Market Overview
According to a Comprehensive Research Study by Market Research Future (MRFR), Shale Gas Market Information by Technology, End User, and Region - Forecast till 2032” The Shale Gas market can project growth from USD 61.2 Billion in 2023 to USD 96.8 Billion by 2032, with a CAGR of 5.90% from 2023 to 2032.
Shale formations include natural gas that has been dubbed "shale gas" that has been found trapped in tiny or submicroscopic pores. This natural gas is made up of both naturally occurring hydrocarbon gases and organic matter (dead plants and animals).
Methane (CH4), the main hydrocarbon sought by exploration companies, often accounts for 70% to 90% of shale gas. This gas is employed for energy production, home heating, and cooking.
Market Competitive Landscape:
· Southwestern Energy Company
· EQT Corporation
· Equinor ASA
· Repsol SA
· SINOPEC/Shs
· Chesapeake Energy Corporation
· Royal Dutch Shell PLC
· Exxon Mobil Corporation
· Chevron Corporation
· PETROCHINA/Shs
Market Drivers:
From 15,213 billion cubic feet in 2015 to 26,139 billion cubic feet in 2021, the US's shale gas production increased by more than 70% during the previous seven years. Shale gas production may rise as a result of the drilling of new wells. Canada is believed to contain significant conventional gas reserves, despite the fact that the US for many years relied heavily on it for its natural gas supply before the recent shale gas boom in the country.
Due to the depletion of traditional natural gas supplies, one such unconventional option that Canada's industry is turning to is shale gas. In order to eventually smooth out the gap in shale gas output, shale gas deposits are currently being investigated and produced in Alberta, British Columbia, Quebec, and New Brunswick.
Alternative natural gas resources including coal bed methane, shale gas, and tight gas are becoming more popular as a result of the diminishing supplies of traditional gas and the increasing need for energy on a worldwide scale. Shale drilling's rapid technological developments are also expected to fuel industry growth. Shale gas is tightly packed inside the shale resource rock, but hydraulic fracturing, together with sophisticated horizontal drilling techniques, directional drilling, and other procedures, unlock its economic potential.
Market Restraints:
Shale gas extraction uses a lot of water and generates dangerous pollutants. As a result, environmental concerns have grown, and activists have become more outspoken in their criticism, which is expected to hinder industrial growth. Nevertheless, it is projected that technological advancements in deep- and ultra-deepwater non-conventional gas drilling would raise sector demand.
Market Segmentation
Rotary, vertical, and horizontal fracking are the three shale gas technologies. The market segment for vertical fracking held the biggest market share in 2022. This is due to its superior performance in terms of price and reduced carbon breakdown compared to other fuel sources.
The Natural gas exploration Market segmentation includes end-user segments for transportation, power generation, residential, commercial, and industrial applications. In 2022, the market share that belonged to the power-generating industry was the largest. Market expansion is anticipated to benefit from the growing trend of power plants converting from coal to gas. Governments aim to make shale gas a bigger part of the nation's energy mix. Since electricity burns cleaner than other fossil fuels, it accounts for the majority of demand in global markets.
Regional Insights
Since 2022 (45.80%), North America Shale Gas has retained the leading spot due to an increase in horizontal drilling and hydraulic fracturing to extract exceptionally hard shale from significant deep underground deposits. According to the International Trade Centre, increased exploration and production allowed the United States to keep its top spot as the world's top gas producer in 2018. Due to the emergence of shale gas, the United States is no longer a net importer of natural gas but rather an exporter. Major U.S. players are spending extensively in unconventional development because it is a dependable method to reduce carbon footprint.
The market for shale gas in Europe has experienced tremendous expansion thanks to large reserves, new end-users of hydraulic fracturing technology, horizontal drilling, and the discovery of new shale gas sources. While the German shale gas market had the largest market share, the U.K. shale gas market was growing the fastest in Europe.
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