Article: Pricey US Gas Lures Big US Firms To Coalbed Methane.(Brief Article)

Expansion in the mature onshore US upstream is not exactly at the top of most integrated oil companies' agendas. But one play has been grabbing even the big boys' attention recently: coalbed methane gas. Some integrated companies have greatly expanded their US coalbed methane operations in recent months, encouraged by the acute shortage of US gas and the prospect of strong natural gas prices for years to come. Marathon, Texaco, and Phillips have all bought US coalbed methane assets since September. Marathon paid $500 million for Denver-based Pennaco, a company that produces coalbed methane gas in the Powder River Basin of Wyoming and southern Montana (PIW Jan. 1,p6). ...

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