Oil Shale Market Forecasts to 2028 – Global Analysis By Product (Shale Gasoline, Shale Diesel, Kerosene and Other Products), By Technology (In-Situ Technology and Ex-Situ Technology), By Process (Oil Shale Exploration, Ore Preparation, Oil Shale Retorting

Oil Shale Market Forecasts to 2028 – Global Analysis By Product (Shale Gasoline, Shale Diesel, Kerosene and Other Products), By Technology (In-Situ Technology and Ex-Situ Technology), By Process (Oil Shale Exploration, Ore Preparation, Oil Shale Retorting and Shale Oil Refining & Specialty Services), By Application (Fuel, Electricity, Cement, Chemicals and Other Applications) and Geography

According to Stratistics MRC, the Global Oil Shale Market is accounted for $3.36 billion in 2022 and is expected to reach $5.87 billion by 2028 growing at a CAGR of 9.7% during the forecast period. Oil shale is a particular kind of rock that is rich in organic materials and contains kerogen, a solid mixture of organic chemical compounds. Due to its low cost of extraction, oil shale is a type of substitute that is used more frequently for conventional crude oil. Growing industrialization and rising energy demand are the key factors propelling the market's expansion.

According to the Organization for Economic Co-operation and Development (OECD), a surge in the price of crude oil began during the lockdown, due to extensive supply and less demand. However, there is no impact of COVID-19 on the oil shale market due to the extensive production of oil.

Market Dynamics:

Driver:

Growing petrochemical industry to drive the market

Many nations have significant shale oil reserves that could be used to reduce their reliance on oil imports to meet the needs of the domestic petrochemical industry. By offering an incentive to invest in shale oil production, this helps the shale oil industry in the country grow. Additionally, the market has been supplanted by better and cleaner alternatives, which has decreased the share of shale oil in transportation and power generation. The petrochemical industry is anticipated to grow significantly during the forecast period as a result of rising petrochemical product usage, the adoption of novel processes like direct crude cracking, and rising investments in the industry.

Restraint:

Expensive production and continuous usage of fossil fuels

As there is no alternative technology that is suitable for shale gas and because the current technology is still so expensive, shale gas drilling is two times more expensive than natural gas drilling. Additionally, even though these are different dates, oil, natural gas, and coal will all run out at some point. To lessen environmental pollution, the use of these resources ought to be decreased. By converting shale gas potential into actual production, fossil fuel use will last for a very long time.

Opportunity:

Rapid urbanization

The market is influenced by rising income levels and increased urbanization-related car sales. In addition, soaring energy demand and the construction of new power plants are fueling the market's expansion and boosting demand for shale oil. Shale oil can be used as a boiler fuel in a furnace to produce steam for electricity. Due to a sharp increase in construction development around the world, there is also an increase in demand for cement and other products which is driving the industry.

Threat:

Quickens the global warming

The environment could be seriously impacted by the extraction of oil from shale. The discussion surrounding the development of the resource is dominated by four specific areas of concern: greenhouse gas output, water consumption and pollution, surface disturbance, and socioeconomic effects. Concerns about shale gas production were expressed by environmentalists and specialists in climate change. This development led to the banning of shale gas drilling by many governments, including the French government.

Covid-19 Impact

The emergence of COVID-19 has coincided with a core oil market management dispute. The issue of oversupply and the global demand situation have a negative effect on the demand and price of oil shale. Due to the fluctuating prices of crude oil and natural gas, US shale oil and gas demand fell precipitously, prices fell precipitously, and bankruptcies were reported at a shockingly high rate. Natural gas proved reserves decreased by just under 22 trillion cubic feet (TCF), a decrease of 4%, while proved reserves of crude oil and lease condensate decreased by 9 billion barrels, a decrease of 19%. However, as travel restrictions were lifted as a result of the widespread vaccination campaigns in 2021, the demand for liquid fuels increased. This is anticipated to lead to an increase in the demand for oil shale, which will fuel the expansion of the regional oil shale market over the course of the forecast period.

The In-Situ Technology segment is expected to be the largest during the forecast period

The In-Situ technology segment had the largest market share and is anticipated to maintain its dominance throughout the forecast period. Since then, this technology has been widely employed; in-situ retorting is the only method to achieve large-scale industrial exploitation. When oil shale is heated directly underground during in-situ exploitation, other products such as gas and oil are also recovered through dry distillation and collected through the production well. Due to its advantages, such as low environmental contamination, a high oil recovery rate, good product quality, and minimal floor space requirements, in-situ mining technology has gradually replaced oil shale mining.

The Electricity segment is expected to have the highest CAGR during the forecast period

During the forecast period, the electricity segment is anticipated to witness the highest CAGR. The electricity segment will post lucrative growth during this period. Moreover, the appeal of producing shale oil and/or electric energy from oil shale has grown to the point where the nation's energy diversity has increased in terms of both economic and strategic importance in today's world, where oil and electricity are becoming more and more difficult to obtain. These factors are anticipated to support the expansion of the electricity segment.

Region with largest share:

Due to the rising need for affordable alternatives to conventional energy, the region's growing oil and energy industries, and the increasing depletion of non-renewable energy sources, the North American region is anticipated to dominate the oil shale market throughout the forecast period. The two biggest markets in North America for oil shale are the US and Canada. Moreover, with a significant increase in production, US shale oil is now competitive with Saudi Arabia and Russia in terms of market share.

Region with highest CAGR:

The Asia Pacific region is anticipated to witness the highest CAGR during the forecast period, owing to the region's growing preference for oil shale as a substitute component in conventional fuels and its expanding oil and energy industries. Furthermore, the demand for cutting-edge technology, tools, and equipment to boost the effectiveness of exploration and production activities in onshore and offshore areas is also anticipated to fuel the growth of the oil shale services market in the Asia-Pacific region.

Key players in the market

Some of the key players profiled in the Oil Shale Market include Electro-Petroleum Inc., Exxon Mobil Corp., Fushun Mining Group Co., Ltd, Global Resource Corp, Imperial Petroleum Recovery Corp., Independent Energy Partners, Millennium Synfuels, Llc, Mountain West Energy, Afsk Hom Tov, American Resource Petroleum Corp., American Shale Oil Corp., Aurasource Inc., Blue Ensign Technologies Ltd., Chattanooga Corp., Chevron Shale Oil Company, Narva Oil Plant, Petro Probe, Inc, Petrobras, Schlumberger, Shale Technologies, Llc and Shell Oil Co.

Key Developments:

In January 2023, Matador Resources that a wholly-owned subsidiary of Matador has entered into a definitive agreement to acquire Advance Energy Partners Holdings, LLC (“Advance”), including certain oil and natural gas producing properties and undeveloped acreage located in Lea County, New Mexico and Ward County, Texas (the “Advance Transaction”). The consideration for the Advance Transaction will consist of an initial cash payment of $1.6 billion.

In January 2021, OPEC has cut its 2021 forecast for US tight crude, another term for shale, and expects production to decline by 140,000 barrels per day to 7.16 million bpd. The US government expects shale output in March 2020 to fall about 78,000 bpd to 7.5 million. This is even when the price of crude is expected to rise, giving much-needed leeway to the shale oil and gas producers.

Products Covered:
• Shale Gasoline
• Shale Diesel
• Kerosene
• Other Products

Technologies Covered:
• In-Situ Technology
• Ex-Situ Technology

Process Covered:
• Oil Shale Exploration
• Ore Preparation
• Oil Shale Retorting
• Shale Oil Refining & Specialty Services

Applications Covered:
• Fuel
• Electricity
• Cement
• Chemicals
• Other Applications

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements