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The shale gas market size is estimated to grow at a CAGR of 5.31% between 2023 and 2028. The market size is forecast to increase by USD 20.36 billion. The growth of the market depends on several factors, such as the advantages associated with shale gas, increasing consumption of natural gas, and technological advancements in drilling techniques.
This shale gas market report extensively covers market segmentation by technology (horizontal fracking, vertical fracking, and rotary fracking), application (industrial, buildings, and transportation), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2018 - 2022.
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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. The increasing consumption of fuel in developing economies such as India and China due to rapid industrialization and urbanization will increase the demand for natural gas. Natural gas is a clean energy fuel, as it releases around 40% lesser CO2 emissions (per unit of energy produced) than coal and up to 20% lesser emissions than oil, as per the IEA. The abundance and versatility of natural gas, along with its clean-burning properties, are the major factors driving its demand. The use of natural gas in fertilizer plants, power generation units, petrochemicals, transportation, and residential and commercial sectors has grown considerably in natural gas-producing countries such as China and the US. China has been using natural gas for many industrial and household applications.
In addition, the US is one of the largest consumers of natural gas. The demand for natural gas also increased due to its growing use in the transportation sector. The demand for natural gas as a transportation fuel is increasing, especially in developing countries such as China and India. The demand for natural gas for power generation in developing countries is also increasing. Therefore, the increasing demand for natural gas will lead to an increase in shale gas production, which will drive the growth of the global shale gas market during the forecast period.
The rise in the adoption of green fracking methods is an emerging trend shaping market growth. Hydraulic fracturing is a process where chemically treated, high-pressure water is used to crack rock formations to release the oil and natural gas trapped between the rocks. This process is hazardous to the environment. This method of fracturing leads to a huge consumption of fresh water and the creation of liquid waste that is toxic in nature. It also leads to the release of GHGs into the atmosphere due to the leakage of methane, a heat-trapping gas. To reduce the negative impact of hydraulic fracturing on the environment, energy technology providers have come up with some green fracking methods that do not harm the environment.
However, some companies are also using natural gas- or solar energy-powered motors and engines to substitute diesel-powered drilling equipment to control GHG emissions. Such eco-friendly methods of fracking are expected to decrease environmental hazards and increase the adoption of hydraulic fracturing, which would support the growth of the global shale gas market during the forecast period.
Shortage of water for fracking is a significant challenge hindering the market growth. The emergence of shale gas as an unconventional source of energy has changed the landscape of energy security in several countries. One common method of shale gas extraction is hydraulic fracturing or fracking. After drilling the well, casing, and cementing, perforations are made in the well pipe, and with a high-pressure mixture of water, sand, and additives, micro-fractures are created in the rocks, which are opened using sand grains. The shortage of water is a challenge for the exploration of shale gas in India. Land acquisition is also a challenge in the country.
Moreover, the limited success of exploration activities for shale gas by the Oil and Natural Gas Corporation Limited in basins such as Cambay, Cauvery, Krishna-Godavari, and Assam-Arakan might lead to the closing of such projects in the country. Thus, a shortage of water for fracking will impede the growth of the global shale gas 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.
Global Shale Gas Market 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 horizontal fracking segment is estimated to witness significant growth during the forecast period. Horizontal fracking significantly increases the contact area between the wellbore and the shale rock, allowing for more efficient extraction of shale gas. This results in higher production rates and greater gas recovery compared to vertical drilling. The increased gas recovery and production rates associated with horizontal fracking make it economically viable, as it offsets the higher initial drilling and fracturing costs.
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The horizontal fracking segment was the largest segment and was valued at USD 32.26 billion in 2018. Horizontal wells provide improved connectivity with the reservoir, allowing for a more even distribution of fracking fluid and proppant material along the wellbore and across the shale formation. Horizontal wells can be used for both exploratory purposes and long-term gas production. Operators can initially drill horizontal wells to explore and assess the reservoir's potential before committing to full-scale development. Furthermore, horizontal wells require fewer surface locations, minimizing the impact on local communities and ecosystems, reducing truck traffic, and lessening surface emissions. Thus, factors such as improved reservoir connectivity, exploration efficiency, and reduced surface disruption will drive the growth of the horizontal fracking segment and impel the global shale gas market during the forecast period.
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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 shale gas market in the APAC region is expected to grow during the forecast period. APAC has significant shale gas resources, including shale formations in countries like China, India, Australia, and Indonesia. The exploration and development of these reserves offer the potential for substantial production. Rising energy demand in the APAC region, driven by population growth and economic development, has created a need for additional energy sources. Shale gas can help meet this growing demand. The rising price of crude oil is also leading to an increase in investments from members in the value chain of the oil and gas E and P sector to gain high and stable profitability.
As a result, drilling projects are increasing. In India, the Ministry of Petroleum and Natural Gas approved oil and gas projects worth approximately USD 13.51 billion for North Eastern states in India in September 2021. These projects are expected to be completed by 2025. Therefore, the increased oil and gas discoveries and oil and gas E and P projects in APAC will increase the oil and gas drilling activities, which, in turn, will drive the demand for shale gas in the region during the forecast period.
The growth of the shale gas market in APAC declined due to the outbreak of the COVID-19 pandemic in 2020. However, in 2021, large vaccination drives and the lifting of lockdown restrictions led to the reopening of shale oil processing industries along with the increase in the availability of workers. In addition to that, APAC countries such as China and Japan are developing regulatory frameworks for shale gas exploration and production. Creating clear, transparent, and stable regulations can encourage investment and responsible development. Such factors will boost the growth of the shale gas market in APAC during the forecast period.
The shale gas market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Shale Gas 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 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 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. |
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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