Nigeria Hydraulic Fracturing Market Overview, 2029

Nigeria Hydraulic Fracturing Market Overview, 2029

Amidst changes in the world's energy supply, hydraulic fracturing—a technique for extracting oil or natural gas from shale formations by forcing a high-pressure fluid through the rock—arrived in Nigeria. Its implementation in Nigeria was intended to diversify the country's energy mix and lessen dependency on traditional oil supplies. It was initially heralded as a game-changer for energy independence. The prospect of unleashing enormous shale gas reserves in Nigeria's sedimentary basins, such the Chad Basin and Benue Trough, sparked interest in fracking technology from both local and foreign sources. Nigeria's hydraulic fracturing sector has seen a tumultuous history characterised by environmental conflicts and technological hurdles. Since its beginning, the sector has had to overcome several obstacles, such as unreliable geology, inadequate infrastructure, and regulatory frameworks that are not ready for unconventional drilling methods. Public disapproval and regulatory attention have been intensified by environmental worries about methane emissions, water pollution, and seismic activity. Nigerian hydraulic fracturing began with exploratory activities in the early 2000s, when various pilot projects and feasibility studies were carried out to determine the potential for shale gas. However, community resistance and regulatory uncertainty have made development sluggish. The Nigerian government has managed to strike a careful balance between advancing energy security and preserving environmental integrity because it is cognizant of the economic advantages while being mindful of the environmental hazards. The creation of regulatory frameworks by organisations like the Department of Petroleum Resources (DPR) to monitor fracking operations and enforce environmental regulations is one of the major turning points. These steps are intended to reduce the hazards related to hydraulic fracturing while creating an atmosphere that is favourable to investment.

According to the research report ""Nigeria Hydraulic Fracturing Market Overview, 2029,"" published by Bonafide Research, the Nigeria Hydraulic Fracturing market is anticipated to grow at more than 2% CAGR from 2024 to 2029. Significant shale gas deposits are found in Nigeria, especially in the Benue Trough region. The nation has a strong chance to diversify its energy sources and lessen its dependency on traditional oil and gas supplies because to these deposits. Hydraulic fracturing methods used in the exploration and exploitation of these shale gas formations have the potential to release enormous energy reserves, boosting Nigeria's economy and energy security. One important motivator is the increasing demand for energy security and independence. Nigeria, a significant producer of oil, must contend with issues like volatile international oil prices, unstable geopolitical conditions, and rising local energy use. By using domestic shale gas resources, hydraulic fracturing may lessen reliance on foreign fuels and increase a country's energy self-sufficiency.

The Nigerian hydraulic fracturing market has a number of challenges that hinder its expansion. The social and environmental issues around hydraulic fracturing pose a serious obstacle. Large amounts of water, chemicals, and sand are injected underground with this technology, which raises questions about possible groundwater contamination, seismic activity, and effects on land usage. To win support from the public and regulatory approvals, it is imperative to address these environmental and social hazards through strict legislation, technological developments, and community participation. The lack of technological know-how and infrastructure needed for effective fracking operations in Nigeria is another challenge. There are financial and logistical obstacles in the way of building the required infrastructure, which includes pipelines, processing plants, and transportation networks. Although it necessitates a large training expenditure, developing local capability and competence in hydraulic fracturing technology and operations is crucial.

The Nigerian hydraulic fracturing industry is undergoing significant change due to a number of developments. The growing use of cutting-edge technology to enhance environmental sustainability and operational efficiency is one noteworthy development. Fracking innovations that minimise the impact on the environment and operating expenses are becoming more popular. These innovations include recycling fracturing fluids, using less water, and using green chemicals. In order to effectively manage the hazards associated with hydraulic fracturing, regulatory frameworks and governance are becoming more important. The government of Nigeria and industry participants are probably going to concentrate on creating strong regulatory frameworks that strike a balance between the interests of the community and the environment as well as economic gains.

Nigeria's hydraulic fracturing (fracking) industry is not as established or well-known as it is in some other areas for a variety of reasons, including regulatory, environmental, and economic ones. Despite having the technical capacity for fracking, major international oil companies (IOCs) operating in Nigeria, like Shell, ExxonMobil, Chevron, and Total, have mainly concentrated on conventional oil and gas extraction because of the challenges and unknowns associated with fracking in the Nigerian context. Although they haven't pursued fracking activities significantly, local businesses like Nigerian National Petroleum Corporation (NNPC) and indigenous operators are also participating in the oil and gas industry. Nigeria has significant fracking potential, mostly in the undeveloped shale formations in interior basins like the Chad Basin, but the industry has remained wary because of worries of community opposition, environmental effects, and water constraint.

The Nigerian market for hydraulic fracturing, or ""fracking,"" is concentrated on the Niger Delta and portions of the Benue Trough. The country's southern region, the Niger Delta, is well-known for having large natural gas and oil deposits. The geology of the area is typified by hydrocarbon-rich sedimentary basins, which provide substantial potential for hydraulic fracturing operations targeted at obtaining unconventional oil and gas resources, especially in shale formations. The Benue Trough in central Nigeria is also gaining attention as a possible location for hydraulic fracturing because of its geological resemblance to other productive shale basins globally.

Different kinds of fluid are used in hydraulic fracturing operations in Nigeria, depending on the geology and operating needs. Water-based fluids are widely utilised because they are readily available, reasonably priced, and appropriate for formations with optimum water compatibility. Water-based alternatives are less successful in some reservoir circumstances, thus oil-based fluids, albeit less prevalent because to increased costs and environmental concerns, may be used. Foam-based fluids are appropriate for some shale formations because they have benefits including decreased formation damage and enhanced proppants transport capacities. Other fluids, such as hybrids and acid-based fluids are used for unconventional reservoirs when traditional fluids might not be enough. This increases well productivity in difficult settings. Hydraulic fracturing frequently uses water-based fluids because they are more efficient in delivering proppants into fractures and have a more ecologically friendly profile than other fluid types like acid- or oil-based fluids. Water-based fluids are favoured in Nigeria due to their reduced environmental effect and simplicity of disposal or treatment after use, particularly in light of the country's increasingly strict environmental legislation. The fluid type in question guarantees low levels of pollution to both surface and groundwater, which is consistent with the growing emphasis on sustainability in oil and gas activities around the globe.

Hydraulic fracturing is applied to both vertical and horizontal wells in Nigeria. Because they may intersect more reservoir rock, horizontal wells are especially preferred in tight oil and shale gas applications. This maximises contact area and production rates. Although they are mostly utilised in conventional oil and gas extraction processes, vertical wells are also utilised in hydraulic fracturing operations, where vertical drilling techniques are determined by geological structures and financial viability. Because horizontal wells can maximise contact with reservoirs and boost production efficiency, they have become more popular in Nigerian hydraulic fracturing operations. Operators may generate vast networks of fractures by drilling horizontally into the hydrocarbon-bearing strata. This makes resources more accessible than they could be if they relied solely on vertical wells. Horizontal wells are the best option for maximising hydrocarbon recovery in Nigeria since they extract shale gas and tight oil deposits more effectively than other methods, especially given the country's many deep and stacked reservoirs.

The two primary approaches used in the hydraulic fracturing industry in Nigeria for technology adoption are Plug & Perf and Sliding Sleeve systems. Plug & Perf is a horizontal wellbore technique where many zones are successively placed and fractured by isolating each zone with cement plugs and perforating sleeves. With pre-installed sleeves that may open or shut on command, sliding sleeve technology provides a continuous fracturing operation that enables the selective fracturing of certain reservoir zones. These technologies have been selected with regard for operating efficiency, reservoir parameters, and well design. In Nigeria, the Plug & Perf method is often used during hydraulic fracturing operations. Using several packer systems, this process entails separating parts of the horizontal wellbore and subsequently perforating each segment. After being separated and punctured, every segment is separately compressed using fracturing fluid to induce cracks and introduce proppants, hence enhancing the reservoir's stimulation. Because of the operational flexibility and control this technology offers, operators may effectively adapt stimulation efforts to the unique features of various reservoir zones. The Plug & Perf method is a popular alternative to Sliding Sleeve in many applications because it improves production rates and total recovery in Nigeria's diverse geological formations.

In Nigeria, hydraulic fracturing is used in a number of different energy industries. Leveraging hydraulic fracturing techniques to release natural gas reserves from shale strata, shale gas production is becoming more and more popular. A key component of the nation's energy policy is tight oil, which is obtained by hydraulic fracturing and uses tight reservoirs to trap oil resources. In order to increase permeability and optimise gas recovery rates, hydraulic fracturing is also beneficial for tight gas reservoirs. Coalbed methane and improved geothermal systems are two further uses for hydraulic fracturing that demonstrate how adaptable technology is in helping Nigeria diversify its energy sources and solve issues with energy security. Nigeria has substantial shale gas deposits, thus the hydraulic fracturing business there is especially concentrated on shale gas extraction. To get shale gas out of the rock crevices where it is confined in tight formations, extensive hydraulic fracturing is needed. Nigeria's strategic objective to diversify its energy mix and the rising demand for energy worldwide make shale gas production a potential prospect.
Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Hydraulic Fracturing market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Fluid Type
• Water-Based
• Oil-Based
• Foam-Based
• Others (Acid-Based Fluids and Hybrid Fluids)

By Well Type
• Horizontal
• Vertical
• By Technology
• Plug & Perf
• Sliding Sleeve

By Application
• Shale Gas
• Tight Oil
• Tight Gas
• Others (Coalbed Methane (CBM),Enhanced Geothermal Systems (EGS))

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Hydraulic Fracturing industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.