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The hydraulic fracturing market is expected to register a CAGR of greater than 8.55% during the forecast period of 2021 – 2026 and reach USD 61.45 billion, in 2026 up from USD 35.46 billion in 2019. The COVID-19 pandemic has severely affected the shale oil and gas market, which is among the largest sector where the different techniques of hydraulic fracturing are used. Many of the riskier assets are expected to be delayed or abandoned, as the consumption of oil and gas is expected to take time to recover to their original levels. Factors, such as technological advancements with the introduction of better techniques, are likely to drive the hydraulic fracturing market during the forecast period. However, the volatility in crude oil prices is expected to restrain the growth of the hydraulic fracturing market in the coming years.
- The foam-based segment is expected to witness significant growth due to its increasing usage and rising demand in global oil and gas operations.
- The advancement in hydraulic fracturing techniques and the increasing viability of vertical integration are expected to act as an opportunity for the market.
- North America being among the largest producers of oil and gas, coupled with a significant number of oil and gas upstream projects that require hydraulic fracturing, is expected to dominate the market during the forecast period.
Scope of the Report
The hydraulic fracturing market report includes:
|Slick Water-based Fluid|
|Gelled Oil-based Fluid|
|Other Base Fluids|
|Middle-East and Africa|
Key Market Trends
Foam-Based Fluid Segment to Witness Significant Growth
- For water-sensitive formations and environments where water is scarce, foams have long been considered one of the best fracturing fluids. In particular, foams are believed to be an appropriate means for fracturing shale gas reservoirs.
- Foam-based fluids require lower (or no) water consumption and cause less damage in water-sensitive formations, and there is less liquid to recover and handle after the fracturing process. Many environmentalists, especially in the United States, have argued for cleaner methods of fracturing, which is possible through the use of foam-based fracturing. Further advancement in this technology may aid the growth of the market while also preventing environmental damage.
- Additionally, foam-based fluid has also found niche application in coalbed fracturing in Canada on dry coalbeds, where any water introduced into the formation damages the cleats.
- Although this technique has been tested in a few shale plays worldwide, most studies have been performed in the United States and Canada. Therefore, the foam fracturing technique is still comparatively novel for other countries around the world.
- The most common application for high-quality foams is in water-sensitive gas-bearing formations, typically an under-saturated gas reservoir, where water blockage is a major concern. Foams are beneficial when used for liquids-rich gas wells, such as in the Alberta Deep Basin, and work in certain oil-bearing formations, such as the Cardium. Lastly, in areas where water is in short supply or hard to source, foams can present a very obvious advantage.
- Therefore, the increasing demand for foam-based fluids is expected to drive the market during the forecast period.
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North America to Dominate the Market
- North America is one of the major producers of crude oil and natural gas globally. The hydraulic fracturing market is expected to be driven forward by new well drilling and by the expanding producing well base.
- In the United States, the hydraulic fracturing market is primarily driven by increased drilling activities, new offshore projects, and redevelopment of matured fields. The production from Marcellus/Utica shale and new oil wells is expected to account for most of the growth in gas production.
- The biggest increase in activity is expected from Canada’s main crude oil and gas producing region, Alberta, in the coming years. Consequently, the hydraulic fracturing market is estimated to grow at a moderate pace in Canada.
- In January 2021, Reliance Industries Ltd agreed to sell its entire stake in certain upstream assets in the Marcellus shale gas asset in south-western Pennsylvania in the United States for USD 250 million amid weakness in the global hydrocarbon market. The assets, controlled by RIL’s wholly-owned unit Reliance Marcellus LLC and operated by affiliates of EQT Corporation, a United States-based energy company engaged in hydrocarbon exploration and pipeline transport, are to be sold to Northern Oil and Gas (NOG) Inc. The shock caused by COVID-19 has caused many smaller investors in the shale region to delay or abandon the projects in the industry.
- The shale oil production in the United States increased, by 13.87%, from 7.956 million barrels per day (mbpd) in 2019 to 6.986 mbpd in 2018. The shale oil production may increase further due to new wells being drilled across the country.
- Hence, North America is expected to dominate the market due to the overwhelming production of shale on the continent and further increase in the investment in the sector.
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The hydraulic fracturing market is moderately fragmented. Some of the major companies include Schlumberger Limited, Baker Hughes Co., Basic Energy Services, NexTier Oilfield Solutions Inc., and Calfrac Well Services Ltd.
- North Dakota voted to repurpose USD 221 million in federal coronavirus aid to various state agencies, including a USD 16-million grant to oil companies in support of the fracking process. The aid comes from the USD 1.25 billion awarded to the state through the Coronavirus Relief Fund established by the federal CARES Act.
- In January 2021, the United States Environmental Protection Agency (EPA) told the Texas Commission on Environmental Quality week that the state could take charge of the federal government’s responsibilities to regulate discharging produced water if the water met certain toxicity standards. This is expected to push for cleaner hydraulic fracturing methods.
- Fracking activity in Vaca Muerta shot up by more than 55% month on month in November 2020. The number of frac stages in the play rose to 545 in November 2020 from 345 in October 2020. These numbers are similar to November 2019, which is an indication that the shale production might get back to the pre-covid levels.
Table of Contents
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Recent Trends and Developments
4.2 Government Policies and Regulations
4.3 Market Size and Demand Forecast, in USD billion, till 2026
4.4 Market Dynamics
4.5 Supply Chain Analysis
4.6 Porter's Five Forces Analysis
4.6.1 Bargaining Power of Suppliers
4.6.2 Bargaining Power of Consumers
4.6.3 Threat of New Entrants
4.6.4 Threat of Substitutes Products and Services
4.6.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Well Type
5.2 Fluid Type
5.2.1 Slick Water-based Fluid
5.2.2 Foam-based Fluid
5.2.3 Gelled Oil-based Fluid
5.2.4 Other Base Fluids
5.3.1 North America
5.3.4 South America
5.3.5 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Archer Well Company Inc.
6.3.2 Baker Hughes a GE Co.
6.3.3 Basic Energy Services
6.3.4 Calfrac Well Services Ltd
6.3.5 FTS International Services
6.3.6 Halliburton Company
6.3.7 NexTier Oilfield Solutions Inc.
6.3.8 Patterson (Seventy Seven)
6.3.9 RPC Inc. (Cudd Pumping)
6.3.10 Schlumberger Limited
6.3.11 Liberty Oilfield Services
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Hydraulic Fracturing Market market is studied from 2018 - 2026.
What is the growth rate of Hydraulic Fracturing Market?
The Hydraulic Fracturing Market is growing at a CAGR of >8.55% over the next 5 years.
What is Hydraulic Fracturing Market size in 2018?
The Hydraulic Fracturing Market is valued at 35 Billion USD in 2018.
What is Hydraulic Fracturing Market size in 2026?
The Hydraulic Fracturing Market is valued at 61 Billion USD in 2026.
Which region has highest growth rate in Hydraulic Fracturing Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Hydraulic Fracturing Market?
North America holds highest share in 2020.
Who are the key players in Hydraulic Fracturing Market?
- Schlumberger Limited
- Basic Energy Services
- Calfrac Well Services Ltd
- Baker Hughes Co.
- NexTier Oilfield Solutions Inc.
Are the major companies operating in Hydraulic Fracturing Market.