Global Shale Gas Processing Equipment Market - Growth Trends and Forecasts (2018 - 2023)
Shale gas processing equipment are used for processing shale gas, before it is transported to the end users. After processing shale gas, it is transported through large inter-state and intra-state pipelines. Shale gas processing equipment includes – compressors & pumps, electrical machinery, heat exchangers, internal combustion engines, and measuring devices. Increasing shale and tight gas production activities, coupled with the growing use of natural gas in power generation, are expected to drive the global market for shale gas processing equipment.
Increasing Shale Gas Exploration and Production - Driving the Shale Gas Processing Equipment Market
Shale gas exploitation is one of the lucrative substitutes for crude oil explorations, to meet energy demand. The development of oil & gas reserves from shale formations requires activities, such as hydraulic fracturing and horizontal drilling, which encourage the use of gas processing equipment. The United States is the leading producer of natural gas and oil from shale, globally. Other countries, such as Canada, China, and Mexico, are also looking to explore their potential shale gas reserves, to meet the energy demand. Countries, such as Australia, India, and Indonesia, are taking tentative steps to explore their potential shale gas & oil reserves, and develop them further. Hence, all the increasing, ongoing exploration activities for shale, with the application of hydraulic fracturing and horizontal drilling technologies, is expected to increase the demand for shale gas processing equipment, during the forecast period.
North America to Dominate the Market Growth
North America dominates the global shale gas processing equipment market. Over the past decade, the United States and Canada have experienced spectacular growth in the production of unconventional fossil fuels, notably, shale gas and tight oil, due to technological innovations, such as horizontal drilling and hydraulic fracturing. In January 2018, the active rotary rig count in the region increased to 1,261 from 1,036 (in January 2017). Besides this, the number of active rigs drilling horizontal wells for shale oil production have more than doubled since 2016, thus, encouraging the growth of the shale gas processing equipment market in the North American region.
US leads the shale gas market
The US dominates the shale gas market in the North American region. The United States has become an attractive market for exploration companies, after the shale revolution. The country leads in the production of natural gas & oil from shale, globally. Barnet Shale and Marcellus shale are among the most important shale gas reserves in the country. In the US, the rotary rig count increased by about 242, since January 2017. Hence, with such rapid growth in shale exploration and production activities in the country, the demand for the shale gas processing equipment market is expected to witness strong growth in the country.
Key Developments in the Market