Modelling the impact of coal seam methane on the Mongolian economy

Abstract

Energy independence is one of the most important issues for almost every country and the world. Mongolia strives to have various types of energy sources and reduce energy dependence. Energy dependence always influences economic dependence of any country. Utilising its own country’s resources is optimal to reduce energy dependence. In recent years, the Mongolian Government has been encouraging unconventional oil and gas exploration and foreign investment and implementing supporting policies, such as coal bed (seam) methane. As a result of these activities, unconventional oil and gas investment and exploration have been intensified in the last few years in Mongolia, especially during pandemics. There are 32 oil and gas blocks in Mongolia and coal bed methane exploration and foreign investments have been invested in eight blocks. In 2022, some foreign investment companies are going to introduce proven reserves of coal bed methane to the Mongolian Government and Parliament. Therefore, we have to model the positive and negative impacts of coal bed methane on the Mongolian economy and find methods to increase the positive sides. Unfortunately, there is no experience in any situation for unconventional oil and gas exploration, extraction, and field development. Because of it, we have cooperated with Australian scientists and experts and completed some studies for making a model of the impact of coal seam methane on the Mongolian economy. For today’s condition, the Mongolian Government or Mongolian private companies can’t process coal bed methane activities because of lack of capital expenses and experience. To raise the positive impacts of coal bed methane, foreign investment is of course very important. There are some main purposes to model the impact of coal seam methane on the Mongolian economy.