results of different CBM basins are dynamic. Timely dynamic evaluation updates are needed to ensure successful CBM. Acknowledgments: Great thanks are presented to the sponsorship project (13 & ZD159) of National Social Science Fund National Natural Science Fund (71303258 71373285). Author Contributions: All the authors have co-operated for the preparation of this work. Shiqun Li Baosheng Zhang conceived designed the experiments; Shiqun Li performed the experiments analyzed the data. Shiqun Li Baosheng Zhang drafted the main part of the paper. Final review, including final manuscript rectifications, was done by Baosheng Zhang. Conflicts of Interest: The authors declare no conflict of interest. References 1. Ministry of L Resources. National Stard Coal Bed Gas Resources/Reserves Specification (DZT0216); Geological Publishing House: Beijing, China, 2003. (In Chinese) 2. Rogers, R. Coalbed Methane: Principles Practices; Prentice Hall: London, UK, 1994. 3. Rudy, E.R. Coalbed Methane: Principles Practices; Oktibbeha Publishing Co.: Oktibbeha, MS, USA, 2007.

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