Shale Gas Market 2020 and Forecast 2021-2027

                                          
Report Overview: Shale Gas Market


The global shale gas market size was valued at USD 57.2 billion in 2020 and is projected to grow at a compound annual growth rate (CAGR) of 7.4% from 2021 to 2027. Rising energy demand along with depleting conventional gas reserves has resulted in a shift towards unconventional natural gas reserves such as shale gas, tight gas, and coal bed methane.

Increasing technological advancements in shale drilling are further expected to augment market growth. Hydraulic fracturing along with additional techniques of directional drilling and horizontal drilling obtains commercial quantities of shale gas that is trapped deep within the shale source rock.

In the U.S., the market is anticipated to witness substantial growth owing to the presence of significant shale gas reserves across the country. The Discovery of new reserves resulted in the growing production of shale. According to the International Energy Association, the U.S. produced 25.3 trillion cubic feet of dry shale gas in 2019 as compared to 22.1 trillion cubic feet in 2018.

The production activity of shale gas generates harmful emissions and requires a substantial amount of water. This has led to rising environmental concerns and strong opposition from activists, which is expected to hinder the market growth. Technology advancements for non -conventional gas drilling in deep water and ultra-deepwater are expected to provide required stimulus to industry demand.

The market supply chain includes production and processing, gas transmission and storage, and distribution to large volume customers, commercial customers, and residential customers. However, the COVID-19 pandemic has severely impacted the upstream, midstream, and downstream segment of the shale gas supply chain, creating a major gap in the supply and demand balance.

Application Insights: Shale Gas Market

The power generation segment accounted for the largest revenue share of 36.0% in 2019. Increasing trend of coal to gas switching in power plants is expected to positively influence market growth. Governments are targeting an increasing share of shale gas in the energy mix of the country. Power generation drives the highest demand in international markets owing to its cleaner combustion quality as compared to other fossil fuels.

Shale gas conversion into value-added outputs is estimated to drive the industrial segment over the forecast period 2021-2027. For almost any shale gas-rich country, opportunities to use this abundant resource to expand industrial output would create higher value-added products that could then be sold abroad more easily than the primary energy commodity. For instance, the production of chemicals and fertilizers and several other commodities requires natural gas as a feedstock.

Majority of natural gas consumed in the residential sector finds application in water heating and space heating. A growing network of piped natural gas with direct supply to homes is expected to exponentially boost the shale gas market over the forecast period. Moreover, increasing usage of CNG in the transportation sector is anticipated to grow at the highest rate over the next seven years.

Regional Insights: Shale Gas Market

North America accounted for the largest revenue share of more than 61.0% in 2019 and is projected to continue its dominance over the forecast period. The U.S. is the major contributor to the regional growth owing to the deployment of hydraulic fracturing with horizontal drilling for drilling ultra-hard shale deep underground reserves present across the country.

According to the International Trade Center, the U.S. accounted for first position in the world rankings of gas producers in 2018 owing to the growing exploration and production. The U.S. became a net exporter of natural gas as compared to the net importer status prior to shale gas development. Major players in the U.S. are heavily investing in unconventional development as it is a reliable option to minimize carbon footprint.

Canada provides long-term prospects for natural gas supply across North America owing to the development of well completion techniques such as multistage hydraulic fracturing and drilling techniques such as long-reach horizontal wellbores. Shale gas resources are found across various locations in Canada including British Columbia, Saskatchewan, Alberta, Ontario, New Brunswick, Manitoba, Quebec, Nova Scotia, and the territories.

Technically recoverable resources in China are estimated to be the largest in the world. The government of China has set significant production targets. These set targets attract huge investments from the world over and provide lucrative opportunity for major players in the market to explore and produce unconventional gas in the country

Key Companies & Market Share Insights: Shale Gas Market

The market is exceedingly competitive in nature and is lead by major international oil and gas conglomerates which account for a significant presence across the value chain. Shifting focus towards undeveloped resources in China is anticipated to become a key strategy for the industry participants. Companies dealing with alternative energy coupled with conventional O&G companies form the mix of the market.

Vendors are heavily investing in R&D activities owing to the development of efficient drilling techniques to reduce the cost of exploration and production. Strategic initiatives like these aimed by the vendors will result in enhancing their market share and growth over the forecast period. Some of the prominent players in the shale gas market include:

Key companies Profiled: Shale Gas Market Report

 	
Royal Dutch Shell PLC
 	
ConocoPhillips
 	
PetroChina Company Limited
 	
Exxon Mobil Corporation
 	
Chevron Corporation
 	
Chesapeake Energy Corporation


This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. Trusted Business Insights has segmented the global shale gas market report on the basis of application and region:

Application Outlook (Volume, Bcf; Revenue, USD Billion, 2016 - 2027)

 	
Industrial
 	
Power Generation
 	
Residential
 	
Commercial
 	
Transportation