Shale Gas Market Size

Global Shale Gas Market Overview

Shale Gas Market Size was valued at USD 57.8 Billion in 2022. The Shale Gas market is projected to grow from USD 61.2 Billion in 2023 to USD 96.8 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.90% during the forecast period (2023 - 2032). Expanding energy demand, decreasing conventional gas supplies, expanding oil use, and the expansion of sectors dependent on oil, are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Shale Gas Market Trends

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  Rising energy demand along with depleting conventional gas reserves is driving the market growth

  
  

Shift to unconventional natural gas supplies including shale gas, tight gas, and coal bed methane as a result of rising energy demand and dwindling conventional gas reserves. More technological developments in shale drilling are anticipated to boost market expansion. Commercial quantities of shale gas that are trapped deep within the shale source rock can be extracted using hydraulic fracturing in combination with additional drilling methods like directional drilling and horizontal drilling. Because there are considerable shale gas deposits all over the United States, the market is expected to increase significantly. New reserves were found, which led to an increase in shale output. The United States generated 25.3 trillion cubic feet of dry shale gas in 2019, up from 22.1 trillion cubic feet in 2018, according to the International Energy Association.

The process of extracting shale gas produces hazardous pollutants and uses a lot of water. Environmental concerns have increased as a result, and activists have become more vocal in their opposition, which is projected to impede industry expansion. Technology developments for deep-water and ultra-deepwater unconventional gas drilling are anticipated to give the market demand the necessary boost. Production, processing, gas transportation, storage, and distribution to industrial, commercial, and residential users are all parts of the market supply chain. The COVID-19 epidemic, however, has had a significant negative impact on the upstream, midstream, and downstream portions of the shale gas supply chain, leading to a significant imbalance between supply and demand.

Drilling-related methane gas emissions could endanger the environment by causing air pollution. Additionally, improper surface water contamination due to the improper disposal of huge amounts of chemically treated water used in hydraulic fracturing operations is a possibility. NGOs and organizations that defend the environment from all over the world have criticized this. Local farmers and people have frequently protested hydraulic fracturing due to its effects on health and agricultural.  A typical fracking well uses between 2 and 10 million gallons of water during fracking operations, which adds to the strain on the water supply, especially in areas that are prone to drought. Thus, driving the Shale Gas market revenue.

Shale Gas Market Segment Insights:

Shale Gas Technology Insights

The Shale Gas Market segmentation, based on technology, includes horizontal fracking, vertical fracking, and rotary fracking. In 2022, the vertical fracking segment held the greatest market share. This is due to its advantages over other fuel types, which include low cost and low carbon breakdown.

Shale Gas End User Insights

The Shale Gas Market segmentation, based on end user, includes residential, commercial, industrial, power generation, and transportation. In 2022, the power generation segment held the greatest market share. It is anticipated that the rising trend of power plants converting from coal to gas will favorably impact market growth. Governments aim for a rising proportion of shale gas in the nation's energy mix. Due to its cleaner burning than other fossil fuels, power generation drives the majority of demand in international markets.

Figure 1: Shale Gas Market, by End User, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Shale Gas Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Shale Gas Market dominated this market in 2022 (45.80%). Due to the use of horizontal drilling and hydraulic fracturing to extract ultra-hard shale from deep underground reserves spread across the nation, the U.S. is the main contributor to regional growth. The International Trade Center reports that due to increased exploration and production, the United States held the top spot in the global rankings of gas producers in 2018. Prior to the emergence of shale gas, the United States was a net importer of natural gas; now, it is an exporter. Major U.S. players are spending extensively in unconventional development since it is a dependable way to reduce carbon footprint. Further, the U.S. Shale Gas market held the largest market share, and the Canada Shale Gas market was the fastest growing market in the North America region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Shale Gas Market Share By Region 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Shale Gas market accounts for the significant market share. Large reserves, new end-users of hydraulic fracturing technology, horizontal drilling, and the discovery of new shale gas sources are only a few of the reasons for this. Further, the German Shale Gas market held the largest market share, and the U.K Shale Gas market was the fastest growing market in the European region

The Asia Pacific Shale Gas market is expected to register fastest growth from 2023 to 2032. China is thought to have the most technically recoverable resources in the entire planet. China's government has established large output goals. Large market participants have a lucrative chance to explore and produce unconventional gas in the nation thanks to these established targets, which draw significant investments from around the globe. Moreover, China’s Shale Gas market held the largest market share, and the Indian Shale Gas market was the fastest growing market in the Asia-Pacific region.

Shale Gas Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Shale Gas market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Shale Gas industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Shale Gas industry to benefit clients and increase the market sector. In recent years, the Shale Gas industry has offered some of the most significant advantages to medicine. Major players in the Shale Gas market, including Southwestern Energy Company, EQT Corporation, Equinor ASA, Repsol SA, SINOPEC/Shs, Chesapeake Energy Corporation, Royal Dutch Shell PLC, Exxon Mobil Corporation, Chevron Corporation and PETROCHINA/Shs, are attempting to increase market demand by investing in research and development operations.

Energy firm Equinor ASA (Equinor), originally Statoil ASA. Hydrocarbons are sought after, developed, and produced. It also has holdings in different oil and gas pipelines and runs refineries, processing plants, storage facilities, and ports. The business sells, trades, and moves refined goods, natural gas liquids, condensate, and crude oil. With an emphasis on renewable energy and low-carbon solutions, it is also present in projects involving solar farms, offshore wind, carbon capture and storage, and hydrogen. Major operations are carried out by Equinor on the Norwegian continental shelf. It conducts business on the continents of Europe, North and South America, Africa, and the Asia-Pacific. The headquarters of Equinor are in Stavanger, Norway. The construction of a USD 30 billion LNG facility in Tanzania involving Tanzania, Norway's Equinor, and Britain's Shell is scheduled to begin in March 2023. Contract discussions are now taking place.

An integrated oil and gas business, Shell plc (often known as Shell), was formerly known as Royal Dutch Shell Plc. The company uses conventional fields and sources, including tight rock, shale, and coal formations, to explore for and produce oil and gas. It runs petrochemical and refining complexes all around the world. Lubricants, bitumen, liquefied petroleum gas, and petrochemical goods such raw materials for plastics, paints, and detergents are among Shell's product offerings. In Brazil, the firm is a significant biofuel producer. It also has stakes in a number of gas to liquids (GTL) and liquefied natural gas (LNG) projects. With the help of distributors across Europe, Asia, Oceania, Africa, North America, and South America, the corporation markets its goods both directly and indirectly. The U.K.'s capital of England, London, is home to Shell. A memorandum of understanding (MoU) was signed in March 2023 between the state-owned natural gas processing and distribution firm GAIL (India) Ltd. and Royal Dutch Shell Plc to investigate the feasibility of importing ethane from the United States for the Indian market.

Key Companies in the Shale Gas market include

• 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

Shale Gas Industry Developments

December 2022: Since it was discovered in 2012, China's Fuling shale gas deposit has generated more than 53 billion cubic meters of shale gas. A whopping 34% of the nation's proved reserves are contained in the shale gas field's 897.5 billion cubic meters (bcm) of proven reserves. Additionally, the yearly output from the shale gas resource increased from 142 million cubic meters in 2013 to more than 8.5 billion cubic meters in 2021.

Shale Gas Market Segmentation

Shale Gas Technology Outlook

• Horizontal Fracking


• Vertical Fracking


• Rotary Fracking

Shale Gas End User Outlook

• Residential


• Commercial


• Industrial


• Power generation


• Transportation

Shale Gas Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America