The Global Tight Gas Market assessed at USD 12 billion in 2019, is expected to grow at CAGR of 5% and cross the mark of USD 20 billion by 2027

Published | 22 July 2020

The Global Tight Gas Market assessed at USD 12 billion in 2019, is expected to grow at CAGR of 5% and cross the mark of USD 20 billion by 2027. Tight gas is natural gas with low absorbency. It originates in rock, usually in limestone or sandstone. It is a different source of energy produced through hydraulic fracturing. It is one of the green fossil fuels having low carbon content and releases lesser sulfur, metal compounds, and carbon dioxide while burning. 

The production process of Tight Gas passes through the stages of Seismic examination, Drilling, Production Stimulation, Hydraulic splitting, Acidizing, and De-liquefaction. The advent of tight gas as an unconventional energy source has transformed the background of energy safety in many countries. Many Tight gas investments face the barrier of freshwater stress level as the production process uses freshwater rigorously. Hence, the accessibility of freshwater is a vital factor affecting the development of the market. 

Rising energy demand because of the ever-increasing populace is the primary factor driving the market over the foreseeable period. With the increasing shift toward unconventional natural gases as sources of energy, the global tight gas market is likely to witness significant development over the projected period. Its surging usage in housing, transportation, commercial, power generation, and industrial sectors will provide momentum to its market growth. Growing Tight gas demand in the industrial market assures a favorable trend in the worldwide market shortly. Increasing R&D, commercialization, and exploration activity are expected to strengthen the market further over the coming six years. Technological up-gradation has made the extraction of Tight gas easier. It is likely to influence the market positively in the future. The increasing oil price across the globe works in favor of cheap alternate sources of energy like Tight gas. The progressive movement towards unconventional natural gases reassures penetration and expansion of the market over the foreseeable period.

Based on End User, Power and Energy Sector is the dominating segment 

Based on End User, the Global Tight Gas Market is segmented into Power and Other sectors. Tight gas has earned recognition as an eco-friendly and economical source of energy. The associated environmental and economic guidelines vehemently favor natural gas-powered plants. Its cost-effectiveness and strict regulations against carbon-exerting (mostly coal-based) plants are pitched to support the growth of the Tight gas market in the forthcoming period. The power generation industry accounted for over 30% share by volume in 2013 in the energy market. Conducive administrative efforts, coupled with a higher request for cleaner energy fuel, have propelled the exploration and retrieval projects of Tight gas.

Key Drivers 

Increasing levels of expenditure incurred on the expansion of the oil & gas industry propel the market growth

Growing oil prices worldwide has directed towards the discovery and usage of different sources of energy. The focus toward unconventional natural gases is likely to develop the market during the forthcoming period. The strict government guidelines related to shale gas exploration will divert waves in favor of Tight gas markets, giving it needed support and force.

Extended use of Natural Gas in Transportation

The surge has been noticed in the usage of natural gas for various vehicles. Natural gas is a versatile energy source that can be used in all vehicles such as buses, lift trucks, motorcycles, cars, vans, light and heavy-duty trucks, and locomotives. Tight gas is being increasingly used as energy fuel in transit by residential and commercial sectors. The transport sector has given a much-needed boost to the Tight gas market, with rising deployment of CNG vehicles. More than 24 million natural gas vehicles (NGVs) were operational worldwide in 2017. This trend is predicted to sustain throughout the projection period, confirming the Tight gas market's growth.

North America is expected to demonstrate the highest growth rate in the market during the projection period

North America has dominated the global Tight gas market until now. But the Asia Pacific is another critical region as the emerging Tight gas market. The disposable income of customers has been growing at an accelerated rate in the Asia Pacific, rising GDP of the region. It results in more demand for energy in the region. China, India, and Indonesia are the prime countries in the region, producing electricity and attracting more electricity consumption request. While only China and Australia are the major countries in the Asia Pacific in terms of unconventional gas production. So, there is a demand needed to be met.

Global Tight Gas Market: Competitive Landscape

Occidental Petroleum Corporation; BP p.l.c.; Canadian Natural; Chevron Corporation; Total; Exxon Mobil Corporation; Petro China Company Limited; Royal Dutch Shell; China Petrochemical Corporation; YPF; Marathon Oil Company; Ensign Natural Resources; Devon Energy Corporation; EOG Resources, Inc. are the prominent players in this market.

Tight gas is natural gas with low absorbency. It originates in rock, usually in limestone or sandstone. It is a different source of energy produced through hydraulic fracturing. It is one of the green fossil fuels having low carbon content and releases lesser sulfur, metal compounds, and carbon dioxide while burning. 

The production process of Tight Gas passes through the stages of Seismic examination, Drilling, Production Stimulation, Hydraulic splitting, Acidizing, and De-liquefaction. The advent of tight gas as an unconventional energy source has transformed the background of energy safety in many countries. Many Tight gas investments face the barrier of freshwater stress level as the production process uses freshwater rigorously. Hence, the accessibility of freshwater is a vital factor affecting the development of the market. 

Rising energy demand because of the ever-increasing populace is the primary factor driving the market over the foreseeable period. With the increasing shift toward unconventional natural gases as sources of energy, the global tight gas market is likely to witness significant development over the projected period. Its surging usage in housing, transportation, commercial, power generation, and industrial sectors will provide momentum to its market growth. Growing Tight gas demand in the industrial market assures a favorable trend in the worldwide market shortly. Increasing R&D, commercialization, and exploration activity are expected to strengthen the market further over the coming six years. Technological up-gradation has made the extraction of Tight gas easier. It is likely to influence the market positively in the future. The increasing oil price across the globe works in favor of cheap alternate sources of energy like Tight gas. The progressive movement towards unconventional natural gases reassures penetration and expansion of the market over the foreseeable period.

Based on End User, Power and Energy Sector is the dominating segment 

Based on End User, the Global Tight Gas Market is segmented into Power and Other sectors. Tight gas has earned recognition as an eco-friendly and economical source of energy. The associated environmental and economic guidelines vehemently favor natural gas-powered plants. Its cost-effectiveness and strict regulations against carbon-exerting (mostly coal-based) plants are pitched to support the growth of the Tight gas market in the forthcoming period. The power generation industry accounted for over 30% share by volume in 2013 in the energy market. Conducive administrative efforts, coupled with a higher request for cleaner energy fuel, have propelled the exploration and retrieval projects of Tight gas.

Key Drivers 

Increasing levels of expenditure incurred on the expansion of the oil & gas industry propel the market growth

Growing oil prices worldwide has directed towards the discovery and usage of different sources of energy. The focus toward unconventional natural gases is likely to develop the market during the forthcoming period. The strict government guidelines related to shale gas exploration will divert waves in favor of Tight gas markets, giving it needed support and force.

Extended use of Natural Gas in Transportation

The surge has been noticed in the usage of natural gas for various vehicles. Natural gas is a versatile energy source that can be used in all vehicles such as buses, lift trucks, motorcycles, cars, vans, light and heavy-duty trucks, and locomotives. Tight gas is being increasingly used as energy fuel in transit by residential and commercial sectors. The transport sector has given a much-needed boost to the Tight gas market, with rising deployment of CNG vehicles. More than 24 million natural gas vehicles (NGVs) were operational worldwide in 2017. This trend is predicted to sustain throughout the projection period, confirming the Tight gas market's growth.

North America is expected to demonstrate the highest growth rate in the market during the projection period

North America has dominated the global Tight gas market until now. But the Asia Pacific is another critical region as the emerging Tight gas market. The disposable income of customers has been growing at an accelerated rate in the Asia Pacific, rising GDP of the region. It results in more demand for energy in the region. China, India, and Indonesia are the prime countries in the region, producing electricity and attracting more electricity consumption request. While only China and Australia are the major countries in the Asia Pacific in terms of unconventional gas production. So, there is a demand needed to be met.

Global Tight Gas Market: Competitive Landscape

Occidental Petroleum Corporation; BP p.l.c.; Canadian Natural; Chevron Corporation; Total; Exxon Mobil Corporation; Petro China Company Limited; Royal Dutch Shell; China Petrochemical Corporation; YPF; Marathon Oil Company; Ensign Natural Resources; Devon Energy Corporation; EOG Resources, Inc. are the prominent players in this market.