Saudi Arabia's state-owned oil company Saudi Aramco has begun producing shale gas from one location and is exploring the North Arabia basin, the South Ghawar basin, and the Jafurah basin. The increased hydraulic fracking of unconventional onshore reserves is expected to increase the demand for frac stacks during the forecast period. As a result, several operating companies have shifted their focus toward the exploitation of unconventional onshore reserves such as shale and tight gas reserves, which have a lower risk and require lower capital investment than large offshore projects. In 2021, global oil discoveries fell to the lowest level in 75 years, falling from 12.5 billion barrels of oil equivalent (boe) in 2020 to 4.7 billion boe in 2021, nearly a 62.5% Y-o-Y decline.The demand for fracturing is growing as conventional fields are aging, and more unconventional reservoirs are to be tapped. Hydraulic fracturing is used to increase the rate of crude oil and gas being recovered from conventional and unconventional reservoirs.North America is one of the largest markets for frac stacks, led by the United States, primarily due to the shale boom, which has led to the increased exploitation of its shale reserves that need to be fractured for economical production.The application of big data analytics and IoT systems in fracking operations is expected to lead to significant growth opportunities for the frac stack market in the coming years. The application of the Internet of Things (IoT) to use a large amount of data generated during the exploration and production (E&P) activities has led to a growing demand for safety concerns and improving the efficiency of the fracking process using advanced analytics and simulation software.As hydraulic fracturing increases in the onshore sector, the frac stack market is expected to get larger. The demand for fracturing is growing to maintain or increase production from existing fields and the increasing popularity of unconventional reserves such as shale and tight ones. The onshore sector has accounted for around 70% of the global crude oil production.However, environmental concerns and a lack of capital market and incentives are restraining the market growth. Additionally, the shale boom in the United States, which has led to massive growth in production volumes and the commercialization of fracking technology, has reduced the capital costs of fracking operations globally, which is expected to drive the market during the forecast period. This is expected to drive the frac stack market during the forecast period. There is rising production from unconventional resources, as most of the conventional oil fields are aging at a faster rate and will not be able to meet the growing energy demand. As global oil prices fell enormously during the COVID-19 pandemic, the frac stack and fracking market suffered immensely, as most producers halted fracking operations due to lower oil prices. The frac stack market is expected to register a CAGR of more than 5% during the period from 2022 to 2027.
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