Oil Shale Market Size was valued at USD 3.1 Billion in 2021. The Oil Shale market is projected to grow from USD 3.2 Billion in 2022 to USD 5.65 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 7.17% during the forecast period (2022 - 2030). Oil shale is a fine-grained sedimentary rock generated by the compaction and heating of organic-rich sediments and containing significant amounts of kerogen. Oil shale is similar to crude oil as the products obtained are similar like diesel fuel, gasoline which is also known as petrol, liquid petroleum and others. As the use of crude oil in a large scale is resulting in the depletion of fossil reserves, and may soon get exhausted in coming decades, the use of Oil shale will be in a great use for manufacturing petroleum products. These factors are the ley driving factor for the market growth of Oil Shale Market.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
As the demand and the fluctuation in the rate and supply of crude oil are increasing day by day an alternative source of fuel is used which shows the same properties as crude oil which is oil shale. Oil shale is a type of organic-rich rock that contains kerogen. The products that can be derived from the oil shale are diesel fuel, gasoline, liquid petroleum gas (LPG), and other gases like butane. A new process of extraction is being applied in which the oil is directly extracted from the ground which directly decreases the cost of the raw material. As per the report of RAND, Shell Company has conducted a small-scale test in which the shale oil is extracted by slow underground heating via thermal conduction, which can cut down the prices of crude oil to nearly about USD 20 per barrel. In India, ONGC is carrying out shale gas and oil exploration activities in Cambay, Cauvery, Krishna-Godavari, Assam and Arakan basins, and on the other hand Indian Oil is also carrying shale oil and gas exploration in Rajasthan and Assam basins. Oil shale is vastly used in electricity consumption, used as a fuel in steam boilers to generate electricity, further more industry like chemical and cement industry also use oil shale in their product. America has the huge oil shale reserves, and is the biggest importer of the oil shale till date. Due to this many other industries like transportation will get a good opportunity to expand their business in importing and exporting their business to great extent. Also, the fuel prices can be managed which intends to decrease the cost of every product In the market, as the transportation cost is cut down. Several nations have huge amounts of shale oil resources that might be utilized to reduce their reliance on oil imports to meet the demands of the country's petrochemical sector. This promotes the expansion of the nation's shale oil sector by giving the incentive to invest in shale oil production. Furthermore, the market share of shale oil in transportation and power production has been declining as newer and cleaner alternatives have replaced it. Nonetheless, it is the most significant chemical in the petrochemical segment, without which it would be considerably more difficult to synthesize the needed chemicals.
The petrochemical industry is predicted to develop considerably throughout the projection period due to increased usage of petrochemical products, the advent of novel techniques such as direct crude cracking, and increased investment in the sector. Expansion in the petrochemical industry is predicted to enhance shale oil consumption, assisting the shale oil market's growth. Thus, Fluctuating in demand for crude oil and huge shale reserves is a factor driving the growth of the Oil Shale market revenue.
03 November 2022 Cairn Oil Starts Shale Exploration In Barmer. The company will drill at least three to four wells in FY23, said Prachur Sah, deputy chief executive officer of Cairn Oil. Vedanta Group's Cairn Oil & Gas has started exploration for shale in Barmer, Rajasthan, with global energy major Halliburton Energy Services drilling the first well. The company has completed the subsurface study and identified locations for shale activity in the existing oil fields of Barmer.
Based on process, the Oil Shale Market includes Extraction (mining), retorting and refining. The extraction process includes mining sedimentary rocks, which can be done by surface or underground mining. The new mining process includes the mining of only liquid oil from the rocks by a certain process of heating inside the ground. The Oil Shale Exploration segment held the majority share in 2021 contributing to around ~42.65% with respect to the Oil Shale Market revenue. This is because oil shale is first removed from the soil by surface or underground mining. The rock is crushed before being retorted (heated) to extract the shale oil. The shale oil is next processed to remove contaminants like sulfur. In situ extraction of shale oil is a novel and experimental approach.
Figure 2: Oil Shale Market, by Process, 2021 & 2030 (USD Million)
Oil Shale by Method Insights
The Oil Shale Market segmentation, based on method, includes In-Situ and Ex-Situ. The In situ segment held the majority share in 2021 contributing to around ~63.19% with respect to the global Oil Shale market revenue. In-Situ the oil is heated from its oil window while the shale is underground with the help of electric current, no crushing of the rock has to be done in this process. After that the oil is been pumped out from the well with the help of pumps and a further refining process is been done, the In-Situ is process that is been widely used nowadays for the extraction of oil shale, also advancement in technologies is been done to enhance the mining in In-Situ process.
The Oil Shale Market segmentation, based on product, includes gasoline, diesel, kerosene, and others. The gasoline segment held the majority share in 2021 contributing to around ~43.14% with respect to the Oil Shale Market revenue. In the Oil Shale Market, gasoline is the largest and fastest-growing segment. This is due to its benefits since it is widely employed in the generation of energy, accounting for one-quarter of all power generated in the United States. Shale gas is having a beneficial impact on supplies and consumer prices for natural gas, as well as additional environmental benefits.
July 2022: Schlumberger and Oilex are awarded a contract for Schlumberger to offer hydraulic fracturing services, coiled tubing and nitrogen services, and perforation services for the planned re-frac of the Cambay C-77H well in Gujarat, India.
16 February 2023 India's fuel demand sees a significant increase in February. India's fuel demand witnessed the sharpest rebound in February as diesel consumption rose by double digits after a winter lull in the previous months, as per preliminary industry data.
Figure 3: Oil Shale Market, by Product, 2021 & 2030 (USD Million)
Oil Shale End User Insights
The Oil Shale Market based on end-user applications, includes automobile fuel, the chemical industry, the cement industry & others. The main use of oil shale is that the products such as diesel, petrol and many other petroleum products can be produced, which caters for a huge demand across the globe and has a great significance in daily life from transportation, construction, power generation etc. Moreover, the need for petroleum products is increasing on a great scale.
April 2022: The prior contract between CNX Resources Corporation (NYSE: CNX) and Evolution Well Services has been extended for four years. Evolution has been providing CNX with industry-leading electric fracturing technology since 2019. For strategic basin development, the technology is a 100% electric, natural gas-fueled, gas turbine-powered fracturing fleet.
By Region, the study segments the market into North America, Europe, Asia-Pacific and Latin America and Middle East & Africa.
North America dominates the world market where the United States has significant oil shale resources, primarily within the Green River Formation in Wyoming, Utah and Colorado. According to EIA, oil shale resources underlie a total area of 16,000 square miles and represent the largest known concentration of oil shale in the world and have become the largest exporter of oil shale.
In Europe countries like Russia have a wide range of oil shale resources and are also big exporters of oil shale. According to the EIA report, Russia has a 75 billion barrels share of oil resources and is also a major exporter of oil shale after the USA.
Further, the major countries studied are The USA, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, Argentina, Brazil, Mexico, South Africa and GCC countries.
Major market players are focusing on the R&D of the oil shale to refine it so to make it more efficient fuel to use. Majorly companies are also been focused on the extraction of the oil shale from the rocks as it is not an easy process to extract and a lot of water is been polluted in the extraction. New technology in In-Situ like fracturing in which oil is converted into the ground itself and then pumped out, in this process there is no need to extract rock and crush them. New advance technologies fracturing of rocks is done so to extract the oil more efficiently.
ExxonMobil Corporation (ExxonMobil) is an American multinational oil & gas corporation. It performs crude oil refinement, makes lube base stocks and finished lubricants, transports, trades, and sells petroleum products. Additionally, the business produces and sells a wide range of specialty goods in addition to commodity petrochemicals such olefins, aromatics, polyethylene, and polypropylene plastics. High-performance fuels and lubricant products made by ExxonMobil power global transportation, increase efficiency, and lower the entire life-cycle emissions of our clients. It runs through a network of production facilities, transit hubs, and distribution facilities. North America, Latin America, Asia Pacific, Europe, the Middle East, and Africa are all operational regions for the company.
Chevron Corporation (Chevron) is an integrated oil & gas company. It operates along the whole value chain of the oil & gas industry, from exploration and production to storage and pipeline transportation to refining, marketing, and distribution of oil and gas products. With quality base oils as their foundation, Chevron lubricants has more than 30 years of experience producing finished lubricants. Customers on five continents rely on Chevron lubricants to deliver great, dependable performance in a variety of operating circumstances, whether they need motor oil for the family car or lubricants for heavy industrial equipment. The company also sells petrochemicals and additives. The company searches for, produces, and transports crude oil and natural gas. It also refines, markets, and distributes transportation fuels and lubricants. In the areas where it operates, Chevron has stakes in gas-to-liquid facilities. North America, South America, Europe, Asia, the Middle East, and Africa are all operational hubs for the organization.
| Report Attribute/Metric | Details |
| Market Size 2021 | USD 3.10 |
| Market Size 2022 | USD 3.20 |
| Market Size 2030 | USD 5.65 |
| Compound Annual Growth Rate (CAGR) | 7.17% (2022-2030) |
| Base Year | 2021 |
| Forecast Period | 2022-2030 |
| Historical Data | 2019 & 2020 |
| Forecast Units | USD Million & Barrel |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Process, Method, Product, End-User and Region |
| Geographies Covered | North America, Europe, Asia Pacific, Latin America and Middle East Africa |
| Countries Covered | The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | American Shale Oil LLC, AuraSource, Inc, Blue Ensign Technologies Ltd, Chevron Corporation, Electro-Petroleum Inc., Exxon Mobil Corporation, Occidental Petroleum Corporation, Chesapeake, MARATHON OIL COMPANY, Cabot Oil & Gas Corporation, Halliburton Energy Services. |
| Key Market Opportunities | Inflating crude oil prices and the cost benefits of using oil shale over conventional energy resources |
| Key Market Dynamics | Fluctuating in demand for crude oil and huge shale reserves |
Oil Shale Market Highlights:
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