Global Tight Gas Market by Application (Commercial, Residential, Transportation, Industrial, Power Generation) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global tight gas demand reached 10,441.3 billion cubic yards (BCF), in 2019, and is projected to rise at a compound annual rate (CAGR), of 5.02% between 2020-2027. Tight gas refers to a form of unconventional gas that is contained deep underground in low-permeability rock, such as limestone or sandstone. Hydraulic fracturing and fracking use high-pressure water injections to extract the gas from the source rock. With the decreasing conventional gas reserves and rising energy demand, there has been a shift to unconventional natural gas reserves such as tight gas, coal bed methane, and shale gas. Tight gas is also cleaner than other fossil fuels like coal and petroleum products. This will positively impact the future demand.

The U.S. tight gas market has been driven by government investments, support policies and subsidies. The U.S. will continue to develop technologically advanced techniques that will increase tight gas production during the forecast period.

Due to its vast tight gas reserves, advanced drilling equipment and skilled labor force, the U.S. has a dominant market position. The U.S.'s tight gas supply and production are price-elastic. High oil prices lead to higher upstream investments in tight gas production. A prolonged period of low oil prices will result in production declines. This trend will likely lead to uncertain market conditions in the future.

Production of tight gas requires significant amounts of water. Drilling operations also generate harmful emissions. This has led to significant environmental concerns and opposition from activist groups, which have hampered tight gas development across multiple potential reserves.

Stringent environment-protection regulations, along with long periods of government review and permit issuance, are expected to hinder the market growth over the forecast period. As an example, U.K.-based Ascent Resources plc didn't receive the permits it needed to re-stimulate production from its existing producing wells. This includes the tight gas reservoirs at the Petisovci fields.

Application Insights

With a 34.2% volume share, the industrial segment was the most popular application segment for 2019. This is due to tight gas utilization for several value-added outputs in the industrial sector. It is used, for example, as a feedstock to produce fertilizers, chemicals, or other commodities. This has created many opportunities for countries with limited gas resources to make use of this resource to increase their industrial output in the future.

Over the forecast period, the power generation segment will experience the fastest volume growth. This is due to the increasing trend of coal-to-gas switching in power plants around the world. Tight gas will be more prominent in energy mix because it produces lower carbon emissions than other fossil fuels.

Due to the broad application of tight gas across all household needs, the residential sector held a significant market share for 2019. Most tight gas is used to heat water and space in homes. Due to the increasing use of tight gas in residential areas, there has been an increase in the development of the pipelined natural gas network to deliver the gas directly to the homes.

Because it is able to reduce harmful exhaust emissions and provide cleaner combustion, tight gas will gain considerable traction as an alternative fuel source for transportation. The demand for low-cost and clean transportation fuels in developing countries like India and China is expected to grow.

Regional Insights

North America held the largest volume share at 90.6% in 2019. It is expected to continue its position during the forecast period. The U.S. will be the main contributor to revenue growth. The market is driven by the deployment of advanced drilling technology and the existence of tight gas reserves in the Permian Basin (Anadarko, Niobrara and Bakken fields).

China is expected to gain a significant market share during the forecast period. This is due to China's goal to increase domestic natural gas production and growing demand to improve energy security in the region. The majority of China's tight gas resources are found in mountainous areas. This topography can increase drilling costs by an exponential amount, which in turn hinders market growth to a large extent.

In June 2019, however, the Chinese government extended existing incentives and provided new subsidies as part of a subsidy program for natural gas production from low-permeability tight gaz formations. Active drilling programs in tight gas resources like Sichuan or Ordos basins have increased well productivity and decreased the drilling cost per hole. This trend will have a positive impact on the entire industry landscape in the country.

The presence of technically recoverable, tight gas formations in Argentina will allow it to grow at a substantial CAGR over the forecast period. Despite the fact that the country's tight-gas production from mature fields has been reduced, the continuous development of the Vaca Muerta formation will continue to drive the country's production growth. Vaca Muerta is responsible for more than 20% of total country's natural gas production. However, only 4% are estimated to have entered development until 2019.

Market Share Insights & Key Companies

Global market is highly competitive and dominated by large international conglomerates of gas companies that hold a significant share of the value chain. Other industry players are also focusing on developing local infrastructures for tight gas production, and building strong connections with local and international customers to increase their market share over the coming years. The following are some of the major players in tight gas market:

• Chevron Corporation

• Royal Dutch Shell PLC

• ConocoPhillips

• Exxon Mobil Corporation

• PetroChina Company Limited

• Equinor ASA.

Up Market Research published a new report titled “Tight Gas Market research report which is segmented by Application (Commercial, Residential, Transportation, Industrial, Power Generation), By Players/Companies Exxon Mobil Corporation, Royal Dutch Shell PLC, Chevron Corporation, Equinor ASA, PetroChina Company Limited, ConocoPhillips”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Tight Gas Market Report Segments:

The market is segmented by Application (Commercial, Residential, Transportation, Industrial, Power Generation).

Tight Gas Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Tight Gas Market

Overview of the regional outlook of the Tight Gas Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Tight Gas Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Tight Gas Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Commercial

                2. Residential

                3. Transportation

                4. Industrial

                5. Power Generation

7. Market scenario by region, sub-region, and country.
8. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
9. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
10. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Tight Gas Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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Reasons to Purchase the Tight Gas Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.