Tight Gas Market Share, Size & Trend Report

Tight Gas Market Share, Size & Trend Analysis Report By Application (Industrial, Power Generation, Residential, Commercial, Transportation) And Segment Forecasts, to 2020

  • Published Date: Mar, 2015
  • Base Year for Estimate: 2014
  • Report ID: 978-1-68038-024-8
  • Format: Electronic (PDF)
  • Historical Data: 2012-2014
  • Number of Pages: 70

Industry Insights

Global tight gas market size is anticipated to reach USD 59.40 billion by 2020, growing at a CAGR of 3.6% from 2014 to 2020. It was the leading unconventional resource contributing to the growing global demand for natural gas, until recent years, when shale gas emerged as a feasible alternative.

High capital costs coupled with varying reservoir characteristics are anticipated to increase the implications in recovery process. Such risks can be mitigated by commissioning simulation and modeling to predict fluid flow mechanisms. Fracing, acidation and deliquifaction are additional methods which can be utilized according to the reservoir characteristics.

U.S. tight gas market

Increase in oil prices across the world has led to move onto an alternative source of energy. This change in focus towards unconventional gases is projected to drive the market over predictable period. However stringent government regulation regarding shale gas exploration is likely to propel the tight gas market over the forecast period

Seismic data analysis and production simulation can be implemented to study and predict the challenges associated with new technologies. This provides an opportunity for monetization of R&D projects in developing a sustainable and cost efficient process of recovery from reservoirs.

Tight gas formations are compact and less permeable which require hydraulic fracturing or gas based recovery methods. Alternative recovery methods also need to be investigated for economic recovery from the reservoirs. Use of horizontal and under-balanced drilling technologies is expected to bolster the production on a large scale

Application Insights

Natural gas has gained high position as an economic and eco-friendly supply for power and energy sector. Associated environmental and economic regulations have favored the natural gas powered plants. Owing to its low prices and stringent regulations against coal-fired plants, natural gas production sector is expected to witness growth in the forecast period.

Power generation industry accounts for over 30% share by volume in 2013. Favorable government initiatives coupled with increased demand for cleaner energy fuel have steered forward the exploration and recovery projects.

Global tight gas market

Global industrial demand has witnessed a similar growth at a CAGR of 3.8% during 2012 to 2020 but is expected to witness a decline in Canada during the forecast period.  Discovery of reserves in Poland, Austria and Slovakia, has huge resource potential to be exploited and meet the increasing industrial demand in Europe.

Regional Insights

U.S. continues its dominated the market, accounting for over 50% of the global forecast. Tight oil production in Eagle Ford and Bakken shale regions have witnessed a breakthrough in new production technologies and commissioning of new projects. In addition, increasing drilling activities in Argentina and Oman have boosted the global production pace.

Global and integrated oil and gas players such as Total and Shell have been actively involved in exploration and production of tight gas in some of the reservoirs present in North America, Russia and China. With a target of ramping up tight gas and Coalbed Methane production, the Chinese government has been keenly investing in infrastructure building, which is expected to be critical for tight gas market development over the next some years. In addition, increasing drilling activities in Argentina and Oman have been supporting the global production rate of tight gas

Canada market was valued at USD 9.26 billion in 2013 but is anticipated to witness a decline in the next seven years. Owing to increased population and substantial developments in power and energy sector, Asia Pacific is expected to be the fastest growing market at a CAGR of 13.6%.

Owing to possession of significant number of reserves, China is anticipated to witness large scale commercialization of recovery projects. Discovery of huge gas reservoirs located in North America, Russia and China is anticipated to bolster the onset of exploration and production projects

Tight Gas Market Share Insights

British petroleum, Royal Dutch Shell, Exxon Mobil and Chesapeake Energy dominated the global tight gas market share, accounting for over 60% of the total volume in 2013. Shell has acquired production operations in North America and increased its production volume in unconventional plays.

Strong regulations and standards in design, construction and operation of production facilities is expected to pose hindrance for new entrants. Companies  have  been targeting ‘hybrid models’ in order to venture into unconventional hydrocarbon reserves for simultaneous E&P in shale, coal bed methane (CBM) and tight reserves.

In February 2013, Chevron acquired Beach Energy and expanded its onshore gas blocks located in the Cooper Basin in Australia. In March 2010, Shell and PetroChina purchased 100% shares of Arrow Energy intended for expansion of natural gas production and distribution activities.

Other industry players include Total SA, Sinopec, PetroChina and Anadarko Petroleum Co., Marathon Oil, Pioneer Natural Resources, Devon Energy and EOG Resources. Many other companies are integrated in the value chain that provide services ranging from simulation and designing to supplying of drilling equipments to the gas reservoirs.

Report Scope

Attribute

Details

Base year for estimation

2014

Actual estimates/Historical data

2014 - 2024

Forecast period

2012 - 2020

Market representation                                    

Revenue in USD Million & CAGR from 2016 to 2020

Regional scope

North America, Europe, Asia Pacific, RoW

Country scope

U.S., Canada, Russia, China

Report coverage        

Revenue forecast, company share, competitive landscape, growth factors and trends

15% free customization scope (equivalent to 5 analysts working days)

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Segments covered in the report

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the latest trends in each of the sub-segments from 2012 to 2020. For the purpose of this study, Grand View Research has segmented the Tight Gas market on the basis of application and region:

  • Application Outlook (Revenue, USD Million, 2012 - 2020)

    • Residential

    • Commercial

    • Industrial

    • Power Generation

    • Transportation

  • Regional Outlook (Revenue, USD Million, 2012 - 2020)

    • North America

      • U.S.

      •    Canada 
    • Europe

      •  Russia

    • Asia Pacific

      •  China

    • RoW

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