Dublin, Sept. 01, 2023 (GLOBE NEWSWIRE) -- The "Shale Oil Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)" report has been added to ResearchAndMarkets.com's offering.
The shale oil market is poised for a significant journey, projected to attain a Compound Annual Growth Rate (CAGR) exceeding 5% by the year 2028. Amidst its fragmented nature, key industry players like Exxon Mobil Corporation, Chevron Corp., Royal Dutch Shell PLC, Marathon Oil Corporation, and Occidental Petroleum Corporation wield influence.
However, the market's trajectory was notably affected by the global upheaval induced by the COVID-19 pandemic, leading to operational halts within the sector due to plummeting oil prices.
While factors such as heightened petrochemical consumption and growth in industries dependent on plastics and polymers augur well for the market, concerns surrounding the environmental implications of fracking practices stand as a counterweight to growth expectations during the forecast period.
As technology continues to evolve, particularly with innovations in horizontal drilling techniques, a potential for greater viability of shale oil reservoirs emerges, promising a realm of opportunities for market participants.
Growing Petrochemical Industry to Propel Market Forward
Numerous countries boast substantial shale oil reserves, fostering an opportunity to curtail oil imports and cater to the needs of their burgeoning petrochemical sectors. This dynamic catalyzes the growth of the shale oil industry, incentivizing investments in shale oil production.
Furthermore, while shale oil's share in transportation and power generation has diminished due to cleaner alternatives gaining ground, its pivotal role in the petrochemical realm remains irreplaceable. Petrochemical demand has rebounded significantly post the COVID-19 pandemic, amplified by the economic repercussions of the Russia-Ukraine conflict, which have driven global petrochemical prices upward. As of June 2022, ethylene, a cornerstone petrochemical, commanded a price of 1235 USD/metric tonnes, marking an almost 90% surge since 2020 and a 15% increase since 2017.
The current landscape witnesses several large-scale projects pivoting towards configuring refineries to yield higher chemical volumes instead of the traditional focus on transportation fuels.
In December 2022, Saudi Aramco and TotalEnergies reached the Final Investment Decision (FID) milestone to advance a petrochemical complex linked to the existing 440 thousand barrel/day capacity Jubail refinery in Satorp. Collectively, they will infuse about USD 11 billion, with Aramco contributing 62.5% and TotalEnergies 37.5%.
The petrochemical industry is poised for significant expansion during the forecast period, driven by heightened utilization of petrochemical products, innovative processes like direct crude cracking, and escalating investments in the sector. As the petrochemical industry flourishes, shale oil consumption is predicted to rise, further invigorating the shale oil market's growth.
North America's Ascendance in the Market
The United States, the world's leading shale gas producer, has demonstrated resilience even in the face of the COVID-19 pandemic, which compelled fracking operations to temporarily cease due to plummeting hydrocarbon demand.
The United States boasts globally competitive fracking costs, a magnet for investors seeking to participate in the sector, thus fueling its growth trajectory. According to the United States EIA, nearly 95% of all drilled wells in the nation undergo fracking.
As of November 2022, the Wolfcamp shale in the Permian Basin spanning Texas and New Mexico clinched the title of the country's most prolific shale oil producing play, contributing nearly 33% of total U.S. shale oil production. Meanwhile, the Spraberry shale in the same basin held second place, accounting for approximately 18% of the nation's shale oil output.
With massive shale reserves dispersed across key regions such as Permian Basin, Eagle Ford, Marcellus, Niobrara, Barnett, Haynesville, Bakken, and Anadarko-Woodford, the United States dominates the shale landscape. The Permian Shale play in West Texas stands out as one of the world's largest shale plays, underscored by its minimal shale development costs.
Canada also commands notable shale reserves, notably in the Monterney-Duvernay shale plays within Alberta. Its geographical proximity to the United States facilitated the utilization of local technical expertise to kickstart domestic shale development.
As a consequence, North America's dominance is foreseen, given its robust shale production output and increasing sectoral investments.
A selection of companies mentioned in this report includes
- Exxon Mobil Corporation
- Chevron Corporation
- ConocoPhillips Company
- Royal Dutch Shell PLC
- Continental Resources Inc.
- Murphy Oil Corporation
- Occidental Petroleum Corporation
- Marathon Oil Corporation
- Schlumberger Limited
- Halliburton Company
Key Topics Covered:
1 INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET OVERVIEW
4.1 Introduction
4.2 Shale Oil Production and Forecast, in million barrels per day, till 2027
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.2 Restraints
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
5 MARKET SEGMENTATION
5.1 Geography
5.1.1 North America
5.1.2 South America
5.1.3 Europe
5.1.4 Asia-Pacific
5.1.5 Middle-East and Africa
6 COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
For more information about this report visit https://www.researchandmarkets.com/r/l9p6w4
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