Recent years have seen marked advancement of the shale gas industry due to key enabling technologies in shale gas extraction. This includes hydraulic fracturing, horizontal drilling, microseismic monitoring technologies, information and communication technologies, and produced water technologies. Powered by these technologies, the shale gas industry has managed to influence the US energy mix, enabling the country to achieve energy self-sufficiency.
New analysis from Frost & Sullivan, Technologies Enabling Extraction of Shale Gas, finds that the US is the key innovator and adopter of new extraction technologies.
For complimentary access to more information on this research, click here.
“Other countries with ample shale reserves also look to develop shale gas resources with the aid of advanced technologies,” noted Technical Insights Research Analyst Lekshmy Ravi. “The high price of oil and gas that has prevailed since the middle of the last decade, along with the opportunity shale gas presents to reduce import dependence, has been instrumental in driving up interest in shale gas production and extraction technologies.”
However, with the global market now witnessing an oversupply of shale products, oil prices have fallen, dampening the pace of shale gas production and consequently the need for related technologies. During the shale gas boom, no other country besides the US focused on developing these resources, clearly demonstrating a downtrend in the industry.
“Horizontal drilling and hydraulic fracturing are the major technologies which have made shale gas extraction economical and easy,” pointed out Ravi. “To survive current market volatility, however, enabling technologies in shale gas extraction must be even more cost effective.”
Since shale gas players are trying to minimise production costs to maintain competitiveness, they will patronise technology developers who make the extraction of shale gas cheaper. Companies that can introduce interconnected smart systems with built-in feedback to improve efficiency and reduce operational costs will be particularly attractive.
In fact, the shale gas industry may witness a shake-up this year as companies attempt to acquire technology providers and developers. They will obviously target enterprises with the most attractive proprietary and innovative technologies.
Adapted from a press release by David Bizley