Coal Bed Methane in North America Market Analysis, Competitive Landscape and Production Forecasts to 2020 GDGE0078MAR / Published January 2013
Proven Coal Reserves Drive Interest in North American Coal Bed Methane Industry With XX million tons (mmt) of proven coal reserves, North America is the continent with the third largest reserve count in the world. The continent accounted for around XX% of global proven coal reserves as of 2011. Within North America, the US possesses the largest reserves. The US also has the largest count of proven coal reserves globally. As of 2011, the US possessed anthracite/bituminous and sub-bituminous/lignite coal reserves amounting to XXmmt, equivalent to around XX% of global reserves and XX% of continental reserves. The figure below represents the proven coal reserves in North America in 2011 (BP, 2012). Coal Bed Methane Industry, North America, Proven Coal Reserves, 2011 XX Trillion Cubic Feet of Estimated Proven Coal Bed Methane Reserves in the US According to the Energy Information Administration (EIA), the US possessed an estimated XX trillion cubic feet (tcf) of proven Coal Bed Methane (CBM) reserves as of the end of 2010. However, these reserves had depreciated at a rate of XX% over their 2009 values. Proven CBM reserves in the US represent a XX% share of proven natural gas reserves in the US as of the end of 2011. The figure below illustrates the proven CBM reserves of various states in the US. Coal Bed Methane Industry, the US, Distribution of Proven CBM Reserves Among States (%), 2010 Miscellaneous states Alabama Arkansas West Virginia Wyoming Coal Reserves (mmt) Utah Pennsylvania Oklahoma Ohio Source: EIA, 2012a Virginia New Mexico Colorado Kansas Montana Louisiana (Inc. offshore) US Canada Mexico Anthracite and bituminous Sub-bituminous and lignite Source: BP, 2012 Colorado, New Mexico, Wyoming and Virginia account for a combined XX% share of total proven CBM reserves in the US. Of these four states, Colorado has the highest share with XX% of the country s proven CBM reserves, followed by New Mexico with XX%, Wyoming with XX%, and Virginia with XX%. Alabama, Utah, Oklahoma, Kansas, Pennsylvania and West Virginia also possess substantial CBM reserves. Page 2
1 Table of Contents 1 Table of Contents... 4 1.1 List of Tables... 6 1.2 List of Figures... 7 2 Introduction... 8 2.1 Overview... 8 2.2 GlobalData Report Guidance... 9 3 Coal Bed Methane in North America, Overview... 10 3.1 Coal Bed Methane in North America, Overview... 10 3.2 Presence of Proven Coal Reserves Drives Interest in North America s Coal Bed Methane Industry... 10 3.3 The US has Largest Coal Bed Methane Resources in the Region... 11 3.4 CBM Production in North America is Forecast to Reach 2tcf by 2020... 12 3.5 Coal Bed Methane in North America, Key Drivers and Issues... 13 3.5.1 Credentials of Coal Bed Methane as Cleaner Energy Source Provide Fillip to Its Development Activities in North America... 13 3.5.2 Coal Bed Methane Development in the US is a Well Regulated Industry... 13 3.5.3 US and Canada Plan to Develop LNG Export Terminals Using Domestic Unconventional Gas Sources... 14 3.5.4 Rising Environmental Issues are Major Challenges Affecting Coal Bed Methane Development... 15 4 Coal Bed Methane in North America, the US... 16 4.1 Coal Bed Methane in North America, Resource Potential... 16 4.1.1 Coal Bed Methane in North America, Major Coal Bed Methane Basins in the US... 16 4.1.2 New Mexico Offers Highest Well Head Prices of Coal Bed Methane Basin States... 23 4.2 Estimated 17.5 Trillion Cubic Feet of Proven Coal Bed Methane Reserves in the US... 24 4.3 Coal Bed Methane in North America, Coal Bed Methane Development Scenario... 26 4.3.1 Coal Bed Methane Development in Colorado... 26 4.3.2 Coal Bed Methane Development in New Mexico... 27 4.3.3 Coal Bed Methane Development in Wyoming... 28 4.3.4 Coal Bed Methane Development in Alabama... 29 4.3.5 Coal Bed Methane Development in Oklahoma... 30 4.3.6 Coal Bed Methane Development in Utah... 32 4.3.7 Coal Bed Methane Development in Virginia... 34 4.4 Coal Bed Methane in North America, Market Scenario... 35 4.4.1 The Principal Environmental Issue Affecting Coal Bed Methane Development is Water Disposal... 35 4.4.2 Coal Bed Methane to Electricity Plant Planned in Indiana... 35 4.4.3 Coalbed Methane Outreach Program... 36 4.5 Around XXbcf of Coal Bed Methane Production in the US Recorded in 2010... 37 4.5.1 Expected Average Coal Bed Methane Production of 2tcf Until 2020 in the US... 39 5 Coal Bed Methane in North America, Canada... 40 5.1 Coal Bed Methane in North America, Resource Potential... 41 5.1.1 Coal Bed Methane in North America, Major Coal Bed Methane Basins in Canada... 41 5.2 Coal Bed Methane in North America, Coal Bed Methane Development Scenario in Canada... 42 5.2.1 Coal Bed Methane Development in Alberta... 42 5.2.2 Coal Bed Methane Development in British Columbia... 45 5.2.3 Coal Bed Methane Development in Saskatchewan... 47 5.2.4 Coal Bed Methane Development in Nova Scotia... 47 5.3 Coal Bed Methane Production in Canada is Estimated to Exceed 200bcf by 2020... 48 6 Coal Bed Methane in North America, Mexico... 49 6.1 Coal Bed Methane in North America, Mexico, Resource Potential... 49 6.2 Sabinas Sub-Basin is Key Coal Basin in Mexico with Major Potential for Coal Bed Methane Development... 49 6.3 Coal Bed Methane in North America, Mexico, Development Scenario... 50 6.3.1 Coal Bed Methane in North America, Mexico Coal Bed Methane / Coal Mine Methane Regulations... 50 7 Coal Bed Methane in North America, Competitive Landscape... 51 7.1 ConocoPhillips Ranks as Largest Operator of Coal Bed Methane Producing Fields in North America... 52 Page 4
7.2 Energen Resources Corporation... 53 7.3 Devon Energy Corporation... 53 7.4 Anadarko Petroleum Corporation... 53 7.5 Encana Corporation... 54 8 Appendix... 55 8.1 Market Definitions... 55 8.2 Sources... 55 8.3 Abbreviations... 57 8.4 Methodology... 58 8.4.1 Coverage... 58 8.4.2 Secondary Research... 58 8.4.3 Primary Research... 58 8.5 Contact Us... 59 8.6 Disclaimer... 59 Page 5
1.1 List of Tables Table 1: Coal Bed Methane Industry, North America, Planned LNG Liquefaction Projects (mmtpa), 2012-2020... 14 Table 2: Coal Bed Methane Industry, the US, Major CBM Basins Characteristics, 2010... 17 Table 3: Coal Bed Methane Industry, the US, CBM Basins Wellhead Price ($/mcf), 2010... 23 Table 4: Coal Bed Methane Industry, the US, Proven CBM Reserves by States (bcf), 2005-2010... 25 Table 5: Coal Bed Methane Industry, the US, CBM Production in Utah by Counties (bcf), 2008-2012 33 Table 6: Coal Bed Methane Industry, the US, Major Coal Mine Methane Projects... 36 Table 7: Coal Bed Methane Industry, the US, Current and Projected CBM Production (bcf), 2011-2020... 39 Table 8: Coal Bed Methane Industry, Canada, Alberta Plains CBM Characteristics, 2012... 41 Table 9: Coal Bed Methane Industry, Canada, CBM Production in Canada (bcf), 2010-2020... 48 Table 10: Coal Bed Methane Industry, Mexico, Key Characteristics of Sabinas Sub-Basin, 2012... 49 Table 11: Coal Bed Methane Industry, Mexico, Coal Mine Methane Projects, 2012... 50 Page 6
1.2 List of Figures Figure 1: Coal Bed Methane Industry, North America, Proven Coal Reserves, 2011... 10 Figure 2: Coal Bed Methane Industry, North America, Forecasted CBM Production (bcf), 2011-2020.. 12 Figure 3: Coal Bed Methane Industry, the US, Location of CBM Basins, 2012... 16 Figure 4: Coal Bed Methane Industry, the US, Powder River Basin... 18 Figure 5: Coal Bed Methane Industry, the US, Arkoma Basin... 19 Figure 6: Coal Bed Methane Industry, the US, Raton Basin... 20 Figure 7: Coal Bed Methane Industry, the US, Black Warrior Basin... 21 Figure 8: Coal Bed Methane Industry, the US, Uinta-Piceance Basin... 22 Figure 9: Coal Bed Methane Industry, the US, Distribution of Proven CBM Reserves Among States (%), 2010... 24 Figure 10: Coal Bed Methane Industry, the US, CBM Production in Colorado (bcf), 2000-2010... 26 Figure 11: Coal Bed Methane Industry, the US, CBM Production in New Mexico (bcf), 2000-2010... 27 Figure 12: Coal Bed Methane Industry, the US, CBM Production in Wyoming (bcf), 2000-2010... 28 Figure 13: Coal Bed Methane Industry, the US, CBM Production in Alabama (bcf), 2000-2010... 29 Figure 14: Coal Bed Methane Industry, Oklahoma, CBM Completions, 1988-2011... 30 Figure 15: Coal Bed Methane Industry, the US, CBM Production in Oklahoma (bcf), 2005-2010... 31 Figure 16: Coal Bed Methane Industry, the US, Utah's Coal Bed Gas Plays... 32 Figure 17: Coal Bed Methane Industry, the US, CBM Production in Utah (bcf), 2000-2010... 33 Figure 18: Coal Bed Methane Industry, the US, CBM Production in Virginia (bcf), 2005-2010... 34 Figure 19: Coal Bed Methane Industry, the US, CBM Production Contribution by States (%), 2010... 37 Figure 20: Coal Bed Methane Industry, the US, CBM Production (bcf), 2000-2010... 38 Figure 21: Coal Bed Methane Industry, the US, Current and Projected CBM Production (bcf), 2011-2020... 39 Figure 22: Coal Bed Methane Industry, Canada, Alberta Stratigraphic Intervals With Coal Zones and CBM Potential, 2012... 43 Figure 23: Coal Bed Methane Industry, Canada, Coalfields and Coal Bed Methane Potential in British Columbia, 2012... 45 Figure 24: Coal Bed Methane Industry, Canada, Current and Projected CBM Production (bcf), 2010-2020... 48 Figure 25: Coal Bed Methane Industry, North America, CBM Production by Major Operators, 2011... 51 Figure 26: Coal Bed Methane Industry, North America, Onshore Energy Interests of ConocoPhillips in Lower 48 States, 2012... 52 Page 7
2 Introduction 2.1 Overview Coal Bed Methane (CBM) is a kind of methane found in coal beds, which has similar applications to those of natural gas. CBM is believed to be formed during the natural process whereby organic matter is converted into coal. It is usually extracted through a process whereby water is pumped into the deep coal bed, which extracts the methane adsorbed by the coal deposits. Since it has similar applications to those of natural gas, CBM found in the coal beds can be used for domestic, commercial, and industrial purposes, and also for power generation. In addition to methane, other gases that may be found in coal beds include ethane, propane, butane, carbon dioxide and nitrogen. According to the Wyoming Geological Survey (WGS), a cubic foot of methane carries a heating capacity of around XX British thermal units (Btu). CBM is usually found at depths ranging from XXm to XXm, and is compressed into the coal by water pressure. Wells are drilled through the coal seams, and the water pressure is reduced as a result, which releases the gas from the coal. The US is a leading country in terms of the development of CBM resources in North America. In the region, Canada also holds significant CBM resources. In the North American CBM industry, the US is a major market with enormous coal resources and substantial CBM potential. The country is the leading country in North America as well as global markets in terms of CBM exploration activities, investments and production. Canada, on the other hand, is an emerging CBM market. Major CBM activities in the country are concentrated around Alberta state, which possesses major unconventional sources. Mexico has a limited presence in regional CBM markets, and the country will be required to undertake robust investments before any substantial production can be achieved. Page 8
2.2 GlobalData Report Guidance This report opens with an executive summary, which lists the key points of the report. Chapter two provides an introduction to the report. Chapter three analyses the North American CBM market, covering the major growth factors and challenges affecting the development of the CBM market in the region. Chapter four discusses the overall CBM scenario in the US, including reserves, production and major basins with CBM potential. CBM related policies, major companies engaged in CBM exploration and production, and projected CBM production up until 2020 are also dealt with in this chapter. Chapter five covers the overall CBM scenario in Canada, focusing on reserves, production, and targets. The chapter also includes in-depth analysis of major companies engaged in CBM exploration and projected CBM production up until 2020. Chapter six discusses the CBM scenario, CBM reserves and basins in Mexico. The chapter also discusses Coal Mine Methane (CMM) projects undertaken in the country. Chapter seven covers the competitive landscape of the report. It analyzes the major CBM operators in North America. Chapter eight is an appendix to the report. Page 9
4.5 Around XXbcf of Coal Bed Methane Production in the US Recorded in 2010 Gas produced from coal beds forms a key part of energy generation the US. CBM production in the country in 2010 accounts for XX% of total natural gas production. In 2010, total CBM production in the US amounted to XXbcf, the majority of which is produced from New Mexico and Wyoming. New Mexico and Wyoming accounted for a combined XX% share of CBM production in the US in 2010. In 2010, there were more than XX CBM producing fields in the country. Some of the major contributors include Prb Coal Bed (Lance Oil & Gas), Basin Fruitland Coal (Gas) (Burlington Resources), Basin Fruitland Coal (Gas) (Conocophillips), Basin Fruitland Coal (Gas) (Energen Resources), Drunkards Wash (Conocophillips), Basin Fruitland Coal (Gas) (Williams Production), Beaver Creek (Devon Energy), Prb Coal Bed (Pennaco Energy), Basin Fruitland Coal (Gas) (Devon Energy) and Prb Coal Bed (Bill Barrett). New Mexico and Wyoming represent the highest number of CBM producing fields in the US, accounting currently for more than half of the total number of fields in the country. The contributions made by XX CBM producing states to total CBM production in the US in 2010 are illustrated in the figure below. Figure 19: Coal Bed Methane Industry, the US, CBM Production Contribution by States (%), 2010 Others Utah Virginia Alabama Wyoming New Mexico Colorado Source: EIA, 2012b Page 37
5.3 Coal Bed Methane Production in Canada is Estimated to Exceed 200bcf by 2020 CBM production in Canada is currently limited to a few states, and is mostly concentrated around Alberta. In 2010, Alberta produced about XXbcf of unconventional natural gas, including CBM and shale gas. The country is expected to possess substantial potential for future CBM production development. Alberta is currently a primary contributor to the country s CBM industry, and is expected to maintain this leading position until 2020. The table and figure below illustrate CBM production in Canada between 2010 and 2020. Figure 24: Coal Bed Methane Industry, Canada, Current and Projected CBM Production (bcf), 2010-2020 Production (bcf) Source: ERCB, 2011 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Table 9: Coal Bed Methane Industry, Canada, CBM Production in Canada (bcf), 2010-2020 CBM production Source: ERCB, 2011 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 CBM production in Canada is expected to decline between 2010 and 2020. A reason behind this could be Canada s prioritization of the development of its oil sands, which is fetching a higher premium price than natural gas and CBM, and as such is an emerging industry in the country. It will be few more years before a substantial scale of CBM production can be achieved. Between 2010 and 2020, CBM in Canada is expected to register a negative AAGR of XX%. Page 48
8 Appendix 8.1 Market Definitions Production for 2010 and 2011 is considered to be the same until December in each respective year. The CBM production forecasts used have been estimated based on the guidance provided by key companies and Energy Ministries involved in the CBM industry in the US and Canada. By default, the production of a company refers to the total production from the field of which the company acts as an operator. Historic data is taken from oil and gas ministry websites, company websites and oil and gas related news journals. All the capacities given in this report are annual capacities taken on 31st December of every year and have been rounded off to one decimal point. 8.2 Sources AGS (2012). Alberta Coal Occurrences and Potential Coalbed Methane Exploration Areas. Alberta Geological Society. Available from: http://www.ags.gov.ab.ca/energy/cbm/coal_and_cbm_intro.html [Accessed: November 15, 2012] APF Energy (2004). Coalbed Methane Development in the Western Canadian Sedimentary Basin. APF Energy. Available from: http://pttc.mines.edu/cbm/western%20canada/western.pdf ARI (2011). Outlook for CMM in Mexico and Columbia. Advanced Resources International. Available from: http://www.epa.gov/cmop/docs/cmm_conference_oct11/kelafant.pdf BP (2012). BP Statistical Review, 2012. BP Plc. Available from: http://www.bp.com/sectionbodycopy.do?categoryid=7500&contentid=7068481 [Accessed: November 20, 2012] COGCC (2001). Testimony Before the Subcommittee on Energy and Mineral Resources of the Committee on Resources of the House of Representatives. Colorado Oil & Gas Conservation Commission. Available from: http://cogcc.state.co.us/library/houseresources090601.htm [Accessed: November 20, 2012] CSPG (2005). Coal Mine Methane in the Sabinas Sub-Basin, Mexico. Canadian Society of Petroleum Geologists. Available from: http://www.insinc.com/onlinetv/gentzis/softvnetplayer.htm. [Accessed: December 02, 2012] ConocoPhillips (2011). Lower 48. ConocoPhillips. Available from: http://www.conocophillips.com/en/about/worldwide_ops/l48-la/pages/lower48.aspx [Accessed: November 23, 2012] Devon (2008). New ideas unlock unconventional resources. Devon Energy. Available from: http://www.dvn.com/operations/featurestories/pages/unconventional_resources.aspx [Accessed: November 23, 2012] EIA (2007). US Coalbed Methane. US Energy Information Administration. Available from: http://www.eia.gov/oil_gas/rpd/cbmusa1.pdf EIA (2009). Coalbed Methane Fields, Lower 48. US Energy Information Administration. Available from: http://www.eia.gov/pub/oil_gas/natural_gas/analysis_publications/maps/maps.htm [Accessed: November 26, 2012] EIA (2012a). Coal Bed Methane. US Energy Information Administration. Available from: http://www.eia.gov/dnav/ng/ng_enr_coalbed_a_epg0_r51_bcf_a.htm [Accessed: November 29, 2012] EIA (2012b). Coalbed Methane Production. US Energy Information Administration. Available from: http://www.eia.gov/dnav/ng/ng_prod_coalbed_s1_a.htm [Accessed: November 29, 2012] EIA (2012c). Annual Energy Outlook 2012. US Energy Information Administration. Available from: http://www.eia.gov/forecasts/aeo/mt_naturalgas.cfm [Accessed: December 01, 2012] Page 55
Energen (2012). Black Warrior Basin and other areas. Energen Resources. Available from: http://www.energen.com/operations/energen-resources/black-warrior-basin-and-other-areas- 322.html [Accessed: December 01, 2012] EPA (2004). Evaluation of Impacts to Underground Sources of Drinking Water by Hydraulic Fracturing of Coalbed Methane Reservoirs. United States Environmental Protection Agency. Available from: http://www.epa.gov/ogwdw/uic/pdfs/cbmstudy_attach_uic_attach01_sanjuan.pdf EPA (2010). Coalbed Methane Extraction: Detailed Study Report. United States Environmental Protection Agency. Available from: http://water.epa.gov/lawsregs/lawsguidance/cwa/304m/upload/cbm_report_2011.pdf EPA (2012). Coalbed Methane Outreach Program. US Environmental Protection Agency. Available from: http://www.epa.gov/coalbed/index.html [Accessed: November 20, 2012] ERCB (2011). Total Primary Energy Production in Alberta. Energy Resources Conservation Board. Available from: www.ercb.ca/sts/st98/st98-2012_overview.xls [Accessed: November 03, 2012] GMI (2011). Mexico. Global Methane Initiative. Available from: http://www.globalmethane.org/documents/toolsres_coal_overview_ch21.pdf GMI (2012). Coal Mine Methane Projects Database. Global Methane International. Available from: http://www2.ergweb.com/cmm/projects/projectfind.aspx [Accessed: December 03, 2012] GS (2012). Natural Gas in Coal. Government of Saskatchewan. Available from: http://www.ir.gov.sk.ca/default.aspx?dn=5108,3384,2936,documents#sect1d [Accessed: December 10, 2012] GSA (2012). Coalbed Methane Research. Geological Survey of Alabama. Available from: http://www.gsa.state.al.us/gsa/cbm/coalbed%20methane%20research.htm [Accessed: December 01, 2012] IGC (2008). Coalbed methane development in Canada- challenges and opportunities. International Geological Congress. Available from: http://www.cprm.gov.br/33igc/1324175.html [Accessed: December 01, 2012] Coote, J (2011). Coal bed methane companies set to capitalise on increased demand for cleaner energy. Proactive Investors Australia. Available from: http://www.proactiveinvestors.com.au/companies/news/13342/coal-bed-methane-companies-set-tocapitalise-on-increased-demand-for-cleaner-energy-13342.html [Accessed: December 02, 2012] MEMN (2012). Coalbed Methane. Ministry of Energy, Mines and Natural Gas. Available from: http://www.empr.gov.bc.ca/mining/geoscience/coal/coalbc/cbm/pages/default.aspx [Accessed: December 03, 2012] NEB (2009). Liquefied Natural Gas - A Canadian Perspective - Energy Market Assessment. National Energy Board. Available from: http://www.neb-one.gc.ca/clfnsi/rnrgynfmtn/nrgyrprt/ntrlgs/lqfdntrlgscndnprspctv2009/lqfdntrlgscndnprspctv2009-eng.html [Accessed: December 03, 2012] NETL (2002). National Energy Technology Laboratory Strategic Center for Natural Gas. National Energy Technology Laboratory. Available from: http://www.fe.doe.gov/programs/oilgas/publications/coalbed_methane/powderriverbasin2.pdf NRC (2011). Energy. National Resources Canada. Available from: http://www.nrcan.gc.ca/statisticsfacts/energy/895 [Accessed: December 05, 2012] OGS (2009). Arkoma Basin. Oklahoma Geological Survey. Available from: http://www.ogs.ou.edu/coalmaps.php [Accessed: December 05, 2012] TEEIC (2012). Oil and Gas Resources in the United States. Tribal Energy and Environmental Information CLEARINGHOUSE. Available from: http://teeic.anl.gov/er/oilgas/restech/dist/index.cfm [Accessed: December 05, 2012] US DOE (2004). Coal Bed Methane Primer. US Department of Energy. Available from: http://www.allllc.com/publicdownloads/cbmprimerfinal.pdf Page 56
UOG (2012). Utah Coalbed Methane Gas Production - by County (past 5 years). Utah Oil and Gas. Available from: http://oilgas.ogm.utah.gov/statistics/prod_cbm_county.cfm [Accessed: December 11, 2012] 8.3 Abbreviations BTEX: Benzene, Toluene, Ethylbenzene, and Xylene bcf: Billion cubic feet bcm: Billion cubic meters Btu: British thermal units CBM: Coal Bed Methane CMM: Coal Mine Methane CMOP: Coalbed Methane Outreach Program DOI: Department of the Interior EIA: Energy Information Administration ERCB: Energy Resources Conservation Board EA: Environmental Assessment EIS: Environmental Impact Statement EPA: Environmental Protection Agency FOOGLRA: Federal Onshore Oil and Gas Leasing Reform Act mt: Metric tons mmcfd: Million cubic feet per day mmt: Million tons Minosa: Mineral del Norte NEPA: National Environmental Policy Act POD Plan of Development mcf: Thousand cubic feet mcfd: Thousand cubic feet per day tcf: Trillion cubic feet tcm: Trillion cubic meters USGS: United States Geological Survey WCSB: Western Canada Sedimentary Basin WGS: Wyoming Geological Survey Page 57
8.4 Methodology GlobalData s dedicated research and analysis teams consist of experienced professionals with marketing, market research and consulting backgrounds in the energy industry, and advanced statistical expertise. GlobalData adheres to the codes of practice of the Market Research Society (www.mrs.org.uk) and the Strategic and Competitive Intelligence Professionals (www.scip.org). All GlobalData databases are continuously updated and revised. 8.4.1 Coverage The objective of updating GlobalData s coverage is to ensure that it represents the most up-to-date vision of the industry possible. Changes to the industry taxonomy are built on the basis of extensive research of company, association and competitor sources. Company coverage is based on three key factors: market capitalization, revenues and media attention/innovation/market potential. An exhaustive search of 56 member exchanges is conducted and companies are prioritized on the basis of their market capitalization. The estimated revenues of all major companies, including private and governmental, are gathered and used to prioritize coverage. Companies which are making the news, or which are of particular interest due to their innovative approach, are prioritized. GlobalData aims to cover all major news events and deals in the energy industry, updated on a daily basis. The coverage is further streamlined and strengthened with additional inputs from GlobalData s expert panel (see below). 8.4.2 Secondary Research The research process begins with exhaustive secondary research on internal and external sources being carried out to source qualitative and quantitative information relating to each market. The secondary research sources that are typically referred to include, but are not limited to: Company websites, annual reports, financial reports, broker reports, investor presentations and SEC filings. Industry trade journals and other literature. Internal and external proprietary databases. National government documents, statistical databases and market reports. News articles, press releases and web-casts specific to the companies operating in the market. 8.4.3 Primary Research GlobalData conducts hundreds of primary interviews each year with industry participants and commentators in order to validate its data and analysis. A typical research interview fulfills the following functions: It provides first-hand information on the market size, market trends, growth trends, competitive landscape, and future outlook. It helps in validating and strengthening the secondary research findings. It further develops the analysis team s expertise and market understanding. Page 58
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