Hydraulic Fracturing Market Analysis

Hydraulic Fracturing Market Analysis

The hydraulic fracking industry by plug and perforation technology will gain over 12% by 2024. The technique involves pumping down a bridge plug on wireline with perforating guns and are widely used for conventional fields and wells with cemented liners. Easy accessibility across the horizontal wells along with wide adoption for cased hole wells will enhance the industry outlook.

Growing demand from open hole well application is set to drive the revenue growth of sliding sleeves. The technology is used to control or shut off the flow from the reservoir zones using or producing too much water. Furthermore, lower cost and time taken during the fracking when compared with other alternating technologies will enhance the industry outlook.

The horizontal hydraulic fracturing is predicted to grow on account of wide applicability in extraction of unconventional hydrocarbon resources along with growing number of shale development projects across the U.S. As per EIA, in 2016, the horizontal hydraulic fractured wells estimated around 69% of the oil and gas wells drilled in the U.S. High productivity when compared with vertically drilled wells coupled with potential to access surrounding natural gas will augment the industry landscape.

The vertical hydraulic fracturing market share is anticipated to witness a moderate growth during the forecast period. The fracturing is mostly used for simulation purposes, to enhance the output and efficiency of the wells. In addition, requirement of low volume and pressure when compared with horizontal fracking will favor the product adoption.

The crude oil fracking is anticipated to witness moderate growth owing to volatile oil prices along with high operating and capital cost. However, declining production rate of exiting reservoirs along with growing number of mature fields primarily across the Europe including Romania and Russia will complement the industry landscape. The oil and gas operators are exploring unconventional resources to meet the growing energy demand and boost domestic product that will further boost the technology adoption.

The shale gas hydraulic fracturing market is predicted to grow over 14 % up to 2024. Ongoing adoption of clean energy sources along with growing carbon emissions has increased the demand for natural gas as a primary fuel. Surging requirement across the utilities, commercial and residential applications along with high fuel efficiency will enhance the industry outlook.

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The U.S. market is predicted to grow on account of rapid shale development along with ongoing discoveries of new oil & gas fields. Extensive technical capabilities along with robust investments toward R&D by leading OFS companies including Schlumberger, Halliburton and others will augment the business landscape. As per the Energy Information Administration, in 2017, the U.S. holds over 308 trillion cubic feet of proven shale gas resources. Increased domestic production and export capacity along with reduced dependency on Russian gas supplies have further encouraged the adoption of fracking technology.

The European market was valued over USD 3.5 billion in 2015. Ongoing government measures to boost the domestic production along with need to maintain the supply security will foster the business growth. Growing adoption of well stimulation technologies along with increasing need to boost production from existing wells will complement the business landscape. However, stringent environment regulations pertaining the magnitude of environment impact caused by fracking will impact the industry growth.