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Shale Oil Market

Market Insights on Shale Oil covering sales outlook, demand forecast & up-to-date key trends

Shale Oil Market: North America Industry Analysis and Opportunity Assessment 2022-2032

Shale Oil Market Overview

The shale oil market is estimated to secure an aggressive CAGR of 7.5% during the forecast period. The market is estimated to reach a valuation of US$ 3.24 Bn in 2022 and is likely to be valued at US$ 6.68 Bn by 2032.

Market CAGR (2022-2032)

7.5%

Market Value (2022)

US$ 3.24 Bn

Market Value (2032)

US$ 6.68 Bn

The current market is growing at a moderate pace by registering a healthy CAGR during the foreseen time. The rising consumption of shale oil and growing end-use industries, including the petrochemical sector, are accelerating the demand for shale oil during the forecast period. The growing adoption of shale oil in the petrochemical industry due to producing chemical components and refining the fuel is increasing the shale oil market size.

Moreover, shale oil is a substitute for fuels, including LPG (Liquid Petroleum Gas), diesel, gasoline, and others, which is accelerating the demand for shale oil in recent years. Prominent company manufacturers are increasing the adoption of shale oil to produce several commercial products, such as sulfur and ammonia, during the forecast period.

The growing innovation and rising advanced technology, such as horizontal drilling, is anticipated to make reservoirs for shale oil and is thus increasing the market opportunities. However, the high cost and governments' strict regulation to control the adoption of shale oil as it pollutes the environment is declining the market growth.

In 2019, Reliance Industries invested around INR 700 Billion to set up a crude-to-chemical project in Gujarat. In addition, as an oil-to-chemical strategy, the company integrated petrochemical and petroleum refinery for petrochemical production. The growing investment by large-scale industries is increasing the market size during the forecast period.

North America dominates the global market by securing the maximum share during the forecast period. Rising production of shale oil, growing infrastructure, and the presence of key players are driving the North American shale oil market during the forecast period.

The US dominates the global market by producing 50% of the total market for shale oil during the forecast period. Several developing countries import shale oil from the US due to rising demand for shale oil for several purposes during the forecast period.

The number of prominent players plays a crucial role by contributing the maximum share by achieving their goals during the forecast period. These key players are focusing on petrochemical plants to fulfill the needs of end-user industries during the forecast period. However, these factors are likely to increase the sales of oil shale during the forecast period.

On the other hand, the market players are indulging in several marketing methodologies to uplift the market during the forecast period.

Oil shale contains organic matter which is converted into synthetic oil by pyrolysis and hydrogenation or thermal dissolution. U.S. have the largest proved shale oil reserve followed by Russia. Despite of high production cost and low market price of oil, shale oil market accounted for more than 50% of total oil market in the U.S. in 2015. U.S. is the largest consumer and a major importer of oil.

Presently, around 35% of total US energy demands are fulfilled by petroleum products. In the U.S. from Jan 2016- July 2016, total imports of crude oil have increased significantly. To fulfill its growing energy demand, the U.S. is majorly dependent on Canada and OPEC. Canada’s energy demand have been constant but production has increased to meet US oil consumption.

In Nov 2014, OPEC reduced its oil prices and increased its production to discourage shale oil manufacturers of world, this resulted production freeze among shale producers. This caused a major setback for world shale oil market. This also drastically increased the number of drilled out uncompleted wells (DUCs).

These reasons forced American oil companies to become innovative and efficient. Now, Oil companies are cutting their production cost, deploying efficient oil rigs and increasing their production. Since July 2016, there has been 20% increase in oil rig counts. Oil producers have also increased their exports to India. These trends are declaring the redemption of U.S. shale oil. Shale oil market is expected to gain momentum from mid-2017.

Reserves: U.S. have significant proved shale oil reserves. Since 2010, there have been a regular increase in proved oil reserves. Presently the largest proved recoverable shale formation is the Monterey play in southern California (USA). The next largest recoverable shale oil plays are in Eagle Ford and Bakken.

Green River Formation in Colorado, Wyoming, and Utah, are among the biggest oil shale deposits in the world. But these deposits are not economically recoverable with current technology. In Canada, Bakken (stretches across southern Saskatchewan to Manitoba) and Cardium formation in Alberta are two shale oil plays.

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North America shale oil market: Drivers

Energy requirement for U.S. in increasing and new environmental reforms are limiting the use of coal as an energy source. This has increased energy dependency on petroleum and natural gas. In 2015, there was about 3% rise in energy fulfilled by petroleum based products in USA. Efficient working of shale oil producers and growing world energy demand are major drivers for shale oil market.

Moreover U.S. oil imports are causing cash flow towards Middle East. Government are developing reforms to help shale oil and gas producers within the region. Technological advancements in drilling techniques are increasing the number of recoverable oil reserves.

North America shale oil market: Restraints

OPEC is over supplying the oil market and keeping its price low. OPEC produces oil for about $10 per barrel whereas shale oil costs around $25 a barrel. This has caused many smaller shale oil producers to cut down productions. This has created intense price pressure in the international market.

Nikhil Kaitwade
Nikhil Kaitwade
Principal Consultant
LinkedIn
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North America shale oil market:  Key Players

U.S.

Apache Corporation, Chevron Corporation, ConocoPhillips Co, Continental Resources Inc, Hess Corporation, Koch Industries Inc, Linn Energy, LLC, Marathon Oil Corporation, Murphy Oil Corporation, Newfield Exploration Company, Occidental Petroleum Corporation (Oxy), Pioneer Natural Resources Company, Range Resources Corporation, Shell Oil Company, SM Energy Company, Whiting Petroleum Corporation, WPX Energy, Inc., Denbury Resources Inc, EOG Resources, Devon Energy, ExxonMobil, Chesapeake, Energy, EQT

Canada

Husky Energy Inc., Imperial Oil Limited, Pacific Exploration and Production, Suncor Energy, Canadian Natural Resources Limited, Syncrude, Cenovus 

The report covers exhaustive analysis on

  • Market segments
  • Market dynamics
  • Market size
  • Supply & demand
  • Current trends/issues/challenges
  • Competition & companies involved
  • Technology
  • Value chain
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Regional analysis includes

  • North America (U.S. and Canada)

The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain. The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments. The report also maps the qualitative impact of various factors on the market segments and geographies.

North America shale oil market: Segmentation

Market segmentation based on oil producing major shale play:

  • U.S. of America
  • Bakken
  • Eagle Ford
  • Marcellus
  • Permian
  • Utica
  • Haynesville
  • Niobrara
  • Canada
  • Bakken
  • Alberta

Market segmentation based on method of extraction used:

  • Surface method(Ex-situ or conventional method)
  • Open pit mining
  • Underground mining
  • In-situ method
  • Vertical drilling and retorting
  • Horizontal drilling and retorting

Market segmentation on the based on application industries:

  • Residential sector
  • Commercial sector
  • Industrial sector
  • Transportation sector

Frequently Asked Questions

The market is likely to register a CAGR of 7.5% through 2032.

The market is currently valued at US$ 3.24 Bn in 2022.

The market is likely to grow to a valuation of US$ 6.68 Bn by 2032.

North America is likely to be a leading market during the forecast period.

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Nikhil Kaitwade
Principal Consultant
LinkedIn
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