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Global Shale Gas Technologies and Markets

Shale gas has the potential to dramatically impact global energy markets. It is assuming an increasingly significant role in global natural gas markets as nations around the world continue to seek lower-carbon fuels while ensuring energy security and economic development. Demand for natural gas is expected to continue to increase and will account for nearly 24% of global energy supplies by 2020. While demand for gas is increasing, supplies from conventional sources are depleting. This dynamic is driving the gas industry to unconventional sources, notably shale.

The confluence of growing demand and breakthrough technological advancements has made investments in shale plays attractive in recent years. Advancements in directional drilling and hydraulic fracturing technologies have enabled the achievement of high rates of gas production from deep, low permeability gas shale formations. These breakthroughs have facilitated access to some of the largest undeveloped gas resources in the world.

These technologies have been widely adopted in North America, resulting in dramatic increases in the production of shale gas. North American gas shales already produce over 9 billion cubic feet per day and are projected to continue to grow rapidly. Shale gas as a percentage of total North American gas production has increased from virtually nothing in 2000 to 13% in 2009; enabling the United States to eclipse Russia as the world’s leading producer of natural gas.

The success of shale gas production in North America, and particularly in the US, has accelerated the exploration of shale gas resources in other regions of the world. In 2009, the International Energy Agency estimated that global recoverable resources of shale gas exceed 6,350 trillion cubic feet (Tcf). In Europe, significant gas shale resources have been identified in Poland, Sweden, and Austria. A number of gas shale basins have also been identified in Australia, China, India, and Southern African nations.

Several factors point to dramatic growth and great expectations for the market for shale gas. However, the exploration and extraction of shale gas resources remains a relatively new and developing field. Certain challenges remain to be overcome and debate continues on the estimates of the scale of recoverable resources, the economics of shale gas production, and the environmental impact of shale gas extraction processes.

Global Shale Gas Technologies and Markets includes a broad review of the global market for shale gas. The report presents the characteristics of currently identified global shale gas resources and key technologies leveraged in the production of shale gas. Environmental considerations and the regulatory landscape are discussed. Additionally, details of major US shale play investments are provided along with discussion of the potential economic impact of shale development and US sub-sector employment trends. Key market participants are profiled. The report provides historic and forecast global shale production 2006 to 2020. Market drivers including global energy demand, gas demand, supply, and price trends and market inhibitors are reviewed in detail.

Report Methodology

The information in Global Shale Gas Technologies and Markets is based on primary and secondary research. Primary research entailed gathering information from firms and individuals involved in development, marketing, distribution and sales of shale and natural gas, utilities, analysts and consultants to the energy industry to obtain insight into the technologies and market factors shaping the industry. Secondary research entailed data gathering from relevant sources, including government and industry publications, company literature, and corporate annual reports.

What You’ll Get in This Report

Global Shale Gas Technologies and Markets contains important insights and projections regarding the future of this market around the world. The report provides both comprehensive data and analysis. Subscribers will benefit from extensive data, presented in easy-to-read and practical charts, tables, and graphs.

Global Shale Gas Technologies and Markets includes a broad review of the global market for natural gas from shale. The report presents the characteristics of currently identified global shale gas resources and key technologies leveraged in the production of shale gas. Environmental considerations and the regulatory landscape are discussed. Additionally, details of major US shale play investments are provided along with discussion of the potential economic impact of shale development and US sub-sector employment trends. Key market participants are profiled. The report provides historic and forecast global shale production 2006 to 2020. Market drivers including global energy demand, gas demand, supply, and price trends and market inhibitors are reviewed in detail.

How You’ll Benefit from This Report

If your company is already doing business in the energy markets, or is considering entering the marketplace, you will find this report invaluable. It provides a comprehensive package of information and insight not offered in any other single source. You will gain a thorough understanding of the current global market for natural gas from shale, as well as projected markets and trends through 2020.

This report will help:

  • Marketing managers understand the forces shaping global energy markets and the market for natural gas from shale and identify market opportunities.
  • Research and development professionals stay on top of competitor initiatives and explore demand for shale gas.
  • Business development executives understand the dynamics of the market and identify possible partnerships.
  • Information and research center librarians provide market researchers, product managers, and other colleagues with the vital information they need to do their jobs more effectively.


Market Insights: A Selection From The Report


Employment in the US Shale Plays

As of July 2010, a total of 1,585 rotary rigs were actively drilling in the United States, 62 percent of which were drilling for gas.29 SBI Energy estimates that two-thirds of these gas rigs were drilling for shale gas, indicating that over 40 percent of total US oil and gas drilling activity was devoted to shale gas at the time. Drilling rig activity is a strong indicator of oil and gas industry employment. Rig counts provide an indication of both current employment levels related to well site preparation and drilling operations and future employment which would be required to subsequently operate producing wells.

Shale Gas Production in the United States

The United States has led the world in developing and producing shale gas. In fact, the first commercial gas well in the US was a shale gas well, drilled in 1821 in Fredonia, New York. Since then, production of gas from shale formations in the US has occurred on a continuous basis, albeit in small volumes. Until recent years, shale gas production in the country had been eclipsed for over a century and a half by the ability to more economically obtain much larger volumes of gas from conventional gas reservoirs. However, as volumes from conventional resources have declined in the United States, and accessing conventional reservoirs has itself become more difficult and costly, technology and the economics of shale gas production have improved.

Growth in Global Energy Consumption
Global energy consumption is expected to increase by 25% from 473 quadrillion Btu in 2005 to over 590 quadrillion Btu in 2020. Global recessionary conditions moderated consumer demand for goods and services and related manufacturing, and global energy consumption concurrently declined by 2.2% in 2009. Since then, the developing non OECD (Organization for Economic Cooperation and Development) nations have led the global recovery. There are also indications that the recession in the US has ended, and while recovery in Europe and Japan has lagged the EIA International Energy Outlook projects that most nations will have recovered from recessionary conditions by 2012, and revert to long-term growth patterns.

In the News

Driven by U.S. Investments, Shale Natural Gas Grows Into an International Energy Market Heavyweight

New York, February 9, 2011 —Shale gas, natural gas produced from shale formations, has the potential to dramatically impact global energy markets, according to Global Shale Gas Technologies and Markets by leading industrial research firm SBI Energy.

“Declining production from depleting conventional gas resources in many parts of the world, combined with rising global demand for energy and natural gas has caused dramatic increases in the price of crude oil and natural gas over the better part of the decade. This has both driven demand for shale gas and improved the economic viability of shale gas developments,” says Shannon Shuflat, SBI Energy analyst and co-author of Global Shale Gas Technologies and Markets alongside Akash Shah.

According to Shuflat and the report, the response to these factors has been an astounding twelve-fold increase in the recorded global production of shale gas from 2000 to 2010. SBI Energy estimates that global shale gas production grew at a compound annual average rate (CAGR) of nearly 50% per year from 1,002 billion cubic feet in 2006 to 5,042 billion cubic feet in 2010.

Presently, the success of shale gas production in North America, and particularly in the United States, has triggered the exploration of shale gas resources around the world. Shale gas exploration is occurring in China, India, Poland, Germany, Spain, France, the United Kingdom, the Netherlands, Australia, Austria, Sweden, Switzerland, Italy, Hungary, Romania, Ukraine, and Argentina, among other nations seeking to lower-carbon fuels while also ensuring energy security and economic development. An earlier start and aggressive action to date indicate China, Poland, and India will likely emerge as the first producers of shale gas outside of North America.

“The confluence of growing natural gas demand and breakthrough technological advancements has made investments in shale plays attractive in recent years. Advancements in horizontal drilling and hydraulic fracturing technologies have enabled the achievement of high rates of gas production from deep, low permeability shale formations. These breakthroughs have facilitated access to some of the largest undeveloped gas resources in the world," says Shah.

Despite the severe global economic recession over the past two years, growth in shale gas production volume has continued unabated. However, the wellhead production value of global shale gas has not kept pace with production volume growth because natural gas prices have declined steeply since the recession hit in the latter half of 2008. Lower realized wellhead prices notwithstanding, the global value of shale gas production grew by nearly 35% per year from $6.4 billion in 2006 to over $21 billion in 2010. The global value of shale gas production is expected to grow by 12% annually to ultimately exceed $37 billion in 2015 and further by 9% annually to more than $56 billion in 2020.

Global Shale Gas Technologies and Markets includes a broad review of the global market for shale gas. The report presents the characteristics of currently identified global shale gas resources and key technologies leveraged in the production of shale gas. Environmental considerations and the regulatory landscape are discussed. Additionally, details of major U.S. shale play investments are provided along with discussion of the potential economic impact of shale development and U.S. sub-sector employment trends. Key market participants are profiled. The report provides historic and forecast global shale production 2006 to 2020. Market drivers including global energy demand, gas demand, supply, and price trends and market inhibitors are reviewed in detail.

About SBI Energy
SBI Energy, a division of MarketResearch.com, publishes research reports in the industrial, energy, building/construction, and automotive/transportation markets. SBI Energy also offers a full range of custom research services.

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  • Executive Summary
    • Report Summary
      • Shale Gas Market Size, Demand Drivers, and Inhibitors
      • Shale Gas Technology and Development
      • Market Participants
        • Table List of Companies Profiled
      • Employment in US Shale Gas
    • Report Scope
    • Report Format
    • Report Methodology
    • Abbreviations and Definitions
      • Table Abbreviations Utilized In Report
  • Shale Gas Technology & Development
    • Overview
    • Geology and Geography of Shale Gas Resources
      • Geology of Shale Gas Resources
      • Chemical Composition of Shale Gas
        • Table Typical Composition of US Shale Gas (Mole %)
        • Table Composition of Shale Gas from US Shale Plays (Percent Mole)
      • Common Characteristics of Economically Viable Shale Gas Resources
      • Geography of Shale Gas Resources
    • Shale Gas Resource Development Process and Technologies
      • Table Shale Gas Development Process
      • Exploration
      • 2-D Reflection Seismology
      • 3-D Seismic Imaging
      • 4-D Seismic Imaging
      • Exploratory Wells
      • Mineral Licensing and Leasing
      • Government-Owned Mineral Rights
      • Privately Owned Mineral Rights
      • Split Estate
      • Mineral Rights Access Has Shaped the US Shale Gas Industry
      • Well Permitting
        • Table Regulatory Agencies in Shale Gas States
      • Well Pad Construction
      • Well Drilling
      • Vertical Drilling
      • Horizontal Drilling
      • Conventional Steerable Motors
      • Rotary Steerable Systems
      • Well Logging
      • Mud Logging
      • Wireline Logging
      • Logging While Drilling
      • Well Casing
      • Well Completion and Stimulation
      • Completion Activities
      • Hydraulic Fracturing
      • Plug and Perf Multi-Stage Fracturing
      • Open Hole Multi-Stage Fracturing
      • Slickwater Fracturing
      • Fracturing Fluid Additives
        • Table Types and Purposes of Hydraulic Fracturing Fluid Additives
      • Foam Fracturing
    • Conclusion
  • Industry Employment
    • Overview
    • US Oil and Gas Industry Employment
      • Oil and Gas Industry Structure
      • Occupations in Upstream Oil and Gas
        • Table US Oil and Gas Extraction Employment by Occupation (in thousands)
        • Table US Oil and Gas Drilling and Support Employment by Occupation (in thousands)
      • Historical Upstream Oil and Gas Employment
      • Projected Upstream Oil and Gas Employment
      • Employment Outlook Presents Industry Challenge
      • Employment in the US Shale Plays
      • Projected US Shale Gas Employment
      • Occupations in Shale Gas Development
        • Table Occupations in Shale Gas Development Process
      • Indirect and Induced Employment Resulting from US Shale Gas Development
  • Market Sizing
    • Overview
    • Historic Global Shale Gas Production
      • Shale Gas Production in the United States
      • Barnett Shale
        • Table Select Characteristics, Barnett Shale
        • Table Top Ten Operators in the Barnett Shale Newark East Field, 2010 (Mcf gas production)
      • Fayetteville Shale
        • Table Select Characteristics, Fayetteville Shale
        • Table Top Ten Operators in the Fayetteville Shale, 2010 (Bcf gas sold)
      • Haynesville Shale
        • Table Select Characteristics, Haynesville Shale
        • Table Top Ten Operators in the Haynesville Shale, 2010 (Number active producing wells)
      • Woodford Shale
        • Table Select Characteristics, Woodford Shale
        • Table Operators in the Woodford Shale, 2010
      • Antrim Shale
        • Table Select Characteristics, Antrim Shale
      • Marcellus Shale
        • Table Select Characteristics, Marcellus Shale
      • Shale Gas Production in Canada
        • Table Canada Estimated Original Gas in Place by Shale Basin (in trillion cubic feet)
        • Table Representative Listing of Companies Active in Shale Gas Exploration in Canada
      • Shale Gas Exploration in Europe
      • Poland
        • Table Representative Listing of Shale Gas Exploration Concessions Awarded in Poland
      • Shale Gas Exploration in Asia
      • India
    • Forecast Global Shale Gas Production
    • Market Demand Drivers
      • Growth in Global Energy Consumption
      • Growth in Global Natural Gas Demand
      • Decline in OECD Conventional Natural Gas Supplies
      • Advances in Shale Gas Technologies
      • Advances in Shale Gas Exploration Technologies
      • Advances in Directional Drilling of Shale Wells
      • Advances in Shale Fracturing Technologies
      • Abundance of Global Shale Gas Resources
    • Market Demand Inhibitors
      • Low Natural Gas Prices Can Impede Shale Growth
      • Environmental Issues and Regulatory Response
      • Water Impacts of Shale Gas Development
      • Risk of Water Contamination From Drilling Operations
      • Risk of Water Contamination From Hydraulic Fracturing Processes
      • Depletion of Local Water Resources
      • Air Quality Impacts of Shale Gas Developments
      • Land Impacts of Shale Gas Development
      • Evolving Regulatory Response
      • Barriers to Entry
  • Participant Profiles
    • Overview
      • Table List of Companies Profiled
      • Exploration and Production Industry Trends
      • Oilfield Services Industry Trends
    • Baker Hughes, Incorporated
      • Table Baker Hughes, Incorporated Profile
      • Corporate Overview
      • Product Portfolio
        • Table Baker Hughes, Incorporated Product Portfolio
      • Performance
    • BP Plc
      • Table BP Profile
      • Corporate Background
      • Product Portfolio
        • Table BP Hydrocarbon Proved Reserves Portfolio (MMboe)
        • Table BP Shale Gas Properties North America
      • Performance
    • Calfrac Well Services, Ltd.
      • Table Calfrac Well Services, Ltd. Profile
      • Corporate Overview
      • Product Portfolio
        • Table Calfrac Well Services, Ltd. Product Portfolio
      • Performance
    • Canyon Services Group, Incorporated
      • Table Canyon Services Group, Incorporated Profile
      • Corporate Overview
      • Product Portfolio
        • Table Canyon Services Group, Inc. Product Portfolio
      • Performance
    • Chesapeake Energy Corporation
      • Table Chesapeake Energy Corporation Profile
      • Corporate Overview
      • Product Portfolio
        • Table Chesapeake Energy Corporation Product Portfolio
        • Table Chesapeake Energy Corporation Product Portfolio by Operating Area
      • Performance
    • Devon Energy Corporation
      • Table Devon Energy Corporation Profile
      • Corporate Overview
      • Product Portfolio
        • Table Devon Energy Corporation Product Portfolio
      • Performance
    • ExxonMobil/XTO Energy, Incorporated
      • Table ExxonMobil/XTO Energy Profile
      • Corporate Overview
      • Product Portfolio
        • Table XTO Energy, Inc. (subsidiary of ExxonMobil) Shale Gas Properties and Reserves (Mcf)
      • Performance
    • Halliburton Company
      • Table Halliburton Company Profile
      • Corporate Overview
      • Product Portfolio
        • Table Halliburton Company Product Portfolio
      • Performance
    • Quicksilver Resources, Incorporated
      • Table Quicksilver Resources, Incorporated Profile
      • Corporate Overview
      • Product Portfolio
        • Table Quicksilver Resources, Incorporated Product Portfolio
        • Table Quicksilver Resources, Incorporated Product Portfolio by Operating Area
      • Performance
    • San Leon Energy Plc
      • Table San Leon Energy Plc Profile
      • Corporate Overview
      • Product Portfolio
        • Table San Leon Energy Plc License Portfolio by Country
    • Schlumberger, Ltd.
      • Table Schlumberger, Ltd. Profile
      • Corporate Overview
      • Product Portfolio
        • Table Schlumberger, Ltd. Product Portfolio
      • Performance
    • Southwestern Energy Company
      • Table Southwestern Energy Company Profile
      • Corporate Overview
      • Product Portfolio
        • Table Southwestern Energy Company Product Portfolio by Operating Area
      • Performance
    • Talisman Energy Incorporated
      • Table Talisman Energy Incorporated Profile
      • Corporate Overview
      • Product Portfolio
        • Table Talisman Energy Net Productive Wells by Operating Area (# wells)
        • Table Talisman Energy Shale Portfolio by Operating Area
      • Performance
    • Trican Well Services, Ltd.
      • Table Trican Well Services, Ltd. Profile
      • Corporate Overview
      • Product Portfolio
        • Table Trican Well Services, Ltd. Product Portfolio
      • Performance
    • Ultra Petroleum Corporation
      • Table Ultra Petroleum Corporation Profile
      • Corporate Overview
      • Product Portfolio
      • Performance

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