PUBLISHER: DataM Intelligence | PRODUCT CODE: 1044478
PUBLISHER: DataM Intelligence | PRODUCT CODE: 1044478
The global tight gas market size was worth US$ XX million in 2020 and is estimated to reach US$ XX million by 2028, growing at a CAGR of XX% during the forecast period (2021-2028).
U.S. government defined a tight gas reservoir in the 1970s as a place where the predicted permeability to gas flow is less than or equal to 0.1 million decimeters (MD). It was a political criterion used to determine which tight reservoir gas production wells would be eligible for federal and state tax incentives.
Low-permeability source rocks, such as sandstone or limestone, contain tight gas, an unconventional form of natural gas trapped underground. Hydraulic fracturing or fracking employs high-pressure water injection to break up the source rock and recover the gas because it isn't free-flowing.
Tight gas is created similarly to regular natural gas deposits, except that the deposits are older. Tight gas evolved roughly 248 million years ago in Paleozoic strata, but conventional gas is new. Cementation and recrystallization modified a typical gas reservoir over a lengthy period. As a result, the rock's permeability was reduced and natural gas was confined tightly within rock formations. Onshore, the majority of tight gas deposits can be located.
Demand for more energy coupled with depleting conventional gas supplies has led to a paradigm shift towards unconventional natural gas resources such as tight gas, shale gas and coal bed methane. Additionally, tight gas cleaner burning compared to other fossil fuels like coal and petroleum products is predicted to positively impact demand in the coming years.
Policies enacted by governments to increase fuel output and advanced drilling methods used in several countries are projected to drive the tight gas market throughout the forecast period.
The surge in usage in tight gas applications
Tight gas serves various purposes, making it a valuable resource predicted to expand the global tight gas industry. Flammable gas is used as an energy source in transportation and local locations. The transportation sector has backed the gaseous gasoline market, increasing the number of CNG vehicles on the road.
In 2017, more than 24 million flammable gas vehicles (NGVs) were in use globally. All vehicles, including cruisers, automobiles, vans, light and hardcore trucks, transports, lift trucks and trains, can run on petroleum gas. As a result, all elements work together to help the global market flourish.
The rise in government policies for clean fuel production
Over the projected period, the market is expected to be driven by increased government regulations for clean fuel generation and the deployment of modern drilling technologies in various countries.
Tight gas, a type of natural gas, is regarded as a dependable energy source for power generation, accounting for the second-largest% of the world energy supply after coal. Tight gas's share is likely to rise in the next years due to coal's environmental and economic limitations, at least in nations where natural gas is a viable option.
Increasing environmental regulations and policies
Over the projected period, strict environmental restrictions and long government scrutiny and permission issuance are expected to hinder market expansion. For example, Ascent Resources plc, based in the United Kingdom, failed not to get the licenses necessary to re-stimulate production in the company's existing producing wells, including the tight gas reservoirs in the Petiovci field, in June 2019.
Tight gas extraction necessitates much water and produces toxic pollutants during drilling operations. It has sparked growing environmental concerns and vocal resistance from activist groups, putting a stop to tight gas development across numerous prospective reservoirs.
The tight gas demand has decreased significantly after the emergence of COVID-19. Due to the lockdown, laborers have been in a shortage, significantly hampering gas output. Furthermore, the imposition of lockdown directly impacts all modes of transportation globally. It has resulted in an upsurge in power outages in rural areas. Furthermore, the tight gas industry is losing money daily as output declines. Furthermore, the implementation of lockdown has impacted the import and export of tight gas globally.
Global Tight Gas Market Segment Analysis
The tight gas market is segmented into industrial, power generation, residential, commercial and transportation by application.
The industrial segment is expected to be the dominant type.
The industrial segment will emerge as the largest application category during the future years, with a good growth rate. The tight gas consumption of numerous value-added outputs required in the industrial sector can be ascribed to the rise. It is, for example, utilized as a feedstock in the production of fertilizers, chemicals and a variety of other products.
The trend has created various chances for tight gas-rich countries to enhance their industrial output in the coming years by utilizing this abundant resource. Lower carbon emissions from tight gas combustion compared to other fossil fuel combustion quality are predicted to boost tight gas's share of the energy mix in various countries.
North America is expected to show spectacular growth in the global tight gas market.
U.S. government investments, legislation and subsidies related to tight gas production have propelled the tight gas industry. In addition, tight gas output is predicted to increase over the forecast period due to the development of technologically improved techniques in U.S. There are various tight gas reserves spread across the Permian Basin, Anadarko, Niobrara and Bakken field that are pushing the industry in the region and the use of sophisticated drilling methods.
Due to its large tight gas reserves, superior drilling technology and highly trained workforce, U.S. enjoys a leading position in the global tight gas market. The price of tight gas is elastic in U.S. When oil prices are high, upstream investment in tight gas production is higher; alternatively, protracted periods of low oil prices result in a complete reduction in production.
To stay ahead of the competition, the industry's top firms are investing in R&D. The leading firms in the tight gas market are concentrating on growing their global footprint through acquisitions and mergers and diversifying their product range to match the dynamic trends of the global industries.
Companies like Royal Dutch Shell PLC, ConocoPhillips, PetroChina Company Limited, Chevron Corporation, Chesapeake Energy Corporation, Sinopec Oilfield Service Corporation, Equinor ASA, Repsol SA and Southwestern Energy Company are prominent players in the industry.
Overview: Repsol is a multinational energy company. It has set a goal of being a net-zero emissions corporation by 2050. Due to its great competitiveness and the quality of its industrial assets, the company is one of Europe's leaders. The corporation operates one of the most efficient refining systems on the continent, converting crude oil and other alternative raw materials into high-value products.
Product Portfolio: The company provides color and additive systems, polymer distribution, custom-designed materials and sophisticated composites.
Key Developments: Repsol SA paid US$ 8.3 million in 2015 to purchase 100% of Talisman Energy, a Canadian oil business (6.64 million euros). Repsol became one of the world's largest energy corporations due to the deal, with operations in more than 50 countries and over 27,000 workers. It also bolstered Repsol's position as an integrated company with a more balanced and competitive business model due to a stronger asset portfolio that includes several high-quality assets in geopolitically safe countries.
The global tight gas report would provide access to an approx. 45 market data table, 34 figures and 180 pages.
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