Canada, US, and China Shale Gas Hydraulic Fracturing Market Outlook – 2021-2027
[229 Pages Report] The shale gas hydraulic fracturing market in Canada, US, and China experienced robust year-on-year (YoY) growth rate during 2021. While the total market volume across these countries totaled 28,866.50 units in 2021, it is projected to increase at 9.2% CAGR between 2021 and 2027, surpassing around 48,814.70 units by the end of 2027.
Canada, US, and China Shale Gas Hydraulic Fracturing Market Estimated Volume (units) in 2021
Canada, US, and China Shale Gas Hydraulic Fracturing Market Volume CAGR (2021-2027)
Canada, US, and China Shale Gas Hydraulic Fracturing Market Projected Volume (units) in 2027
Rising focus on utilizing unconventional energy resources has put shale gas hydraulic fracturing technologies under the spotlight. Hydraulic fracturing has become highly sought-after process for shale production across key regions of the world.
The power generation segment accounted for the dominant 35% share in the Canada, US, and China shale gas hydraulic fracturing market during 2021. Increasing usage of shale gas as an energy efficient and ecofriendly fuel for producing electricity is boosting the market growth.
With around 96% share, the U.S. will continue to dominate the Canada, US, and China shale gas hydraulic fracturing market during the forecast period. The U.S. shale gas hydraulic fracturing market is driven by increasing usage of relatively cheaper resources and heavy presence of leading market players.
2012-2020 Canada, US, and China Shale Gas Hydraulic Fracturing Market Outlook Compared to 2021-2027 Forecast
The Canada, U.S., and China shale gas hydraulic fracturing market volume is projected to increase at a healthy CAGR of 9.2% between 2021 and 2027 in comparison to 7.8% registered from 2012 and 2020.
As per FMI, the market is driven by rapid industrialization, surging demand for shale gas & oil, rising concerns regarding the depletion of natural resources, technological advancement in hydraulic fracturing and rising exploration activities across these regions.
Shale gas hydraulic fracturing is a popular shale gas production process that involves extraction of trapped natural oil or gas by fracturing the shale rock. It involves the high-pressure injection of water, sand and other chemicals into wellbore to create cracks in the deep bedrock formations through which desired (shale gas) product moves freely. The required product is then brought to the surface using various equipment.
Energy consumption across the world has increased in response to the high demand for alternative sources of energy. The demand for shale gas is growing due to its cost efficiency and ecofriendly nature. Extracting shale gas through conventional methods is not feasible due to their lengthy, expensive and non-eco-friendly procedures. As a result, hydraulic fracturing is gaining traction.
Shale gas hydraulic fracturing has emerged as a safe and ideal means of extracting shale gas especially across difficult regions. It allows the oil & gas companies to extract shale gas without much exertion and minimizes the damage to environment.
With surging fuel prices and depleting conventional resources, countries such China and the U.S have shifted their focus towards unconventional resources. Shale oil & gas revolution is thus gaining momentum. This is creating lucrative growth prospects within the Canada, US, and China shale gas hydraulic fracturing market.
Innovations in hydraulic fracturing technology will continue to aid the growth of shale gas hydraulic fracturing market. Leading players are introducing advanced monitoring solutions to enhance the shale gas hydraulic fracturing process. For instance, in July 2021, Halliburton Company launched ExpressFiber, a single-use fiber optic cable which enables direct fracture monitoring service.
Spurred by the aforementioned factors, the market volume for Canada, US, and China shale gas hydraulic fracturing market is set to expand 1.7X through 2027.
How Will Exploration of Unconventional Gas Reserves Across Canada, US, and China Affect Hydraulic Fracturing Market?
Amid growing concerns over depletion of conventional energy resources at an alarming rate, countries are searching for new alternatives. Various investments are being directed towards the exploration of unconventional energy resources. This is anticipated to accelerate the growth of shale gas hydraulic fracturing market during the forecast period.
Shale reservoirs are usually impermeable and require high intervention processes such as hydraulic fracturing to extract oil and gas products.
Hydraulic fracturing has emerged as an ideal technique for the production of shale gas especially across inaccessible areas. It not only saves money and time but also provides optimum safe and ecofriendly features.
Once shale reserve is located, hydraulic fracturing technology is employed to extract maximum quantity of shale gas without any leakage. Combination of hydraulic fracturing and horizontal drilling (Shale Revolution) is gaining wider popularity as a viable means of producing oil and gas particularly from tight or difficult reservoirs.
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Factors Restraining the Growth of Canada, US, and China Shale Gas Hydraulic Fracturing Market?
Despite its effectiveness in extracting oil and gas products, hydraulic fracturing remains a controversial method of shale extraction. Various regions have already banned this technique due to its potential for water table contamination and induced earthquakes.
During the process of hydraulic fracturing, large quantity of water is utilized to crack or fracture the shale rock. As a result, undesirable substances get mixed with this water. Moreover, both production and transportation of shale gas tend to release a heap of toxic pollutants in underground water. This is limiting the growth of the market.
How Has the U.S. Emerged as an Undisputed Leader in Canada, US, and China Shale Gas Hydraulic Fracturing Market?
As per FMI, the U.S. is projected to retain its monopoly in the Canada, US, and China shale gas hydraulic fracturing market, accounting for a massive volume share of 96% in 2021. Growth in the region is driven by continuous technological innovations, rising inclination towards utilizing cheaper and ecofriendly energy resources, increasing oil & gas exploration activities and presence of leading market players.
Currently, the U.S. is one of the most developed countries in the world. Rapid industrialization, rising disposable income, sophisticated lifestyle and economic boom provides impetus for the expansion of shale gas hydraulic fracturing market in the U.S.
Annually, huge amount of shale gas is being produced as well as consumed across the U.S. most of the shale gas is produced through horizontal drilling and hydraulic fracturing techniques. According to the U.S. Energy Information Administration (EIA), dry shale gas production in the U.S. was about 26.3 trillion cubic feet (Tcf) in 2020. Moreover, the total dry shale gas produced in 2020 accounted for around 79% of total U.S. dry natural gas production.
Amid rising consumption of shale gas, the U.S. shale gas hydraulic fracturing market volume is forecast to increase at 8.8% CAGR between 2021 and 2027.
What is the Growth Projection for China Shale Gas Hydraulic Fracturing Market?
The rise of China as a technologically evolving nation has a profound impact on every sphere of life. It is one of the few regions around the world that has a well-established shale gas hydraulic fracturing industry.
As per FMI, China accounts for a volume share of 3% in the Canada, US, and China shale gas hydraulic fracturing market. The China market is driven by increasing investments in oil & gas activities, advancements in hydraulic fracturing technology and surging demand for shale gas across major industries.
Rapidly increasing energy demand across China is compelling the government and other private oil & gas companies to ramp up shale gas production. As hydraulic fracturing is faster and more convenient method for producing shale gas, it is gaining wider traction across the country.
China’s shale gas production has been steadily rising during the past few years. According to the U.S. Energy Information Administration (EIA), despite being in its early phase of development, China’s shale gas production rose by 14% from 2017 levels to about 365 billion cubic feet (Bcf) in 2018.
Rising pollution levels due to conventional fuels is fostering the adoption of natural gas for industrial use, power generation and residential and commercial heating. As per EIA, China’s natural gas consumption rose from 9.9 Tcf in 2018 to 10.8 Tcf in 2019.
One of the major reasons for expanding shale oil hydraulic fracturing market is the favorable government support. The government of China is playing a crucial role in boosting the growth of shale gas hydraulic fracturing market. For instance, China recently introduced financial incentives for producers to promote domestic upstream development of unconventional natural gas. Furthermore, the government reduced the resource tax on shale gas production from 6% to 4.2% (starting from April 2018 to March 2021).
Based on the aforementioned factors, shale gas hydraulic fracturing market volume in China is projected to increase at a prolific CAGR of 18.7% between 2021 and 2027.
How will the Growth Unfold in Canada Shale Gas Hydraulic Fracturing Market?
As per FMI, the Canada shale gas hydraulic fracturing market volume is anticipated to increase at 6.9% CAGR during the forecast period of 2021 and 2027. Increasing demand for natural gas and rising adoption of hydraulic fracturing are some of the factors driving the Canada market.
Shale gas production in Canada has risen significantly over the last 15 years. Canadian government is using various strategies to promote the adoption of shale gas and makes the country pollution free. As per the U.S. Energy Information Administration (EIA), shale gas production in Canada is projected to account for around 30% of Canada’s total natural gas production by 2040.
Which is the Preferred Technology in Canada, US, and China Shale Gas Hydraulic Fracturing Market?
As per FMI’s latest report, plug and perforation segment will continue to dominate the Canada, US, and China gas hydraulic fracturing market over the forecast period. Plug and perforation technology can be used in both horizontal and vertical wells. It remains the most commonly used technology for extracting oil & gas in unconventional wells.
Plug and perforation technology delivers high performance in production. It is more flexible and more reliable. Majority of the oil & gas drilling companies use plug and perforation technology during multistage shale gas hydraulic fracturing.
A robust CAGR has been predicted for plug and perforation segment by FMI through 2027.
Why is Demand for Shale Gas Hydraulic Fracturing Skyrocketing in Power Generation Sector?
Increasing demand for electricity across both residential and industrial sectors is creating huge growth opportunity within Canada, US, and China shale gas hydraulic fracturing market. With increasing fuel prices and growing environmental concerns, there has been a rapid transition from using conventional fuels to non-conventional ones such as natural gas.
Shale gas is being increasing used for generating electricity across power generation plants due to its convivence, ecofriendly nature and comparatively lower costs than other fossil fuels. Rising demand for electricity will continue to spur the market growth during the forecast period.
Power generation segment accounted for around 35% share in the Canada, US, and China shale gas hydraulic fracturing market in 2021.
The Canada, US, and China shale gas hydraulic fracturing market is highly fragmented in nature. Leading market players are constantly upgrading their product portfolios. Besides this, they have adopted various organic and inorganic strategies such as mergers, partnerships, collaborations and acquisitions to dominate the market.
- In January 2021, Liberty Oilfield Services Inc. completed the acquisition of Schlumberger’s onshore hydraulic fracturing business in the United States and Canada (OneStim). The acquisition will expand the hydraulic fracturing portfolio of the company.
- May 10, 2021 Schlumberger and NOV collaborated to accelerate automated drilling solutions adoption by oil and gas operators and drilling contractors.
- In 2019, US oilfield services firms C&J Energy agreed to merge with Keane Group to create a diversfied oilfiled services company.
Scope of the Report
Historical Data Available for
Units for Volume
Key Regions Covered
Canada, China and the U.S.
Key Countries Covered
China, Canada and the U.S.
Key Segments Covered
Technology, Application and Region
Key Companies Profiled
Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives
Customization & Pricing
Available upon Request
Canada, US, and China Shale Gas Hydraulic Fracturing Market by Category
- Plug and perforation
- Sliding sleeve
- Power generation