An overview of coalbed methane (CBM) reservoir characteristics, its unique production mechanisms, and the influence of geomechanical processes on these production mechanisms are discussed from a reservoir engineering point of view. Models have been developed to predict changes in cleat porosity and permeability with in situ conditions (stress, pressure, gas sorption, and temperature). Explicit-sequential coupling simulations are conducted for conventional CBM depletion production. The study shows that during production, coal matrix shrinkage due to methane desorption results in an increase of permeability within coal seams in most regions close to the producer even though the mean effective stresses increase. The predicted production rate and cumulative production from explicit-sequential coupling simulations are higher than that from conventional simulations. The developed models also allow coalbed permeability anisotropy to be considered.