LONDON--(BUSINESS WIRE)--Technavio market research analysts forecast the global fracking fluid and chemicals market to grow at a CAGR of close to 10% during the forecast period, according to their latest report.
The market study covers the present scenario and growth prospects of the global fracking fluid and chemicals market for 2017-2021. The report also segments the type of fluid into water based, foam based, and oil-gel based fluids. The water-based fluids accounted for 66% of the market share in 2016.
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Technavio chemicals and materials analysts highlight the following three market drivers that are contributing to the growth of the global fracking fluid and chemicals market:
- Shift toward horizontal drilling
- Increased consumption of oil and gas
- Growth of shale and gas market
Shift toward horizontal drilling
The exploration of oil and gas in the Americas, especially in the US and Canada is on the rise. Therefore, the region held the largest share in the fracking fluid and chemicals market. Horizontal drilling provides a mechanism to recover the unconventional shale reserves using hydraulic fracturing technique. Horizontal drilling needs more fracking chemicals and fluids than vertical drilling as it covers more surface area.
“The global fracking fluid and chemicals market is expected to grow significantly due to the increased acceptance of advanced drilling technologies such as horizontal drilling for recovering oil and gas,” says Mahitha Mallishetty, a lead analyst at Technavio for specialty chemicals research.
Increased consumption of oil and gas
The increasing consumption of oil and gas will increase the need for fracking fluids and chemicals. Economic growth and the associated structural changes strongly influence the global energy consumption. Developing countries such as India, China, and Brazil are projected to have higher GDP in the upcoming years. This will increase the per capita income and energy demand in these countries.
In 2016, the global consumption of oil was around 95 million barrels per day. In 2015, the automobile industry witnessed a significant growth and globally about 90 million cars were sold, thereby increasing the demand for oil and gas. China and India accounted for around 55% of the global oil consumption in 2015.
Growth of shale and gas market
The market for oil and shale gas in the Americas is growing significantly due to the large-scale participation of global and regional vendors in the US.
“Many market vendors are investing in shale oil and gas fields to increase the production and meet the growth in the global demand. This will lead to a proportional increase in the demand for fracking fluids and chemicals,” says Mahitha.
Natural gas production from shale gas and tight oil now accounts up to about half of the US dry natural gas production in 2015. The production from shale gas and tight oil in the US is anticipated to grow from 14 trillion cubic feet in 2015 to 29 trillion cubic feet in 2040, making up 69% of the 2040 total dry natural gas production.
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