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Unconventional Gas Market Size, Share, Analysis and Forecast, 2022-2031 | Key Segments, Benefits & Opportunity
Unconventional Gas Market - SnapshotUnconventional gas is produced from coal seams, shale rocks, and rocks with low permeability. Gas produced from these reservoirs has the same properties of gas produced from conventional, i.e. sedimentary reservoirs with high porosity and permeability. Unconventional gas may have high levels of natural gas liquids, low or high levels of carbon dioxide, and high and low levels of sulfur.
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Shale rocks, coal seams, and rocks with low permeability are used in the production of unconventional gas. Generally, the gas created using these reservoirs offer similar properties as that of gas created using traditional sedimentary reservoirs showing high permeability and porosity. Moreover, unconventional gas may offer low or high levels of carbon dioxide & sulfur, and increased levels of natural gas liquids.
Several government bodies including the federal government of the U.S. are growing financial support for unconventional gas exploration activities using different public-private partnerships. Moreover, the Federal Energy Regulatory Commission has permitted approval for a sales of interstate gas in order to support the R&D activities focused on the advanced gas technologies. As a result, there has been increase in the investments on R&D projects, which in turn, is fueling the expansion of the unconventional gas market.
Highly Competitive Market with Dominance of Leading Players
The global unconventional gas market is highly fragmented. Key players operating in the global market are Baker Hughes, a GE company (BHGE), Schlumberger Limited, Royal Dutch Shell plc., Chevron Corporation, ExxonMobil Corporation, Total S.A., Halliburton Inc., Weatherford International Plc., National Oilwell Varco, BP plc., Emerson Automation Solutions, and TechnipFMC plc.
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Asia Pacific Offers Vast Potential for Unconventional Gas Market
North America dominated the global unconventional gas market in 2017. Asia Pacific is another key region of the unconventional gas market. Disposable income of consumers has been increasing at a rapid pace in Asia Pacific. This is driving the GDP of the region. Rise in GDP is boosting the demand for energy in Asia Pacific. China, India, and Indonesia are the prime contributors to the demand for energy.
In terms of production of unconventional gas, China and Australia are the major countries in Asia Pacific. According to the U.S. Energy Information Administration (EIA), China has the largest technically recoverable reserves of shale gas (estimated at 31.57 TCM) in the world. This is 68% higher than the shale gas reserves in the U.S. India is also focusing on the production of unconventional gas. In March 2017, Reliance Industries started commercial production of coalbed methane at its Sohagpur fields in Madhya Pradesh, India.
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Adverse Health Effects
Hydraulic fracturing technology is largely used for the production of unconventional gas. Hydraulic fracturing is a process of injecting chemicals, water, and sand at extremely high pressure into gas wells in order to fracture rocks and release methane gas, The process takes place over two to five days, and requires an average of 5.5 million gallons of fluid. It may be repeated multiple times on the same well over the course of the potential 25 to 40 year lifetime.
Many of these chemicals are toxic and are known to cause adverse health effects. Many of the chemicals used in hydraulic fracturing can cause eye, skin, and respiratory problems, and can also affect the brain, nervous system, and gastrointestinal system. This is expected to hamper the unconventional gas market.
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