Hydraulic fracturing, commonly known as fracking, is a technique used in the oil and gas industry to extract natural gas and oil from deep underground rock formations. It involves injecting a high-pressure fluid mixture into the wellbore, creating fractures in the rock, and allowing the trapped hydrocarbons to flow more freely. The process of hydraulic fracturing typically involves the following steps are Well Drilling, Well Casing, Fracture Fluid Injection, Fracture Propagation, and Flowback and Production. It has stimulated economic growth in regions with significant shale deposits. It has created jobs, increased tax revenues, and boosted local economies.
The global demand for energy, particularly oil and natural gas, continues to rise as populations grow and economies expand. Hydraulic fracturing has allowed access to previously uneconomical reserves, contributing to meeting the growing energy demand. Further, the development of hydraulic fracturing techniques, combined with horizontal drilling, has unlocked vast reserves of shale gas. This has transformed the energy landscape by providing a significant new source of natural gas. The availability of abundant and relatively low-cost natural gas has influenced market dynamics and energy policies. Moreover, hydraulic fracturing has provided countries with an opportunity to enhance their energy security and reduce dependence on imported oil and gas continues to improve the market of hydraulic fracturing in upcoming years.
The Global Hydraulic Fracturing Market has reached a value of $44.4 billion in 2022. This market is projected to grow from $47.97 billion in 2023 to $76.3 billion in 2030 with a CAGR of 8.05% in the forecast period 2023-2030. This market is estimated based on different key pointers that attribute to the growth which are technology such as Plug& Perf, Sliding Sleeve, well types including Horizontal Well, Vertical Well, applications including Shale Gas, Tight Oil, Tight Gas, and fluid types such as Slick Water-based Fluid, Foam-based Fluid, Gelled Oil-based Fluid, Other Base Fluids. Leading companies such as Schlumberger Limited, Basic Energy Services, Calfrac Well Services LTd, Baker Hughes Co., NexTier Oilfield Solutions Inc., Halliburton, Trican Well Service, Nine Energy Services, FTS International, and Liberty Oilfield.
The shale gas segment is a major driver of the hydraulic fracturing market. The development of hydraulic fracturing techniques has been instrumental in unlocking vast reserves of shale gas, making it commercially viable to extract and contributing to the growth of the industry. Shale gas around the world holds substantial reserves of natural gas and compared to other fossil fuels like coal, it has a lower carbon footprint and emits fewer greenhouse gases during combustion. As countries and industries seek to transition to cleaner energy sources, shale gas has gained prominence as a transitional fuel that can help reduce emissions, which leads to an increase in the market growth of hydraulic fracturing in the coming years.
North America, particularly the United States, has been a key driver and holds the largest share of the hydraulic fracturing market. The development of hydraulic fracturing techniques, combined with horizontal drilling, has revolutionized the extraction of unconventional resources, such as shale gas and tight oil, in North America. Further, the geology in North America, especially in regions like the United States and Canada, is well-suited for hydraulic fracturing. The presence of thick, organic-rich shale formations with high hydrocarbon content has made it commercially viable to extract natural gas and oil through fracking. For instance, in January 2022, a researcher at Texas A&M University introduced a novel approach using 3D printing technology to simulate the process of hydraulic fracturing, or fracking, for oil and natural gas extraction. The US Energy Information Administration (EIA) forecasts a 27% growth in shale oil production in the United States by 2050, with the potential for further expansion through the drilling of additional wells nationwide. Moreover, all these developments, expansions, and geographical advantages increase the market share of hydraulic fracturing in North America in the coming year as expected.
The growing economic advantages associated with hydraulic fracturing have been significant. The extraction of shale gas and tight oil has stimulated economic growth, created jobs, and generated tax revenues in regions with substantial shale deposits. This has had positive ripple effects on local economies and industries such as manufacturing and petrochemicals. Hence, it recommended that the companies should prioritize safety measures, well integrity, and appropriate disposal of fluids to mitigate potential risks and ensure the protection of human health and the environment. Further, diversify investments by exploring opportunities in renewable energy sources and technologies. This can help companies transition towards a more sustainable energy portfolio while leveraging their expertise and resources in the energy sector, which contributes to enhanced growth of the hydraulic fracturing market in the coming years as predicted in the forecast period.