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The shale gas market size is estimated to increase by USD 20.36 billion and grow at a CAGR of 5.31% between 2023 and 2028. Market growth is linked to the numerous benefits, including its abundance and cost-effectiveness, driving increased consumption of natural gas. Additionally, ongoing technological advancements in drilling techniques enhance the efficiency and accessibility of the reserves. However, challenges persist, such as the shortage of water for fracking operations, which can hinder production activities. Moreover, technical complexities associated with extraction present hurdles to market expansion, necessitating innovative solutions and expertise. Furthermore, the environmental impact of fracking, including concerns about water contamination and seismic activity, poses significant challenges to the industry's sustainability and public acceptance. Addressing these challenges requires collaborative efforts among stakeholders to develop sustainable practices, mitigate environmental risks, and ensure responsible production for continued market growth.
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The horizontal fracking segment is estimated to witness significant growth during the forecast period. Shale deposits, rich in methane and other hydrocarbon gases, have emerged as a significant source in the energy market. The extraction process involves production techniques such as horizontal drilling and hydraulic fracturing, which increase the contact area between the wellbore and the shale rock. This results in the efficient extraction of methane and higher production rates compared to conventional vertical drilling.
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The horizontal fracking segment was the largest segment and was valued at USD 32.26 billion in 2018. The increased gas recovery and production rates make it economically viable, contributing to its success in domestic heating, cooking, electricity generation, and industrial applications. Horizontal drilling allows operators to access and extract gas from a larger portion of the shale formation, maximizing the recovery of unconventional hydrocarbons from extensive and low-permeability rock formations. The industry's success is further supported by the development of green hydrogen and piped natural gas infrastructure, reducing greenhouse gas emissions and promoting carbon neutral energy sources. Despite the economic benefits, the market faces challenges such as bankruptcies, mild winters, lockdown measures, and economic downturns. Crude oil prices and hydrocarbon demand also impact the investment timescales for production. The industry's future relies on the continued development of advanced extraction processes, such as horizontal and rotary fracking, and the integration with other energy sources, including nuclear power, biofuels, and export facilities.
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APAC is estimated to contribute 34% 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 in the APAC region is projected to reach trillions of cubic feet during the forecast period, driven by escalating petroleum demand and the need to address burning issues related to energy security. Major drivers of this growth include the presence of substantial resources in countries such as China, India, Australia, and Indonesia. Exploration activities in these shale formations offer the potential for significant production, addressing the region's increasing energy requirements due to population growth and economic development. The rising price of crude oil has led to increased investments in the oil and gas E&P sector, with members seeking high and stable profitability. Drilling technology advancements, such as hydraulic fracturing, have facilitated the extraction of methane gas from shale formations. However, concerns over water contamination, incorrect disposal of chemically treated water, and the potential for earthquakes and unstable reservoirs remain pressing issues.
In the context of the APAC region, countries like China and Australia are leading the way in production, with China's reserves estimated to be the largest in the world. In contrast, countries like Quebec face challenges related to water shortage and regulatory hurdles. The drilling process in the Permian Basin of West Texas, a majo producing region, has been a subject of controversy due to its potential impact on local farmers and water supply. Moreover, the use in the production of ethylene volumes is a significant application, with methane gas being a key feedstock in the production of this essential chemical. Carbon dioxide emissions from the drilling process and the potential for earthquakes are concerns that need to be addressed through stringent regulations. In conclusion, the market in the APAC region presents both opportunities and challenges. While the potential for substantial production and the ability to meet increasing energy demand are major drivers, concerns over water contamination, earthquakes, and regulatory hurdles need to be addressed to ensure sustainable and responsible development.
Shale deposits, rich in hydrocarbon gases such as methane, have emerged as a significant source for natural gas production. Methane extracted from shale formations is used for various applications, including electricity generation, domestic heating, and cooking. The extraction process of unconventional hydrocarbons from shale formations involves production techniques like horizontal drilling and hydraulic fracturing. The market has seen increased production due to mild winters, lockdown measures, and economic downturns, leading to a higher demand for natural gas. However, concerns regarding water contamination and ethical debates surrounding the extraction process have influenced the market's growth.
Alternative energy sources like green hydrogen, piped natural gas, nuclear power, and biofuels are gaining popularity, potentially impacting the market's future. Proved reserves of trillion cubic feet and petroleum demand continue to drive the market. Ethylene volumes derived are also essential for various industries. In conclusion, the market is a dynamic and complex industry influenced by various factors, including geological conditions, market trends, and environmental concerns. The market's future growth will depend on technological advancements, regulatory policies, and the global energy landscape. 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.
Increasing consumption of natural gas is notably driving the market growth. Shale deposits, rich in natural gas and other hydrocarbon gases, have emerged as a significant source of energy in the global market. Natural gas, a clean-burning fuel, is extracted from these deposits through various production techniques, including horizontal drilling and hydraulic fracturing. This unconventional source of hydrocarbons has gained popularity due to its affordability and versatility. Methane, the primary component of natural gas, is used extensively in electricity generation, domestic heating, and cooking. In the power sector, natural gas is preferred over conventional gas due to its lower carbon intensity and ability to generate electricity more efficiently. In the residential, commercial, and industrial sectors, natural gas is a viable alternative to oil and other fossil fuels for heating and cooking applications. The extraction process involves drilling through the rock formations, creating a pathway for the methane to flow to the surface. The use of natural gas as a fuel source has several benefits, including reduced greenhouse gas emissions compared to crude oil and coal.
However, the production process, particularly hydraulic fracturing, has been criticized for its environmental impact and potential health risks. Despite these concerns, the demand for natural gas continues to grow, driven by factors such as mild winters, lockdown measures, and economic downturns. The market is expected to expand further, with investment timescales for new production facilities and export facilities increasing. The shift towards renewable energy and carbon neutral alternatives, such as green hydrogen, may impact the future demand for natural gas. Proved reserves are substantial, making it a reliable source of energy for several countries. However, the extraction process can be complex and costly, leading to bankruptcies and financial challenges for some companies. The use of natural gas as a fuel source in transportation is also gaining attention as a potential alternative to crude oil.
The rise in the adoption of green fracking methods is an emerging trend shaping market growth. Shale deposits, rich in natural gas and hydrocarbon gases, have emerged as a significant source of energy in recent years. The extraction process of these unconventional hydrocarbons involves the use of hydrocarbon gases, primarily methane, which is released by cracking the rock formations. This process, known as hydraulic fracturing or fracking, has been a subject of controversy due to its environmental implications. The extraction through hydraulic fracturing consumes vast quantities of fresh water and generates liquid waste, which is toxic in nature. Moreover, the release of methane during the extraction process contributes to greenhouse gas emissions, which are detrimental to the environment. To mitigate the environmental impact of hydraulic fracturing, energy technology providers have introduced green fracking methods. These techniques include the use of green hydrogen, horizontal drilling, and vertical fracking, among others. Green hydrogen is produced from renewable sources, making it a carbon-neutral alternative to traditional hydrocarbon gases.
Horizontal drilling and fracking techniques reduce the surface area of the well, thereby minimizing the consumption of water and the generation of waste. This is a critical source of energy for various sectors, including electricity generation, domestic heating, cooking, and industrial processes. It is also used in transportation and power generation. The demand has been influenced by factors such as economic downturns, mild winters, and lockdown measures. The investment timescales for shale gas production and export facilities have been impacted by these factors as well. The industry has faced bankruptcies and challenges due to the high production costs and the volatility of hydrocarbon prices.
Shortage of water for fracking is a significant challenge hindering the market growth. Shale deposits, rich in natural gas and hydrocarbon gases, including methane, have emerged as significant sources of energy, transforming the energy sector in numerous countries. These unconventional hydrocarbons are extracted through various production techniques, such as horizontal drilling and hydraulic fracturing, also known as fracking. After drilling, casing, and cementing, perforations are made in the well pipe, allowing a high-pressure mixture of water, sand, and additives to penetrate the rock reservoir and create micro-fractures. This process, which uses sand grains to open the fractures, is essential for accessing shale gas. However, the availability of freshwater is a major challenge for the industry, particularly in regions with high water stress levels, which house over two-fifths of the world's shale reserves. As natural gas is used for electricity generation, domestic heating, cooking, and industrial processes, as well as in transportation, the demand for hydrocarbons remains strong. Conventional gas sources are being supplemented by unconventional hydrocarbons, necessitating the expansion of the market.
The extraction process involves horizontal drilling and various fracking techniques, including vertical fracking, rotary fracking, and hydraulic fracturing. Green hydrogen, produced from renewable energy sources, is increasingly being considered as a cleaner alternative to natural gas for power generation and industrial applications. Piped natural gas infrastructure is being developed to facilitate distribution, while efforts are underway to reduce the industry's greenhouse gas emissions and achieve carbon neutrality. The industry has faced numerous challenges, including bankruptcies, mild winters, lockdown measures, and economic downturns. Crude oil prices, hydrocarbon demand, and investment timescales have also impacted the industry's growth. Nuclear power and biofuels are alternative energy sources that compete with natural gas in the power generation sector. Proved reserves continue to be a critical factor in the industry's growth prospects. Thus, a shortage of water for fracking will impede the growth of the global market during the forecast period.
The market research 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 growth 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.
Antero Resources Corp. - The company offers shale gas such as Marcellus Shale gas in Western Virginia.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market 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 research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
Oil and Gas Transportation Market: Oil and Gas Transportation Market Analysis APAC, North America, Middle East and Africa, Europe, South America - US, Saudi Arabia, China, India, Russia - Size and Forecast
Mexico Oil and Gas Market: Mexico Oil and Gas Market by Type, Deployment and Application - Forecast and Analysis
APAC Hydraulic Fracturing Market: APAC Hydraulic Fracturing Market by Technology and Type - Forecast and Analysis
It is a significant source of natural gas, extracted from shale formations through various methods, including hydraulic fracturing and horizontal drilling. The market is driven by several factors, including the increasing demand for cleaner energy sources, technological advancements, and government policies. Is is a versatile fuel, used for heating, power generation, and industrial processes. Its availability in large quantities makes it an attractive alternative to traditional fossil fuels. The industry is expanding globally, with major producers in North America, Europe, and Asia-Pacific. The market is competitive, with numerous players involved in exploration, production, and distribution. The industry faces challenges, including environmental concerns, regulatory issues, and geological complexities. Despite these challenges, the market is expected to grow, driven by the increasing demand for natural gas and ongoing technological innovations.
Market Scope |
|
Report Coverage |
Details |
Page number |
167 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.31% |
Market Growth 2024-2028 |
USD 20.36 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.91 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 34% |
Key countries |
US, Canada, Saudi Arabia, China, and Russia |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Antero Resources Corp., BP Plc, Chesapeake Energy Corp, Chevron Corp., China National Petroleum Corp., China Petrochemical Corp., ConocoPhillips Co., COTERRA ENERGY INC., EOG Resources Inc, EQT Corp., Equinor ASA, Exxon Mobil Corp., Kolibri Global Energy Inc., Occidental Petroleum Corp., Pioneer Natural Resources Co., Range Resources Corp., Shell plc, SouthWestern Energy Co., TotalEnergies SE, and YPF Sociedad Anonima |
Market dynamics |
Parent market analysis, market forecasting, 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 the market forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Technology
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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