Shale Gas Market Size, Share, Growth & Industry Trend [2031]

Report Description

Shale Gas Market Outlook 2031

The global shale gas market size was USD 58.2 Billion in 2022 and is likely to reach USD 97.6 Billion by 2031, expanding at a CAGR of 5.9% during, 2023–2031. The market growth is attributed to the rising energy demand with conventional gas reserves.

Abundant reserves across the globe are driving the shale gas market. Shale formations hold vast amounts of natural gas in some countries such as Europe, the US, and Canada. The availability of shale gas has influenced the global energy markets, providing a competitive alternative to other energy sources. This has led to low natural gas prices and stable energy markets.

Get Free Sample Report

Rising environmental concerns are expected to fuel the market in the coming years. Natural gas from shale formations is extracted quickly and provides a flexible & reliable energy source to meet fluctuating demand. Natural gas is a clean burning fossil fuel compared to oil or coal, asit produces less emissions of greenhouse gases and pollutants when burned for energy. Thus, it reduces the carbon footprint in regions with strict environmental regulations. For instance,

• In 2021, Exxon Mobil Corporation, a global major in oil company, generated revenue of USD 285.640 billion. The company holds a leading industry inventory of resources, and it is a major shareholder of chemical manufacturers, integrated refiners, and marketers of petroleum.

The research report finds that the COVID-19 pandemic has negatively affected the market. Lockdowns and restrictions imposed during the pandemic resulted in the reduced energy demand across various sectors, including transportation, manufacturing, and commercial activities. This led to decreased natural gas consumption, affecting the shale gas market.

Artificial Intelligence Impact on Shale Gas Market

Artificial Intelligence (AI) played a vital role in the shale gas market. AI is used to process and analyze seismic data, enabling accurate identification of potential shale gas reserves. Machine learning algorithms are able to recognize patterns and anomalies in seismic data, helping geologists and geophysicists make well-informed decisions about drilling locations.

In addition, AI is used to create detailed reservoir models, enabling an improved understanding of shale formations. These models help in estimating reserves, well placement, and production forecasts with high accuracy.

Shale Gas Market Dynamics

Get Free Sample Report

Major Drivers

Rising technological advancements are propelling the shale gas market. Innovations in horizontal drilling and hydraulic fracturing have made it economically viable to extract gas from shale formations. These technologies have improved efficiency and consist of low production costs.

In addition, rising infrastructure developments are anticipated to boost the market during the forecast period. Investments in pipelines, processing plants, and storage facilities are fueled by the growth of the shale gas industry, further fostering the market growth. For instance,

• According to source data published in August 2023, extraction of shale gas and tight oil in the US has increased since the year 2000. The extraction is increased from 300 billion cubic feet in 2000 to 26 trillion cubic feet in 2022.

Existing Restraints

Regulatory operations and permitting challenges are restraining the market. Obtaining permits for shale gas drilling is time-consuming and costly. These regulatory changes impact the industry operations and profitability.

Additionally, concerns about the environmental impact of shale gas extraction, including water contamination and methane emissions, have led to increased regulatory scrutiny and public opposition.

Emerging Opportunities

Rising technological advancements are expected to create lucrative opportunities in the market in the coming years. Continuous advancements in drilling and extraction technologies have created previously inaccessible shale gas reserves. These advancements are expected to increase production potential during the forecast period.

Abundant domestic resource shale gas represents an abundant domestic energy resource, reducing dependence on foreign energy sources and enhancing energy security. Furthermore, there are opportunities for research and development in areas such as carbon capture and storage (CCS) to mitigate the environmental impact of shale gas extraction.

Scope of Shale Gas Market Report

The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Shale Gas Market Segment Insights

Technology Segment Analysis

Based on technology, the shale gas market is divided into rotary fracking, vertical fracking, and horizontal fracking. The vertical fracking segment is expected to expand at a significant growth rate during the projection period. The growth of the segment is attributed to resource availability and cost efficiency.

In some regions, vertical fracking is more suitable compared to other fuels, due to specific geological formations. It allows access to shale gas resources that are accessible in a vertical orientation.

Vertical fracking is cost-efficient. It is less expensive than horizontal drilling and fracking, in areas where the shale formations are thinner or the reservoir is more accessible in a vertical direction than others.

Get Free Sample Report

End-user Segment Analysis

On the basis of end-user, the global market is segregated into transportation, industrial, residential, power generation, and commercial. The power generation segment is projected to register a considerable CAGR during the forecast period, owing to the rising trend of coal-to-gas switching in power plants.

Several government regulations are focused on increasing shale gas share in the energy mix of the country. Additionally, power generation drives the highest demand for shale gas across the globe and further fuels the market.

The industrial segment is expected to hold a major share of shale gas in the market during the assessment period, due to increasing conversion of shale gas into valuable outputs. Countries rich in shale gas resources are expected to create opportunities for the market, to export liquified natural gas (LNG), opening up new markets, and potentially strengthening diplomatic ties.

Regional Outlook

In terms of region, the global shale gas market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the global market during the projection period.

The North America market growth is attributed to the increasing use of hydraulic fracturing and horizontal drilling to extract shale from underground reserves that are spread across the region. For instance,

• According to a published report, on August 25, 2023, shale gas and tight oil production in the US was 26.91 trillion cubic feet in 2022.

  Get Free Sample Report