According to a new report published by Introspective Market Research, titled, “Tight Gas Market by Type and Application: Global Opportunity Analysis and Industry Forecast, 2024–2032,”
Global Tight Gas market size was valued at $ 38.99 billion in 2023 and is projected to reach $63.72 billion by 2032, registering a CAGR of 6.6% from 2024 to 2032.
The rise in government policies regarding tight gas exploration and production reflects the recognition of its potential as an energy resource amidst increasing energy demand. Also referred to as shale gas, tight gas is a form of natural gas trapped within underground rock formations with low permeability. Several factors, including the imperative of energy security, the pursuit of economic growth, and considerations regarding environmental sustainability drive these policies. Governments worldwide are enacting stricter environmental regulations to ensure responsible extraction practices within the tight gas industry.
These regulations aim to address concerns such as water contamination and air pollution associated with hydraulic fracturing operations. Additionally, they often mandate transparency from companies regarding the chemicals used in the fracking process and require monitoring and reporting of environmental impacts. By imposing such regulations, governments aim to strike a balance between harnessing the potential of tight gas reserves and safeguarding environmental and public health interests.
In this evolving regulatory landscape, companies involved in tight gas extraction are compelled to adopt cleaner and more sustainable practices. These include implementing advanced technologies for reducing water usage and emissions, enhancing well integrity to prevent leakage, and adopting practices for responsible waste disposal. Compliance with regulatory requirements not only helps mitigate environmental risks but also enhances the industry's credibility and fosters public trust in the sustainable development of tight gas resources.
Global Tight Gas Market, Segmentation
The Tight Gas market is segmented based on Type, Application, and Region.
Type:
The packaging type segment is further classified into Processed Tight Gas, Unprocessed Tight Gas. Among these, the Processed Tight Gas sub-segment accounted for the highest market share in 2023. Processed tight gas denotes natural gas extracted from tight reservoirs that have undergone diverse treatment processes aimed at eliminating impurities and contaminants. Widely utilized across residential, commercial, and industrial sectors, processed tight gas is frequently transported via pipelines to end-users or converted into alternative energy forms, such as electricity. It is favored in scenarios necessitating high-quality natural gas due to its reduced impurities and enhanced compatibility with existing gas distribution networks.
Application:
The application segment is further classified into Industrial, Power Generation, Residential, Commercial, and Transportation. Among these, the Power Generation sub-segment is anticipated to show the fastest growth by 2032. In terms of application, the power generation sector segment emerged as the dominant player, holding the largest share. The utilization of tight gas in power generation has witnessed substantial growth for several compelling reasons, with indications pointing towards a continuation of this trend in the foreseeable future. Tight gas, characterized by natural gas confined within low-permeability rock formations, has seen an upsurge in its utilization. The considerable reserves of tight gas represent a significant fraction of the world's natural gas resources.
Region:
The Tight Gas market in Asia-Pacific is projected to show the fastest growth by 2032. The tight gas sector in the Asia-Pacific region has been undergoing substantial growth, driven by several pivotal factors, with its prospects set for further expansion. Tight gas, commonly found in unconventional reservoirs characterized by low permeability, has garnered increasing appeal. The Asia-Pacific region has experienced rapid industrialization and urbanization, resulting in a notable surge in energy consumption. In response, tight gas reservoirs are being recognized as a valuable resource to address this escalating demand, providing a locally sourced energy solution.
Some of The Leading/Active Market Players Are-
- Marathon Oil Company (US)
- Devon Energy Corporation (US)
- EOG Resources, Inc. (US)
- ConocoPhillips (US)
- Occidental Petroleum Corporation (US)
- Chesapeake Energy (US)
- Southwestern Energy (US)
- Chevron (US)
- CNPC (US)
- Exxon Mobil (US) and Other Active Players
Key Industry Developments
- In January 2024, Evolution Petroleum Corporation (NYSE American: EPM) announced that it had entered into definitive agreements to acquire non-operated oil and natural gas assets in the SCOOP and STACK plays in central Oklahoma (the "Acquisitions") from Red Sky Resources III, LLC, Red Sky Resources IV, LLC, and Coriolis Energy Partners I, LLC. The combined purchase price of the Acquisitions was $43.5 million in cash.
- In November 2023, Aramco produced its first unconventional tight gas at South Ghawar ahead of schedule, marking a significant milestone for the company. The achievement, accomplished two months earlier than anticipated, underscores Aramco's commitment to enhancing its gas production. As one of the world's leading integrated energy and chemicals companies, Aramco aims to boost gas production by more than 50% compared to 2021 levels by 2030
Key Findings of the Study
- The global tight gas market is projected to grow significantly from $38.99 billion in 2023 to $63.72 billion by 2032, at a compound annual growth rate (CAGR) of 6.6% from 2023 to 2032.
- Processed tight gas, utilized across residential, commercial, and industrial sectors, accounted for the highest market share in 2023. In terms of application, power generation is anticipated to show the fastest growth by 2032.
- Companies involved in tight gas extraction are adapting to the evolving regulatory landscape by adopting cleaner and more sustainable practices.
