Asia pacific region looks to be more profitable for the Shale gas market
There has been a vast increase in usage of natural gases as the green environment & infrastructure policies are on the rise like never before. From the time of its discovery in 1821, shale gas has been on the rise; especially after the millennium. In 2000, 1% of natural gas production was derived from shale formations and in 2010; it provided 20% of U.S. natural gas production. The rapid growth in usage of this form of natural gas has gathered world’s attention to the potential of shale gas market. Thus it needs to be explored by many industries across the globe.
AMR report shows that the global shale gas market is expected to grow by $104.1 billion by 2020, with a CAGR of 9.3%.
The drivers as per the report-
- The rise for the global market is possibly due to the technological advancement of extracting shale gas through the hydraulic fracturing and horizontal drilling techniques.
Restraints of the market -
- The conventional methods incur a huge extraction cost and large amount of water usage.
"Shale gas, as potent alternative source of natural gas, is expected to shake up the global energy market in the coming years. The availability of large number of shale plays, which is estimated at 6,148 tcf in total, is presenting opportunity for marketer", state AMR analysts Apurva Sale and Guru Mallick. "Technological advancements vis-à-vis the exploration and extraction of shale gas are enabling corporations to gain strategically advantageous positions in the competitive market", add the analysts.
Applications of shale gas-
- Industrial usage
- Power generation
- Commercial utility
Power generation sector is expected to be benefited the most out of all, as shale gas would act as a cost-effective alternative ensuring low cost of electricity.
As per the report, Asia pacific looks to be the most promising region due to its number of shale reserves and advanced extracting technology. European countries would play a back-hand, coping with regulatory difficulties.
Key companies profiled in the report are-
- ExxonMobil & Chesapeake Energy Corporation,
- BHP Billiton Limited,
- Baker Hughes Incorporation,
- Royal Dutch Shell,
- Anadarko Petroleum Corporation
Research Analyst at Allied Market Research
Ranjan has over 4 years of experience in market research and consulting across multiple domains which include technology, FMCG and durable consumer goods, heavy machinery, and automotive. He has hands on expertise in predictive and exploratory research projects for studying regional and global demand potential, market estimation & forecast, perceptions; analyzing macro and micro markets in terms of key gaps and opportunities. Ranjan is part of multiple consulting as well as syndicated report assignments and is actively involved in all the stages of project completion from planning, execution to delivery as per clients satisfaction.
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