Shale Gas Consumption is Estimated to Grow at CAGR 12.6%

A new report published by Allied Market Research, titled, “World Shale Gas Market - Opportunities and Forecasts, 2014 - 2022,” states that the global shale gas would grow at CAGR of 14.4% during 2015 and 2022. In North America, most of the shale gas is consumed in power generation applications which accounted for about 36% in 2015.

Shale gas refers to unconventional natural gas, trapped in the shale formation, which is derived by hydraulic fracturing process. Shale gas is emerging as an ideal energy source, owing to its abundancy, low carbon foot print and comparatively low price than conventional energy source such as natural gas, coal, nuclear and hydro. However, the issue of water scarcity due to hydraulic fracturing technique may hamper its production. Moreover, the unstructured regulatory framework in the European countries may dampen its producers to some extent. The global shale gas consumption is estimated to grow at a CAGR of 12.6%, thereby, fostering the market growth.

In end user segment, power generation and industrial sector jointly accounted for about two-third of the shale gas market in 2015, and is projected to maintain this position throughout the forecast period. The growth of these segments is attributed to preferred use of shale gas for power generation due to its abundant availability and cost effective nature. However, in terms of volume, industrial sector is projected to be the fastest growing segment with a CAGR of 13.3%.     

Key findings of the study:

• The North American shale gas market is expected to maintain its foothold in the market throughout the analysis period registering a CAGR of 12.6%, in terms of revenue.
• In Asia-Pacific shale gas market, power generation accounted for the highest consumption of about 37% in 2015, and it is expected to grow at a CAGR of 45.5%.
• Residential and commercial sector collectively accounted for 34% share in world shale gas market revenue in 2015.
• The European shale gas market revenue for transportation application is projected to grow at a CAGR of 68.5%.
• The U.S. was the largest shale gas producer followed by Canada and China in 2015.

North America is expected to remain the highest revenue-generating region during the forecast period, owing to ample availability of technically recoverable shale reserve and favorable government regulations. However, Europe would exhibit a highest CAGR of 59.5%, in terms of volume, due to presence of shale gas reserves in more than 14 countries and rising demand for natural gas. The growth of Asia-Pacific market is attributed to continuous investment by producers into domestic production, continuous decrease in the cost of shale well drilling, and rising LPG costs.

The global shale gas market is gaining competitive advantage as the key companies are focusing on acquisition to expand their regional presence in the emerging countries and increasing the exploration and extraction of shale gas market. The key companies profiled in this report include, Baker Hughes Incorporation, Anadarko Petroleum Corporation, BHP Billiton Limited, Royal Dutch Shell, ConcoPhillips, ExxonMobil & Chesapeake Energy Corporation. 

For more similar market research report on Energy & Power Industry, visit at:

http://energypower-market.blogspot.com/