WELLESLEY, Mass., March 06, 2018 (GLOBE NEWSWIRE) -- Despite a three-year slump in global energy prices, those prices have been climbing, suggesting that there will be growth in fracking fluid-based production, according to a report by BCC Research.
The U.S. market is expected to see a compound annual growth rate (CAGR) of 7.0% through 2022, when the sector could be worth $15.0 billion, according to the report The U.S. Market for Fracking Fluids.
Major players in the market include Anadarko Petroleum, Baker Hughes, Cabot Oil & Gas, Devon Energy, Encana, Fairmount Supply, Halliburton Energy Services, Marathon Oil, Nabors Industries, Oasis Petroleum North America, Reagent Chemical and Research, Sandridge Energy, Trican Well Service, Unimin and Weatherford International.
Research Highlights
- Total revenues for the fracking fluids used in the oil-based reservoirs of the Gulf Coast region exceeded $4.5 billion in 2017 and will reach almost $6.0 billion in 2022.
- Since the publication of the last report, five new states (West Virginia, Vermont, New Hampshire, Massachusetts, and Nevada) now have disclosure rules for fracking fluids. The disclosure rule requirement signals that hydraulic fracturing will likely occur in these states in the coming years.
- Loosening energy policies in the U.S. may spur greater amounts of hydraulic fracturing throughout the U.S., which could support greater growth in the fracking fluid market.
“The greatest external market drivers for fracking fluids include the activities of the well operators and oil services companies, and both not only drive the discovery of new shales, but also influence the type of hydrofracking technology implemented to maximize extraction,” said report author Gordon Nangmenyi. “Other factors that strongly influence demand include the technological progress of water treatment and recycling of fracking fluids, and the establishment of new water supply channels and substitutes for water during the fracking process.”
Limitations on Industry Include Tightening Regulations, Social Activism
Currently, state-level regulatory pressure represents the top compliance force working against the industry, Nangmenyi wrote. Although each state has its own rules and standards regarding fracking, a growing number of states now require fracking companies to report the ingredients used in their fracking fluids. Environmental activism, however, has served as the largest force limited growth of hydraulic fracking.
About BCC Research
BCC Research is a publisher of market research reports that provide organizations with intelligence to drive smart business decisions. By partnering with industry experts worldwide, BCC Research provides unbiased measurements and assessments of global markets covering major industrial and technology sectors, including emerging markets. For more information about BCC Research, please visit bccresearch.com. Follow BCC Research on Twitter at @BCCResearch.