The Global Oil Shale Market was worth USD 3.54 billion in 2023 and is projected to reach a valuation of USD 7.0 billion by 2032 from USD 3.82 billion in 2024. It is predicted to register a CAGR of 7.87% during the forecast period.
Oil shale is a sedimentary rock that contains huge concentrations of kerogen, or fossil organic materials. It is used to extract liquid shale oil, which is then used in the advanced processing of fuel oil, such as gasoline, diesel, natural gas, liquid petroleum gas (LPG), and other hydrocarbons. Its by-products, such as ammonia, Sulphur, alumina, soda ash, and nahcolite, can be used to make commercial items. Currently, wasted oil shale is widely used in cement manufacturing around the world.
During the forecast period, the oil shale market is expected to rise rapidly. The expanding demand for energy, the depletion of non-renewable energy sources, the fluctuating cost of fuel, and the long-term cost-benefit of using oil shale over conventional energy sources are all contributing to the market's rise. However, problems such as high oil shale extraction costs, low carbon content, and environmental concerns such as mining land disturbance, global warming, and greenhouse gas emissions could limit the market's expansion. Within the oil shale business, research and development to reduce the environmental effects and discover strategies to reduce production costs could open up major potential opportunities for the market.
Increased car sales as a result of rising income levels and expanding urbanization also have an impact on the market. Furthermore, rising energy consumption and the development of new power plants are boosting demand for shale oil around the world, bolstering the market growth. Shale oil can be used as a boiler fuel in a furnace to generate steam for power generation. Furthermore, considerable growth in global construction activity is pushing up demand for cement and other materials, which is propelling the market.
In addition, improvements in drilling techniques and the introduction of novel mining and retorting technology are contributing to lowering total operating costs. This, together with the development of innovative in-situ methods for shale oil extraction and the increased use of geospatial infrastructure to manage enormous volumes of oil shale data, is expected to propel the overall market forward.
During the drilling process, methane gas emissions represent a risk of air pollution. Furthermore, improper disposal of huge amounts of chemically treated water used in hydraulic fracturing operations has the potential to contaminate surface water. Environmentalists and non-governmental organizations (NGOs) from all around the world have expressed their displeasure with this. Local farmers and locals have consistently resisted hydraulic fracturing due to its negative impact on health and agriculture. Furthermore, during fracking operations, a typical fracking well consumes roughly 2-10 million gallons of water, putting further strain on the water supply, particularly in drought-prone areas. As a result, the market is likely to be restrained during the projection period due to rising environmental concerns.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 to 2032 |
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Base Year |
2023 |
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Forecast Period |
2024 to 2032 |
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CAGR |
7.87% |
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Segments Covered |
By Product, Technology, Process, Application, and Region. |
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Various AnalysCovered |
Global, Regional, and country-level analysis; Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
Exxon Mobil Corporation, Chevron Corp., Royal Dutch Shell PLC, Marathon Oil Corporation, Occidental Petroleum Corporation., American Resources Inc., AuraSource Inc., Eesti Energia AS, Queensland Energy Resources, and Others. |
The shale gasoline segment dominated the global oil shale market share in 2023, and it is expected to continue to grow at the quickest rate over the forecast period. This is due to its advantages since it is widely employed in the generation of energy, accounting for over a quarter of all electricity generated in the United States.
The in-situ category dominated the worldwide oil shale market by technology in 2023, and it is expected to continue to grow at the quickest rate during the forecast period. Since then, this technology has been widely used; in-situ retorting is the only way to achieve large-scale industrial exploitation.
The oil shale exploration segment dominated the global oil shale market by a process in 2021, and it is expected to continue to grow at the quickest rate throughout the forecast period. Since oil shale is originally recovered from the earth by surface or underground mining, this is linked to its efficacy. To release the shale oil, the rock is crushed and then retorted (heated). Impurities like sulfur are then removed from the shale oil. Shale oil extraction in situ is a new and experimental approach.
The fuel category dominated the worldwide oil shale market by application in 2023, and it is expected to continue to grow at the quickest rate throughout the forecast period. This is due to the rising population and greater reliance on fossil fuels.
The value of Singapore's oil and gas market fell by 43.6% in 2021 as the COVID-19 epidemic lowered demand and caused oil and gas prices to plummet. In 2022, strong growth is expected as oil and gas demand recovers, driving up prices.
In recent years, the value of the Australian oil and gas industry has plummeted while volume growth has slowed. However, as crude oil prices are predicted to rise, this market should drastically improve in the future.
North America dominated the global oil shale market in 2023, and as per the estimation, it will continue to grow at the quickest rate over the period 2024-2019. This is due to a variety of variables, including huge proven reserves, innovative hydraulic fracturing applications, and horizontal drilling and development of new oil shale sources. The Permian basin is the United States' greatest source of shale oil. Multinational corporations are likely to invest in the market, and output will rise throughout the projection period.
The value of the UK oil and gas market fell by 43.4% before 2021, as the COVID-19 pandemic lowered demand and caused oil and gas prices to plummet. In 2023, strong growth is expected as oil and gas demand recovers, driving up prices. The oil shale market is likely to continue to grow strongly for the forecast period.
South Africa currently has few proven gas reserves; hence, it imports the majority of its natural gas through a pipeline from Mozambique. However, the country has potentially huge shale gas reserves, which could fuel future natural gas use. Shale gas development has been hampered so far by regulatory delays and technical challenges. Coal continues to account for a considerable portion of the country's primary energy consumption, which is on the rise. Coal is still the most popular fuel in South Africa, accounting for 71% of total use.
Companies playing a prominent role in the global oil shale market include Exxon Mobil Corporation, Chevron Corp., Royal Dutch Shell PLC, Marathon Oil Corporation, Occidental Petroleum Corporation., American Resources Inc., AuraSource Inc., Eesti Energia AS, Queensland Energy Resources, and Others.
By Product
By Technology
By Process
By Application
By Region
Frequently Asked Questions
Oil shale is primarily used for producing shale oil, a synthetic crude oil alternative. It is also utilized in electricity generation, as a heating source, and in certain industrial processes requiring carbon-rich materials.
Technologies such as hydraulic fracturing (fracking) and in-situ retorting are pivotal in enhancing the efficiency and reducing the environmental impact of oil shale extraction, thereby driving market growth.
Factors such as fluctuating crude oil prices, growing energy demands, advancements in extraction technologies, and increasing interest in alternative energy sources are driving market growth.
The market is expected to grow steadily due to increasing energy demand and technological advancements. However, its long-term sustainability will depend on addressing environmental concerns and aligning with global shifts toward cleaner energy sources.
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