Oil Shale Market

According to a new report published by Introspective Market Research, titled, “Oil Shale Market by Process, Method, Product, End User, Region Global Market Analysis and Forecast, 2024-2032.

The Global Oil Shale Market was valued at $ 3.6 Billion in 2023 and is expected to reach $ 6.7 Billion by the year 2032, at a CAGR of 7.1 %.

Oil shale is a sedimentary rock that yields kerogen, organic material that is a source of oil. It is used to produce liquid shale oil, which is used to manufacture fuel oil, gasoline, diesel, natural gas, LPG, and other hydrocarbons through secondary processing. By-products can also be used for commercial goods like ammonia, sulfur, alumina, soda ash, and nahcolite. Shale oil, also known as 'unconventional' oil, cannot be recovered through conventional means other than hydraulic fracturing. It is used in the production of chemicals, marine fuel, and heating oil. Shale oil deposits are found worldwide, with the top-ranking nations being the US, China, Argentina, Mexico, and South Africa. The use of oil shale in petroleum production is driven by the depletion of fossil reserves and the growing demand for petroleum products.

According to the Oil Shale, the Market is segmented into process, method, product and end user, and region. By process, the market is categorized into Process (Extraction (mining), Retorting, and Refining. By method, the market is categorized into In-Situ and Ex-Situ. By product, the market is categorized into Diesel Fuel, Gasoline Fuel, Liquid Petroleum Gas, Kerosene and Others. By region, it is analyzed across North America (U.S.; Canada; Mexico), Europe (Germany; U.K.; France; Italy; Russia; Spain, etc.), Asia-Pacific (China; India; Japan; Southeast Asia, etc.), South America (Brazil; Argentina, etc.), Middle East & Africa (Saudi Arabia; South Africa, etc.).

The rise in car sales and urban population growth are driving the demand for oil shale resources. Rising income levels and urban population growth are driving this demand. Electricity consumption and the development of new power plants are also driving demand for shale oil. Shale oil can be used as fuel in a furnace to heat water, generating steam for turbines. The global construction industry is expanding the market for cement and other products. Technological advancements, such as drilling areas and new mining methods, are reducing operating costs. Advancements in in situ techniques and the development of GIS infrastructure are expected to further boost the market.

Rising crude oil prices are driving consumer attitudes towards oil shale, which offers advantages over traditional energy sources. This boosts the car market due to rising income levels and urbanization. Sales of shale oil are also driven by increasing energy demands and construction of new power plants. Shale oil has been used in furnaces to produce steam for electricity and cement in construction. Advancements in drilling techniques and modern mining and retorting technologies are also contributing to the growth of the shale oil industry. The expansion of the industry, in situ methods, and geospatial infrastructure are expected to drive its growth.

Oil Shale Market Segmentation

The Oil Shale Market is Segmented Based on Process, Method, Product and End User, and Region.

By Product:

The gasoline segment is expected to dominate the Oil Shale Market during the forecast period, accounting for approximately 43% of total sales in 2021. This segment, which includes gasoline, diesel, and kerosene, contributes to a quarter of energy production in the United States. The growth of the gasoline segment is driven by its significant role in energy production, and the positive impact of shale natural gas on supplies and consumer prices.

By Method:

In 2023, the In-Situ segment dominated the Oil Shale Market, accounting for around 63.2% of the market. This method involves heating oil from an oil window while the shale is underground using electric current. This process eliminates rock crushing and allows for efficient pumping and refining. In-Situ is widely used for oil shale extraction, and technology is continuously developing to improve results. The In-Situ segment is a key part of the oil shale extraction process.

Region:

North America is expected to dominate the global oil market by 2025 due to the rise in US oil production, particularly through shale, and the growing demand for cheap substitutes to traditional energy sources. The growth in the oil and energy industries and the depletion of non-renewable resources in this area are pushing North America ahead. The Organization of Petroleum Exporting Countries (OPEC) and other major oil producers have been slow to change their production patterns, making North America the leading player in the market. The demand for cheap energy sources and the increasing prominence of the oil and energy industries are driving North America's dominance.

Some of The Leading/Active Market Players Are-

• American Shale Oil (USA)
• Aura Source Inc. (USA)
• Blue Ensign Technologies Ltd (Australia)
• Chevron Corporation (USA)
• Electro-Petroleum Inc. (USA)
• Exxon Mobil Corporation (USA)
• Occidental Petroleum Corporation (USA)
• Chesapeake (USA)
• MARATHON OIL COMPANY (USA)
• CotCabot Oil & Gas Corporation (USA)
• Halliburton Energy Services. (USA) and Other Active Players

Key Industry Developments

In August 2023, Cummins Inc. and Chevron U.S.A. Inc., a subsidiary of Chevron Corporation announced a memorandum of understanding to advance their strategic collaboration. Building on their existing partnership in hydrogen and renewable natural gas, the collaboration will now include other renewable fuels like renewable gasoline blends, biodiesel, and renewable diesel. This initiative aims to promote the adoption of lower-carbon fuels in North America's commercial and industrial sectors, leveraging their complementary strengths in the fuel value chain.

In October 2023, Chevron Corporation announced a definitive agreement to acquire Hess Corporation in an all-stock transaction valued at $53 billion, or $171 per share based on Chevron’s October 20, 2023 closing price. Under the terms, Hess shareholders will receive 1.0250 shares of Chevron for each Hess share. Including debt, the total enterprise value of the transaction is $60 billion. This strategic acquisition aims to enhance Chevron's portfolio and expand its global reach in the energy sector.

Key Findings of the Study:

• The gasoline segment is expected to dominate the market, accounting for approximately 43% of total sales by the end of the forecast period.
• The In-Situ method led the market in 2023, representing around 63.2% of the market share, due to its efficiency and continuous technological advancements.
• North America is expected to dominate the global Oil Shale Market by 2025, driven by increased U.S. oil production and the demand for cheaper energy alternatives.