Demand for Shale Gas is Increasing in Several Industries to Fuel Growth of Shale Gas Market
Shale gas market has been garnering a lot of attention because of the growing interest in unconventional energy sources. According to the United States Department of State, in 2020, dry shale gas production in the United States was estimated to be at 26.3 trillion cubic feet (TCF) by the Energy Information Administration (EIA). Furthermore, total dry shale gas production in 2020 accounted for almost 79 percent of total dry natural gas production in the United States. For instance, most of the natural gas and oil wells in the United States are on land, some are drilled into the ocean floor in waters off the US coast. According to Energy Information Administration (EIA) total offshore dry natural gas production was at 1 TCF in 2020, with 71 percent coming from federal waters in the Gulf of Mexico. Federal Gulf of Mexico production was around 0.7 TCF, or 2% of total dry natural gas production in the United States. In 2020, offshore production from Alabama, Alaska, California, Louisiana, and Texas accounted for around 0.3 percent of total US dry natural gas production.
In response to the growing demand for alternate energy sources, global energy consumption has surged. The cost effectiveness, and environmental friendliness of shale gas are driving up the demand. Traditional techniques of shale gas extraction are impractical because they are time-consuming, expensive, and environmentally unfriendly. Hydraulic fracturing is gaining popularity as a result. As a result, the shale oil and gas revolution are gaining traction. This opens attractive growth opportunities in the global industry.
Lower Cost and Minimal Carbon Breakdown to Prove Ideal for the Growth of Shale Gas Market
Horizontal fracking is expected to be the fastest-growing segment of the shale gas market over the forecast period. With its low cost and minimal carbon breakdown as compared to other fuels, shale gas market is expected to grow at a substantial pace. According to the United States Environmental Protection Agency, the fracking process begins with a well that is bored vertically or at an angle from the surface to a depth of 1 to 2 miles (1.6 to 3.2 kilometres) or more. The vertical well is then enclosed in steel and/or cement to prevent it from leaking into the groundwater supply. Vertical wells are the most common type of oil and gas well, and they travel straight down to a depth of 50-300 feet. These wells pierce the rock strata housing the oil or gas reserve perpendicularly. Hydraulic fracturing is widely employed on vertical wells for "well stimulation" to boost the well's efficiency and output. This method of fracking requires less pressure and volume than horizontal good fracturing.
Fresh Shale Gas Wells Developed Across the American Continent to Drive Growth of North American Shale Gas Market
North America will be the leading country for shale gas in the forecast period. The United States is the world's largest shale gas producer in recent times. Several countries, including Brazil, Canada, China, and Argentina have attempted but failed to replicate the American shale boom. During the global hydrocarbon market's downturn in January 2021, Reliance Industries Ltd agreed to sell its whole ownership in certain upstream assets in the Marcellus Shale Gas asset in south-western Pennsylvania for USD 250 million.
The properties were sold to Northern Oil and Gas (NOG) Inc., which was controlled by RIL's wholly owned business Reliance Marcellus LLC and operated by affiliates of EQT Corporation, a US-based energy corporation involved in hydrocarbon exploration and pipeline transport. Many smaller investors in the shale region have had to postpone or abandon projects because of COVID-19 pandemic's shock. From 835.247 billion cubic feet (BCF) in 2019 to 850.192 BCF in 2020, shale gas production in the United States increased by 1.8 percent. Due to fresh wells being developed across the country, shale gas production could rise even more. Canada is believed to contain considerable conventional gas reserves, and before the recent shale boom in the country, it was a major natural gas supplier to the United States.
However, as traditional natural gas supplies become less available, Canada's industry is moving to unconventional sources such as shale gas. Many oil and gas companies are already exploring and developing shale gas resources in Alberta, British Columbia, Quebec, and New Brunswick, which could help to balance the shale gas output disparity in the future. During the forecast period, the region's current scenario may call for greater natural gas supply, attracting investment in shale gas exploration and production. As a result of the continent's massive shale production, North America will continue to its dominance in shale gas market.
Global Shale Gas Market: Competitive Landscape
The key companies in shale gas market are launching new goods as well as forming new collaborations, alliances, and partnerships. For instance, in January 2021 Schlumberger's onshore hydraulic fracturing business in the United States, and Canada was acquired by Liberty Oilfield Services Inc. (OneStim). The acquisition will add to the company's hydraulic fracturing portfolio. On the other hand, in July 2021, Express Fiber, a single-use fibre optic cable from Halliburton Company, provides accurate, direct subsurface measurements, including cross-well communication, at a price point that allows fracture monitoring on every good pad. Operators currently confront a tremendous difficulty in understanding and optimising well and fracture interference. Unlike existing cross-well monitoring approaches that produce indirect estimations, Express Fiber uses distributed acoustic sensing (DAS) to obtain a direct measurement of microseismic, strain, and temperature. Express Fiber, when combined with our intelligent fracturing and subsurface monitoring services, offers operators real-time actionable data on fracture growth and well interference, allowing them to enhance completion designs and save money.
Few of the players in the shale gas market include Energy Company, Schlumberger’s, EQT Corporation, Chesapeake Energy Corporation, Repsol SA, SINOPEC/Shs, Equinor ASA, Exxon Mobil Corporation, Royal Dutch Shell PLC, Chevron Corporation, and PETROCHINA/Shs.
Regional Classification of the Global Shale Gas Market is Listed Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability.
Key Elements Included In The Study: Global Shale Gas Market
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