Hydraulic fracturing or fracking uses liquid pressure to fracture rocks to incur natural energy sources. Fracking helps deriving resources from low permeability reservoirs like shale gas, CBM, tight gas, and other unconventional fluid sources. Most of these resources are difficult to incur requiring additional pressure through different types of chemicals. These fluids and chemicals are a crucial part of the success of the whole process of hydraulic fracturing. Rise in the drilling activities and rising demand for unconventional energy sources are driving the global fracking chemicals and fluid market. Hence, the industry is poised to witness healthy growth in the near future.
Segmentation in Fracking Chemicals Market
The global fracking chemicals and fluid market is segmented based on the types of chemicals, wells, applications across particular end-user industry verticals and geographic regions. These chemicals and fluids can be used in both vertical and horizontal wells. The most common type of fluids and chemicals used in the industry are available in water, foam, gelled oil or other base fluids. End user industries in this market include friction reducers, acids, clay stabilizers, surfactants, breakers, scale inhibitors, gellants, iron controls, cross linkers, corrosion inhibitors, pH adjusting agents, biocides, and others. Geographic regions in the industry include North America, Latin America, Europe, Middle East, Asia, and Africa.
Trends, Drivers, and Segments
Development of the market sector for unconventional energy sources is the strongest driver for the fracking chemicals and fluid market. Products like shale oil, coal bed methane or CBM, and such other products are creating steady factors for growth and investment within the industry on global scale. Many leading oil and gas producers are increasingly using these products, which is driving the demand for the fracking fluids. Increasing competition within various oil producing countries and offshore investments from aspiring nations are driving the demand of drilling activities and hydraulic fracturing alike. Great amount of research on local as well as international level has also triggered demand for numerous chemicals and substituted for the existing products in the market.
As a result of all these factors, the global fracking chemicals and fluid market is expected to grow at a healthy CAGR of over 9% from 2014 to 2018. At the projected compound annual growth rate, the market is anticipated to reach $20 billion by 2018. North America holds more than 905 of the global market shares. Increasing demand from the rest of the developing regions is expected to present better opportunities for expansion, growth, business and profits for the key players within the regions.