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The oil shale market size is estimated to grow by USD 2.35 billion at a CAGR of 14.76% between 2023 and 2028. The oil shale industry has experienced significant growth in recent years due to increasing demand for oil on a global scale. This trend is driven by various factors, including the rise in energy consumption and the fluctuating cost of traditional fuel sources. Oil shale is an unconventional source of oil that is extracted through a process called retorting. It is a versatile resource, with applications extending beyond the energy sector to industries such as chemicals and construction. The potential benefits of oil shale are vast, but its extraction and use come with environmental concerns and economic challenges. As the industry continues to evolve, it is crucial to strike a balance between meeting energy demands and mitigating the associated risks.
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Oil shale is a nonrenewable energy source that contains significant amounts of hydrocarbons, primarily in the form of kerogen. This resource is different from conventional oil and natural gas deposits, as it requires a more complex extraction process. ThE market has been gaining attention due to the increasing cost of fuel and the need for alternative sources of energy. Oil shale exploration involves the extraction of oil shale ore, its preparation, and the subsequent retorting process to release the shale oil. The extracted oil is then refined into various petroleum products such as diesel, heavy oil, gases, propane, and butane. The production costs of oil shale are relatively high due to the carbon content and environmental impact of the process. Environmental issues, including disturbance of ecosystems, greenhouse gas emissions, and global warming, are major concerns associated with oil shale production. However, research and development efforts are underway to reduce the environmental impact and improve the production efficiency of oil shale. Logistics and waste management are also crucial aspects of the market, as the extraction and refining processes generate large volumes of waste material. Specialty services, including ore preparation and shale oil refining, play a significant role in optimizing the production process and reducing costs. Overall, the market is expected to grow in the long run, despite the challenges associated with its production and environmental impact. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Growth in use of oil shale across various industries is notably driving market growth. Oil shale, a fine-grained sedimentary rock rich in organic materials, has been utilized for various industrial applications since its initial mining for minerals in the 17th century. The energy potential of oil shale was recognized in the late 19th century, leading to its exploitation as a low-grade fuel for power generation. The Fushun process, Kiviter process, Para Ho process, and Galoter retort are common methods used for extracting oil from oil shale. Companies like General Synfuels International, Central Pacific Minerals, BP, Baraka Energy Resources, Ambre Energy, and others have been active participants in the oil shale industry. Oil shale is primarily used as a fuel in thermal power plants, where it is burned to generate heat and produce steam to drive turbines, producing electricity.
Additionally, oil shale is a potential source of synthetic crude oil production, increasing domestic oil output in countries reliant on imports. Oil shale reserves are abundant in various parts of the world, including the Green River formation in the United States. Exploration activity in this sector is ongoing, with countries such as OECD and Non-OECD members investing in oil shale for its potential contribution to fossil fuels, LNG production, diesel fuel, LPG, ammonia, sulfur, and other shale products. The oil shale industry also faces competition from other energy sources, including nuclear power, biofuels, and traditional fossil fuels. Exxon Mobil Corporation and Chevron Corporation are notable industry players investing in oil shale technology, such as Petrosix, to enhance its commercial viability. Thus, such factors are driving the growth of the market during the forecast period.
Rise in adoption of green hydraulic fracturing methods is the key trend in the market. The Oil Shale industry explores various processes to extract shale oil in an eco-friendly manner, moving beyond the conventional hydraulic fracturing method. Some of these innovative techniques include the Fushun process, Kiviter process, Para Ho process, and Petrosix technology. These methods employ heat and solvent to extract shale oil without the use of water. Major oil shale companies like General Synfuels International, Central Pacific Minerals, BP, Baraka Energy Resources, Ambre Energy, and others are investing in these advanced technologies.
Furthermore, these shale products can be used as fuel for electricity generation, cement production, and chemical manufacturing. Exploration activity in significant oil shale formations such as the Green River formation is increasing. The OECD and Non-OECD countries are participating in this growth, with companies like Exxon Mobil Corporation and Chevron Corporation leading the charge. The Oil Shale industry is also focusing on the production of LPG, Ammonia, Sulfur, and even LNG. With the increasing demand for cleaner fuels, these shale products can contribute significantly to reducing the reliance on fossil fuels, nuclear power, and biofuels. The proven reserves of oil shale are vast, making it a promising alternative energy source. These companies are committed to reducing the environmental impact of oil shale production while maximizing efficiency and productivity. Thus, such trends will shape the growth of the market during the forecast period.
The environmental impacts of shale oil extraction is the major challenge that affects the growth of the market. The market encompasses various processes, including the Fushun, Kiviter, Para Ho, and Galoter retort methods, as well as Petrosix technology. These techniques are employed to extract fuel, electricity, cement, chemical, and other shale products from oil shale formations. Companies such as General Synfuels International, Central Pacific Minerals, BP, Baraka Energy Resources, Ambre Energy, and others participate in this industry. Oil shale exploration activity is prevalent in the Green River formation and other significant formations worldwide. However, the environmental impact of oil shale production is a significant concern. Surface mining of oil shale formations, like open-pit mining, results in land use changes and waste management challenges.
Additionally, combustion and thermal processing generate waste and harmful atmospheric emissions, including carbon dioxide, a major greenhouse gas. In situ conversion processes and carbon capture and storage technologies may offer potential solutions to mitigate some of these issues. Nevertheless, groundwater pollution and other environmental concerns remain a challenge. The market caters to various applications, including diesel fuel, liquefied petroleum gas (LPG), ammonia, sulfur, and liquefied natural gas (LNG) production. The market's growth is influenced by factors such as the OECD and Non-OECD demand for fossil fuels, nuclear power, and biofuels, as well as the availability of proved reserves from companies like Exxon Mobil Corporation and Chevron Corporation. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
BP Plc - The company offers shale oil and gas, through its US onshore oil and gas business.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth of the Electricity segment will be significant during the forecast period. Oil shale, a fine-grained sedimentary rock rich in hydrocarbons, has been utilized for various industrial applications since the 17th century. The hydrocarbons contained in oil shale, including petroleum and natural gas, have been extracted and processed into fuels such as gasoline, kerosene, diesel, propane, and butane. While oil shale has traditionally been used as a nonrenewable energy source, alternative energy sources are gaining popularity due to concerns over the cost of fuel and environmental impact.
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The Electricity segment was valued at USD 706.10 billion in 2018. Oil shale exploration and production involve several processes, including ore preparation, oil shale retorting, shale oil refining, and specialty services such as logistics and waste management. Two primary technologies are used for oil shale processing: in-situ and ex-situ. In-situ technology involves heating the oil shale in place to release the hydrocarbons, while ex-situ technology involves mining and transporting the oil shale to a processing facility for retorting. Despite the potential benefits of oil shale as a fuel source, there are environmental concerns associated with its production. The carbon content of oil shale is higher than that of conventional energy sources, leading to increased greenhouse gas emissions and contributing to global warming. Additionally, oil shale production can cause significant disturbance to the land and water resources. To mitigate these environmental concerns, research and development efforts are focused on improving the production process and reducing the carbon footprint of oil shale. Technological advancements in insitu technology, underground heating, and shale oil refining are aimed at reducing the environmental impact of oil shale production while maintaining cost-effectiveness in the long run.
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North America is estimated to contribute 48% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The market encompasses the production and utilization of hydrocarbons, primarily in the form of shale oil and shale gas, from nonrenewable energy sources. This sector is a significant contributor to the global energy landscape, providing alternatives to conventional energy sources such as petroleum and natural gas. However, the high carbon content and environmental issues associated with oil shale production have become a concern in the long run. The cost of fuel derived from oil shale is often higher than that of conventional energy sources due to the complex process involved in its extraction. Oil shale exploration, ore preparation, oil shale retorting, shale oil refining, and specialty services are some of the key processes in the oil shale industry. Geography plays a crucial role in the production of shale oil, with significant deposits found in various parts of the world, including the United States, Russia, and China. Despite the environmental impact and production costs, research and development efforts continue to explore more efficient and less carbon-intensive methods of oil shale production. In-situ technology, which involves heating the shale in place to release the hydrocarbons, and ex-situ technology, which involves extracting the shale and heating it above ground, are two promising approaches. Logistics and waste management are also critical aspects of the oil shale industry, with the need for specialized services to transport and process the large volumes of ore and by-products. The market includes the production of various hydrocarbon products, such as gasoline, kerosene, diesel, heavy oil, gases, propane, and butane. The environmental impact and carbon footprint of oil shale production are significant concerns, with potential disturbance to ecosystems and contribution to global warming and greenhouse gas emissions. As such, ongoing research and development efforts aim to minimize these impacts and make oil shale a more sustainable and economically viable energy source.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
Digital Oilfield Market: Digital Oilfield Market Analysis North America, Middle East and Africa, Europe, APAC, South America - US, Canada, Saudi Arabia, China, Russia - Size and Forecast
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Oil shale is a type of nonrenewable energy source that contains significant amounts of hydrocarbons, primarily in the form of kerogen. This resource is distinct from shale oil, which is extracted from shale formations through various processes. The market is driven by the high demand for hydrocarbons, particularly petroleum and natural gas, and the need to reduce the reliance on conventional energy sources in the long run. Despite the potential benefits, oil shale production faces challenges such as high production costs and environmental concerns. The carbon content of oil shale is higher than that of conventional oil and gas, leading to increased greenhouse gas emissions during the production process. This contributes to global warming and environmental impact, which can disturb local ecosystems and communities.
FurthermoreTo mitigate these issues, research and development in oil shale exploration, ore preparation, oil shale retorting, shale oil refining, specialty services, logistics, waste management, and insitu technology is ongoing. Geographically, the market is spread across various regions, including North America, Europe, Asia Pacific, and South America. The process of oil shale production includes several stages, such as exploration, ore preparation, retorting, refining, and conversion of shale oil into products like gasoline, kerosene, diesel, heavy oil, gases, propane, and butane. The market for oil shale is expected to grow in the future as technological advancements and regulatory frameworks address the environmental concerns associated with its production.
Market Scope |
|
Report Coverage |
Details |
Page number |
139 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 14.76% |
Market growth 2024-2028 |
USD 2.35 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
12.55 |
Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
Performing market contribution |
North America at 48% |
Key countries |
US, China, Russia, Canada, and India |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
BP Plc, Chevron Corp., Eesti Energia AS, EQT Corp, Independent Energy Partners Inc., Japan Petroleum Exploration Co. Ltd., Oil and Natural Gas Corp. Ltd., and Shell plc |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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