The North American Market for Shale Gas Products & Services is Projected to Reach US$53 Billion by 2020

Production at New & Emerging Shale Plays to Sustain Growth in the North American Shale Gas Market, According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size and demand forecasts on the North American Shale Gas market. The North American market for Shale Gas Products & Services is projected to reach US$53 billion by 2020, driven by the partial recovery in shale gas prices and continued production at new & emerging shale gas plays.

The North American oil and gas industry has seen a sea change, over the last decade, as evidenced by the successful “shale revolution” in the region. Thanks to the early success of Barnett Shale with horizontal wells in 2005, shale gas has become the fastest growing type of natural gas produced in North America. Successful use of advanced gas extraction methods such as hydraulic fracturing and horizontal drilling has helped increase production of shale gas in the region, making it one of the most popular energy resources. This boom in shale gas exploration activity has helped drive robust demand for shale gas products and services in the region.

With commercial exploration activity having seen phenomenal rise over the last decade, spending on shale gas products such as drilling equipment and tools, along with fluids and materials such as proppants, chemicals & gases, and drilling fluids among others, used in shale gas exploration/production activity, has increased at a significant pace. Complexity in gas extraction and need for high level technical expertise have also encouraged shale gas companies to outsource portion of their production activity to third party service providers. This therefore has created a strong business case for a range of shale gas services such as drilling services, pressure pumping, completion & production services among others.

With shale gas industry now going beyond the initial hype cycle and with many of the shale plays that have been actively tapped over the years now entering the maturity phase, growth in shale gas production is now stabilizing from the epic increases seen during mid-2000s. However, partial rise in natural gas prices, including shale gas prices will help sustain demand prospects for shale gas products and services market in the short to medium term period. Also, demand for energy will continue to rise in the region, which will drive the government to invest in multiple energy sources, including unconventional gas resources such as shale for achieving self-sufficiency. Improving economic scenario in the United States and increase in industrial activity are expected to add to the energy demand and subsequently drive shale gas activity in the medium term period.

As stated by the new North American market research report on Shale Gas, the United States represents the largest market. Canada emerges as the fastest growing market, with revenues from the sale of shale gas products & services growing at a CAGR of 5.1% over the analysis period. Shale Gas Services, accounting for a majority of operator spending, represents the largest market segment. Market for Shale Gas Products will be driven by robust demand for drilling equipment and consumables, newer fluids and proppants.

Key players covered in the report include Ashland Inc., Baker Hughes Incorporated, Emerge Energy Services LP, Fairmount Santrol Holdings Inc., FTS International, Halliburton Company, Logan International Inc., Nabors Industries Ltd., National Oilwell Varco, Saint-Gobain S.A, Schlumberger Limited, Schoeller-Bleckmann Oilfield Equipment AG, Superior Energy Services, Inc., Tenaris SA, Unimin Corp., US Silica, and Weatherford International, among others.

The research report titled “Shale Gas: A North American Market Report”, announced by Global Industry Analysts, Inc., provides a comprehensive review of industry trends, growth drivers, market share, market size, product launches, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections for United States and Canadian Markets. Market Segments analyzed for the North American include Shale Gas Products and Shale Gas Services. 

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