Study On The Problems Related To The Management Of Coal Bed Methane Industry In China

China has very rich coal bed methane resources. As an unconventional natural gas, coal bed methane (CBM) has its industry. The development of its industry, both in energy security, environmental protection and in mine safety, is of great significance. First of all, coal bed methane can be used as an important strategic complement of conventional natural gas. Secondly, as an energy for cleaning, whose main component is methane, the utilization of coal-bed methane can also ease the pressure of the environment today. In addition, the development and utilization of coal bed methane resources are also of great significance in avoiding accidents in coal mine.The study is based on the economics theory. This paper is introduces the status quo of China's coal bed methane industry, and analyzes the various social properties in China's coal bed methane and characteristics of the current industry regulations as well as its problems. Besides, this paper selected the models, which are suited to the characteristics of China's coal bed methane industry, from many industrial rules and regulations, and makes further revisions. And then the article puts forward some reformational proposals and programs on specific reforms of regulations in China's coal-bed methane industry and gives some suggestions on the development of coal-bed methane industry, from the successful experience of reform in Western developed countries, through the use of theory with practice and comparative analysis of various methods, from the overall level of China's coal-bed methane industry, targeting different segments of the characteristics of regulations.Specifically speaking, this paper first analyzes the theoretical framework of economics regulation, and makes a comprehensive analysis of a natural monopoly of coal-bed methane industry, and then studies the characteristics and problems of rules and regulations in China's coal bed methane industry. Finally, it gives some suggestions on reform of China's coal bed methane industry and builds a preliminary model of regulation, mainly including three aspects: entering the regulation model, industry regulation model and social model of regulation.By studying, the main conclusions are as followed: First, upstream, midstream and downstream segments of the coal bed methane industry have different social properties, and we should establish corresponding regulations and strategies according to the characteristics of different segments. Second, the reform of China's coal bed methane industry should prevent all enterprises from rushing to coal bed methane industry, and we also should ensure economical benefits in scale and scope. Third, for the price regulations of coal bed methane industry, the model of the Rate of Return could be considered as a means of promoting the volume of capital investment of industry in the upstream segment; in the middle reach of the price regulation, an improved system of RXP-I, namely, a model of limiting ceiling price, could be considered to protect the consumers' interests; in the downstream segment, yardstick competition model (inter-regional comparative model regulation) is appropriate. Fourth, we should go about social regulations in China's coal-bed methane industry from three aspects: security, the environment, quality, and gradually improve relevant legal regulations and work processes.