Hydraulic Fracturing Market (By Technology: Sliding Sleeve, Plug and Perf; By Material: Proppant, Others; By Application: Tight oil, Shale Gas, CBM, Tight Gas, Others) - Global Industry Size, Share, Trends and Forecast 2019 - 2026

According to Acumen Research and Consulting, the global hydraulic fracturing market size is anticipated to hit around US$ 83 billion by 2026 and growing at a CAGR of 11.8% over the forecast time period 2019 to 2026.

Hydraulic fracturing is a well-stimulated technique that allows the flux of hydrocarbon to the surface to create fractures in rock formations. Fractures consist of pumping big quantities of fluid at elevated stress, including proppants such as ceramic pallets, sand, water and chemical additives that extend fractures in rock formation. The technology's risks and potential risks include noise and air pollution, earthquakes, water overuse and contamination, fracking in various countries are prohibited.

The report provides analysis of global hydraulic fracturing market for the period 2018-2026, wherein 2019 to 2026 is the forecast period and 2018 is considered as the base year. 

Market Insights

Growing E&P in unconventional oil & gas reserves in shale basins, in particular, is expected to remain a major driver of market growth. The increased demand for primary energy in electricity generation, transportation and household activity in major economies worldwide has led to increased oil and gas consumption. Worldwide leading oil and gas producers have experienced a decrease in manufacturing due to the depletion of standard resources. The decreasing production levels of petroleum are expected to widen the demand gap. Unconventional reserves of hydrocarbon extraction have multiplied by horizontal boiling combined with hydraulic fracturing techniques. The government of the United States and China announced various measures including financial aid, FDI provision and hydrocarbon tax incentives which will support business growth. However, the development of hydraulic fracturing markets could be hindered by enormous cost of capital together with negative environmental impact. Shifting trends in the development of unconventional reserves such as shale, tight gas, tight oil and carbon bed methane (CBM) is expected to boost market growth in hydraulic fracture over the following years. The use of sophisticated extraction methods also helped E&P businesses boost returns in deep-and ultra-deep-sea, low-profit areas and Arctic areas. The potential demand for fracking is anticipated to come largely from the emerging economies of China, Argentina, Brazil, Mexico, Algeria and Russia, as horizontal boiling initiatives are expanding in unconventional hydrocarbon areas.

In the coming years, E&P activities in unconventional resources, such as shale gas and tight oil, are expected to gain momentum, according to the Energy Information Agency (EIA). The exploration of alternative hydrocarbon reserves is expected to extend the depletion of conventional reserves by another few years. These factors are expected to have a positive effect on market growth in hydraulic fracturing over the forecast period.

The market value chain for hydraulic fracturing encompasses several complex segments, including Exploration and Production (E&P), petroleum field services, water and waste disposal, microseismic monitoring, fracturing fluids, fracturing systems and, finally, regulatory bodies.

Due to the potential environmental risks, rigorous regulations and safety mandates of various national governments and regulatory bodies, such as EPA and REACH, are expected to hinder the growth of the industry. A major challenge for industry participants will also be the moratoriums and bans from several regional agencies in France, Romania, Tunisia and Bulgaria against hydraulic fracturing.

Operations of hydrofracking are also strongly linked to crude oil prices. In the last two years, low crude oil prices have drastically hampered the manufacturing of oil in narrow and shallow reservoirs, particularly in North America. The acquisition of a permanent water source and its waste disposal concerns also pose a threat to the participants in the industry. Major businesses have been creating creative techniques that use less or no water to minimize environmental danger.

Technology Stance

Plug & performance and sliding sleeves are two main techniques used for multi-stage fracturing simulation. Plug & Perfect has been the most dominant technique of hydraulic fracturing, accounting for over 80% of global sales in 2018. The method for hydrofracturing casted holes is commonly used and is projected to be moderately strong during the forecast period.

Sliding sleeve technology is still under growth and is being used in open-hole and naturally broken structures more and more. The two techniques are used separately or in a mixture according to some of the key variables, including price general, fracture performance, structure form and pore ability. The technology sector is expected to increase by an estimated CAGR of 9.6 per cent between 2016 and 2026.

The technique of sliding sleeves takes less time to frack compared to plug & perf, which can lead to lower costs. This technique can be used to prevent the flow of excess water from several reservoir zones. Plug & perf is the conventional technology preferred for easy access in horizontal well fracking. Some businesses use both plug-and-perfect and folding sleeves on the same base, a technique called hybrid frac for optimized outcomes. If either of the two techniques is missing in the same area, the effect on fracturing activities can be mitigated.

It is anticipated that the use of waterless fracturing methods to study unconventional oil resources will provide sector attendees with profitable possibilities for potential developments. The use of propane, nitrogen or carbon dioxide can involve waterless fracking. GasFrac Energy Services began using propane waterless fracturing technology. Similarly, nitrogen gas and pressurized foams and guar blend were also used in other businesses such as Canyon, Halliburton and Marathon Oil as fracking medium in several reservoirs. The new electronic sliding sliding sliding slider technology system tracks the number of downhole magnetic fracture balls to determine the opening time for unconventional finishing.

These techniques use less or no water and are anticipated to assist oilfield service providers and businesses tackle environmental legislation enforced by different authorities. Technological advances to alleviate environmental risks and degradation are expected to provide profitable opportunities for future investment to key hydraulic market fracturing participants.

Material Stance

The main material segment used for hydrofracking was Proppants. In 2018, the segment generated revenues in excess of USD 10.05 billion. Sand, plastic and resin-coated clay are also categorized as sand. Resin covered sand is widely used to improve packaging and holds the supplier to its place without returning to the wellboard.

Raw sand is the most commonly used form due to its simple accessibility and low price. Raw sand is usually used in most pressing conditions of a wellbound, but in wellboards with high closure pressures it is hard to use. The market share of resin-coated sand is anticipated to boost due to their price benefits over ceramics and improved efficiency over coarse sand.

Ceramic proppants are used mainly to maximize the conductivity of fractures in transverse hydraulic fracturing with limited interaction in the wellbore which causes a high fluid speed in the proppants. Industry respondents conduct studies into nanotechnology applicants to increase the stream of manufacturing from deeper pools. Oxane Materials Inc., for example, has developed OxFrac and OxBall. This elevated resistance and light weight supports stop the fractures from closing when the injection stops.

Rice's Richard E. Smalley Institute of Nanotechnology Research contributed to the development of OxBall and OxFrac, the light and ceramic high-powered proppants developed by the energy-oriented nanoproducts company, Oxane Materials Inc. OxBall is now commercially used, while OxFrac is in initial growth and revenues are planned for this year's start.

To date, more than eight holes have been used to drill OxBall; the findings of these surveys have been very successful. OxBall's first batch has been produced at a 300,000 square foot plant in Van Buren, Arkansas, with an initial production of 20 million lbs / year, up to 80 million lbs / year. OxBall is used to improve the output flow from deeper Haynesville and Eagle Ford play; OxFrac is thought to be used mainly in the shale Barnett play.

Chemical additives, surfactants, solvents and inhibitors of corrosion are other materials used for hydraulic fracturing together with proppants. Methanol, hydrochloric acid, sodium carbonate, magnesum Peroxide, tetramethyl ammonium chloride and ethylene glycol are major chemicals used for this purpose.

Application Stance

The growing number of aging brownfields and maturity fields are driving industrial operators to produce more crude oil from unconvenient resources. Unconventional hydrocarbon reserves including shale, tight oil & gas, and CBM, which account for over 75% of total sales in 2018, dominated the global hydraulic fracturing industry. The shale boom in the industry became the biggest implementation segment. Shale-gas hydraulic fracturing revenues are expected to rise by 9.9 percent between 2016 and 2026 to a net value of USD 29 billion by 2020.

The increase in demand for natural gas from power plant markets due to increased fuel efficiency will stimulate business growth during the forecast period. According to IEA estimates, natural gas production is expected to expand in the coming years and the shale gas is expected to contribute significantly to this growth. Tight oil, also recognized as shale oil, will also be a major cause of heavy crude oil in the coming years. In the next few years, the hydraulic fracturing sector is expected to see steady growth in tight gas and coal-bed methane (CBM) reservoirs.

Market Segmentation

Global Hydraulic Fracturing Market, by Technology

• Sliding Sleeve
• Plug and Perf

Global Hydraulic Fracturing Market, by Material

• Proppant
  • Resin-coated sand
  • Ceramic
  • Sand
• Others

Global Hydraulic Fracturing Market, by Application

• Tight oil
• Shale gas
• CBM
• Tight gas
• Others

 Global Hydraulic Fracturing Market, by Geography

• North America.
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa (MEA)

The market research study on “Hydraulic Fracturing Market Size, Share & Trends Analysis Report by Technology, Material, Application, and Region - Global Industry Size, Share, Trends and Forecast 2019 - 2026” offers detailed insights on global Hydraulic Fracturing market segments with market dynamics and their impact. The report also covers basic technology development policies.

Key Players & Strategies

The worldwide hydraulic fracturing market is slightly strengthened due to the existence of numerous main players across the value chain. Major industries include multinational conglomerates including E&P businesses, oil field services and personal machinery businesses, proppants and microseismic businesses. Oilfield service providers such as Halliburton, Schlumberger, BJ Services and FTS International dominate the worldwide industry, which together accounted for over half the world's revenues in 2015.

Tacrom Services S.R.L., United Oilfield Services, Weatherford International, Calfrac Well Services, Trican Well Services Ltd, Cudd Energy Services, Superior Well Services, Patterson UTI, ConocoPhilips and Franklin also play a major role in this sector. In 2016 the Patterson UTI concluded a merger agreement with the Seventy Seven Energy company of Oklahoma with 201 high-specific devices to enhance business growth.