According to a research report by Allied Market Research titled, ‘Global Shale Gas Market (Technology, Application and Geography) – Industry Analysis, Trends, Share, Opportunities and Forecast, 2013 – 2020′ the global shale gas market is forecast to reach $104.1 billion by 2020, registering a CAGR of 9.3% during the forecast period (2014 – 2020).
The corresponding volume consumption will reach 19,619.4 bcf in the same year. The advent of hydraulic fracturing and horizontal drilling techniques has nearly doubled the efficiency of shale gas retrieval from plays, revolutionizing the shale gas market. China is a major Asian country to propel the demand aided by insatiable energy needs and increasing dependence on natural gas.
“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“, according to 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.
Though large number of shale gas reserves are available across the world, (North America 1685 tcf, South America 1430 tcf, Europe 470 tcf,Middle East and Africa 1393 tcf, and Asia-Pacific 1170 tcf), exploration and extraction still remains the major challenge in most of the regions due to high extraction cost and large amount water usage in conventional processes.
Other findings include:
As shale plays are available in abundance and almost equally across the regions, production will lower dependence on fossil fuel reserves which are available only in specific region.
More energy independence with shale gas adoption will eventually lead to better economic stability of the country.
Despite the latent commercial potential, the regulatory issues in various regions would impede market growth.
The power generation sector would benefit the most from the adoption of shale gas as it would be a cost-effective alternative that ensures reduced electricity costs.