Unconventional Natural Gas Extraction: Technologies and Global Markets -- Focus on North America

Report Highlights

• The global market for unconventional natural gas extraction technologies was valued at nearly $61.2 billion in 2010 and nearly $61.6 billion in 2011. The market should reach $91.3 billion in 2016 after increasing at a five-year compound annual growth rate (CAGR) of 8.2%.
• North America accounted for $54.8 billion in 2011 and is projected to total $63.8 billion in 2016, a CAGR of 3.1%.
• The North American vertical and directional drilling sector was valued at $2 billion in 2011 and should reach nearly $2.5 billion in 2016, a CAGR of 4.2%.

INTRODUCTION 

STUDY GOALS AND OBJECTIVES

This study provides a review of the global markets for unconventional natural gas production technologies at a regional level, with additional breakdowns for select relevant national-level markets. It seeks to quantify unconventional natural gas technologies markets based on available data and anticipated trends in global and regional market development for the considered unconventional natural gas extraction technologies. 

REASONS FOR COMPLETING THIS STUDY

BCC’s goal in conducting this study is to assess and describe the current status of the global unconventional natural gas-extraction technologies, as well as to assess the potential growth of this industry. More specifically, the study has the following objectives:

• To summarize existing unconventional natural gas extraction technologies and promising technologies under development.
• To evaluate the existing unconventional natural gas industry, with a focus on producers of each major viable technology.
• To assess market potential for unconventional natural gas extraction technologies over a five-year period from 2011 through 2016.
• To provide regional market breakdowns with select sub-regional breakdowns for countries with promising unconventional natural gas resources.

CONTRIBUTORS TO AND USE OF THIS STUDY

Global interest in unconventional natural gas production and associated extraction technologies has taken off over the last five years due to the influence of the unconventional natural gas boom in North America. Many countries are now looking to unconventional natural gas as a potential energy source to alleviate supply shortages, lower natural gas costs and generate revenue. This study is anticipated to be useful to industry players, researchers, corporations and others who have a stake in unconventional natural gas extraction technologies, as well as those who are considering expanding into these markets. This study provides critical information to decision makers regarding regional- and national-level investment strategies, along with the level of anticipated returns that will result from continued market development.

SCOPE AND FORMAT OF THIS REPORT

The scope of this report includes the following categories of unconventional natural gas extraction technologies:

• Vertical and directional drilling.
• Horizontal drilling.
• Hydrofracture equipment.
• Hydrofracture chemicals.
• Well completion and operation equipment.

Markets considered are shown in the following table. BCC analyzes each technology, determines its current market status, examines its impact on future markets and presents forecasts of growth over the ensuing five years. Technological issues including the latest trends are assessed and discussed, as is the current and likely ongoing regulatory environment in support of this industry.

BCC analyzes anticipated market values in light of regional and global markets for unconventional natural gas. This report examines government roles with respect to unconventional natural gas production, including regulatory requirements, support and incentives. It provides a review of the most relevant extraction technologies, discusses recent trends in well development and regional drilling and provides overviews and market assessments for each technology. 

GLOBAL MARKETS

The following table provides a review of the major global markets that were assessed in support of this study. Market breakdowns are provided for each of the listed regions and individual countries.

METHODOLOGY

Background information, including reviews of each unconventional natural gas technology and its implementation status, was collected from government and industry sources. Specific citations and references are provided as needed to support this study, and website links to government and industry studies, white papers and other relevant information are provided whenever available.

BCC’s research of present and historic market trends was conducted primarily via phone interviews and Internet research, relying on personal interviews and available governmental data. Internal company data and annual documentation of sales relevant to a particular unconventional natural gas technology were also reviewed to prepare market assessments. Based on the results of these surveys and research, BCC analyzed the potential applications for each technology and forecast remaining 2011 sales and sales through 2016.

Market sizes and installed capacity figures were calculated based upon data obtained from surveyed parties. Additionally, when available, the data provided in this report were compared with other industry data to ensure relevance, applicability and accuracy.

 Source: BCC Research  

INFORMATION SOURCES

Both primary and secondary research methods were used in preparing this report. BCC surveyed more than 50 companies to obtain the data for this study. Included were manufacturers of unconventional natural gas technologies, distributors of unconventional natural gas technologies and companies involved with the deployment of unconventional NG technologies and field facilities.  BCC also spoke with users of these technologies in a variety of global locales. Additionally, BCC compiled data from current financial and trade information, industry associations and government sources. 

ANALYST CREDENTIALS

Robert Eckard has more than a decade of experience working in the energy and environmental industries. Currently pursuing a PhD in Water and Energy Resources at the University of California at Davis, Mr. Eckard also runs a small industry research and technical consulting company, with an emphasis on energy, water and environmental sectors. He has provided economic analysis market assessments, environmental analysis, and technical water and energy reports to state and local governments, other consultants, and private companies and individuals throughout the U.S., Australia and Singapore. He also works as a subcontractor under the U.S. Department of Energy, providing analysis in support of fossil-fuel extraction and refining for petroleum fuels, coal and natural gas. He has produced reports for BCC Research on the global markets for residential and commercial solar thermal (ST) technologies, industrial and utility scale ST technologies, distributed generation (DG) technologies and energy-efficiency (EE) technologies. 

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DISCLAIMER

The information developed in this report is intended to be as reliable as possible at the time of publication and of a professional nature. This information does not constitute managerial, legal or accounting advice, nor should it serve as a corporate policy guide, laboratory manual or an endorsement of any product, as much of the information is of a speculative in nature. The author assumes no responsibility for any loss or damage that might result from reliance on the reported information or from its use.

Analyst Credentials

Robert Eckard, PhD, has 15 years of experience working in the cleantech, clean transportation, clean/smart cities, advanced fuels, water and energy sectors. Having completed his dissertation at the University of California at Davis, Robert also runs a specialty industry research and technical consulting company, with an emphasis on energy, water and climate-oriented sectors, including those segments relevant to this study. Robert specializes in commercialization, data-based economic analysis, market development and penetration, environmental analysis and technical energy, environmental and market studies for Fortune 500, Global 1000 and promising startups, as well as state and local governments, other consultants and industry organizations throughout the U.S., Canada, Europe, the Middle East, Southeast Asia and Australia. He worked as a subcontractor under the U.S. Department of Energy providing evaluations of a wide array of industrial technologies, systems and related supply markets. He helped to successfully develop new markets in the U.S. and abroad, identify target niches and support highly successful business strategy development. Previously, he produced reports for BCC Research on global markets pertaining to energy, industry, energy efficiency, water and industrial, durable goods and related categories and technologies. Robert works directly in the industries that he analyzes and has successfully secured over $225 million in fund development for specific projects and technologies in the last six years.