As conventional gas supplies decline, unconventional sources of gas, like coalbed methane (CBM), will become increasingly important in Canada. Canada has over 700 Tcf of CBM gas resource in place, comparable to the U.S. resource. Canada now has the world's largest "dry" coal play and it is estimated (as shown below) that CBM will grow to 2 - 3 Bcf/d in production over the next 10 - 20 years and lead to recovery of up to 75 Tcf of gas. Since 2000, increased drilling activity has led to over 3,000 CBM wells and 150 MMcf/d of CBM production in Canada today, with both estimated to grow substantially in 2005 and beyond. CBM will become an increasingly important part of Canada's gas supply.