Natural gas from shale (shale gas) is the fastest growing source of gas in the United States and Canada.
In the United States, shale gas production increased at an annual rate of 48% in recent years (2006-2010). In 2010, 23% of all gas produced in the United Stated originated from shale deposits.
Industry analysts project that the growing trend in shale gas production is very likely to continue and by 2020 shale gas production may even reach 12.6 Tcf per annum.
The significant resources of shale gas and the increasing production in North America will allow the United States and Canada to feed their nationwide hunger for natural gas.
Rapidly developing shale gas production will require additional processing capacity. Gas processing is necessary to transform raw gas into a pipeline quality product that can be transported to marketers and end-users. An extra layer of infrastructure is required to treat and transport natural gas liquids in addition to dry gas.
Inadequate processing equipment could lead to price instability, a slow-down of economic growth and a reduction in the delivery of natural gas to end-users.
Shale gas producers and midstream operators have recognized this opportunity and several gas processing facilities have mushroomed in shale plays areas. Numerous new projects have been announced for the upcoming years. But the potential for shale gas processing equipment and the components market is much greater.
To keep up with the growing shale gas production, over 10 billion cubic feet per day (Bcf/d) of additional processing capacity is necessary by 2015 in the shale plays regions. The estimated capital cost for investments in gas processing infrastructure is about $8.5 billion in 2010 dollars.
By 2020, gas processing capacity requirements will increase to over 18 Bcf/d. In total, the industry investments in gas processing facilities are estimated at $14.7 billion in 2010 dollars for the 2011- 2020 period. A significant percentage of that sum will be invested directly in gas processing equipment and components.
This Report contains comprehensive data on the gas processing equipment and components market including historical data (2006-2010) and 2011-2020 forecast for the market size in terms of dollars invested in new infrastructure and in gas processing equipment alone. The study identifies the key trends affecting the marketplace, while profiling major manufacturers and product end-users (gas processing operators).
The information in Shale Processing Equipment and Components Manufacturing Market Worldwide is based on primary and secondary research.
The primary research involved collecting information from companies participating in the market and analysts for the natural gas industry to recognize to main factors influencing the market, its major challenges and opportunities. It also included consultations with gas technology specialists to get insight in the latest advancements in natural gas processing
The secondary research consisted of gathering data from government and industry publications, trade associations, business journals, company websites, annual corporate reports and other relevant sources. The primary sources were the U.S. Energy Information Administration, the U.S. Geological Survey, the Gas Processors Association, the Gas Technology Institute and the Interstate Natural Gas Association of America.
What You’’ll Get in this Report
Global Shale Processing Equipment and Components Manufacturing Market provides a comprehensive overview on the past, current and prospectus markets for natural gas processing equipment and components in the main active shale plays in the United States and Canada. The prospectus for industry developments outside North America are also outlined and discussed.
The Report presents the main characteristics of raw gas shale composition and processing requirements. The main steps of shale gas processing are detailed along with the equipment involved in the process.
The industry expenditures on gas processing equipment in shale plays for the period 2006-2010 are provided along with 2011-2020 forecast for investments in the relevant infrastructure.
The main active shale plays are characterized in terms of shale gas reserves, current production and processing capacities along with the main gas processing operators in the region. The Report provided information on the recent investments in gas processing infrastructure for each shale play region and all anticipated projects.
The Report includes a discussion on the main trends shaping the market, based on the most recent available information and data.
A wide range of the market participants are profiled. The main companies investing in gas processing infrastructure in shale regions are also reported, with their recent and planned investments.
How You’ll Benefit from this Report
If you are a gas processing equipment manufacturer, the study will help you to assess your position versus other market participants. It will provide you with up-to-date information on your competitors’ business structure, product portfolio and clients, offering you invaluable aid in preparing an effective business strategy.
If you are a gas processing operator, the report will provide you with comprehensive information on equipment and components providers and will help you choose the suppliers best-suited to your business needs.
If you are examining investment opportunities in gas processing equipment and components market, the report will offer you a complete outlook on the current market size, diversification and main trends, based on the contemporary data. It will enhance your decision-making capabilities and help you identify the best investment prospectus.
This report will also help:
With world demand continuing to rise for natural gas, investments in infrastructure are growing for the shale gas industry, which is expected to reach 12.6TcF (Trillion Cubic Feet) by 2020, tripling its current output. According to a report by energy research publisher SBI Energy, shale gas production in the U.S. increased at an annual rate of 48% from 2006-2010, reaching 4.8Tcf and representing 23% of the total U.S. natural gas production.
After several prudent years due to uncertainty regarding reserve estimates and production-related risks, shale gas processing assets are now regarded as an attractive form of investment. An increase in gas and natural gas liquid products from these shale plays over recent years has led to billions of dollars worth of investments in gas processing infrastructure.
"Investments in shale gas from the midstream sector reached over $7.7 billion in shale gas processing infrastructure, including $3.8 billion plus spent on equipment and components alone in 2010," noted Shelly Carr, Publisher of SBI Energy. "This market is being driven by a growing demand for natural gas."
The current market for shale gas processing equipment and components is limited to the North American continent, specifically in the United States and Canada. While the U.S. market has grown exponentially over the past five years, production increases are also occurring in Canada, where unconventional gas accounted for 25% of the country's natural gas production in 2010.
"Since technological advancements have made shale gas production economically viable, all major natural gas producers in North America have turned their attention to shale plays," added Carr.
This report contains comprehensive data on the gas processing equipment and components market, as well as segment forecasts through 2020. It also analyzes key trends and profiles major manufacturers and product end-users.