Despite current difficulties caused by low crude and natural gas prices, some analysts believe that global shale gas market is set to grow exponentially within the next four years. According to a recent report from Allied Market Research, global shale industry is to reach $104.1 billion by 2020, registering a CAGR of 9.3 percent during the forecast period (2014 – 2020). The predictions are almost identical to those made by Zion Research back in January, when they predicted a growth resulting in USD 105 billion in 2020, again, growing at a CAGR of around 9 percent between 2015 and 2020.
“Shale gas, as a 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 marketers”, 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.
Shale gas, an emerging concept presently popular only in few regions and industries has the potential to impact global energy industry significantly. The increasing popularity of shale gas in various industries has advocated a growing awareness regarding the benefits of shale gas as an energy resource. This added to the significant number of shale reserves all over the globe combined with the competitive price of shale gas are factors which are likely to contribute to the growth of the shale gas market in near future.
The report acknowledges that so far shale gas has been commercialized only in developed regions such as North America (USA and Canada with Mexico yet to start its exploration of unconventionals). However, as the rising production of shale gas in the North America is impacting the global production, the report argues that Asia-Pacific and Europe have tremendous potential to grow as a significant number of reserves are untapped in these countries. What’s more, emerging markets such as China, Algeria and Indonesia provide substantial opportunities for the production of shale gas as there is an abundance of shale reserves in these regions.
In terms of volume, the global shale gas market stood at around 10.0 trillion cubic feet in 2014. As the report makes clear, with global shale reserves estimated at a volume size of 6148 tcf there is certainly room for expansion.
To view the complete report, visit this website.
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