The global fracking fluid and chemicals market to grow at a CAGR of 9.9% during the period 2017-2021.
The report covers the present scenario and the growth prospects of the global fracking fluid and chemicals market for 2017-2021. To calculate the market size, the report considers the revenue generated from the sales of fracking fluid and chemicals. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.
Fracking fluids are a complex mixture of chemicals, water, and sand. The composition of fracking fluids is unique to each company; they alter the composition of fracking fluids depending on the presence of groundwater or surface water. The selection of the fracking fluid mix is also dependent on the region and guidelines mandated by local and state governments.
Refracturing of shale wells is a current trend in the oil and gas exploration segment. The operators can adopt the newest technology to older wells, thereby increasing the production without incurring the costs of a new well. Old well or underperforming well production is stopped and then refracked using hydraulic simulation. The application of refracking of horizontal shale wells is still in the initial phases.
According to the report, the exploration of oil and gas in the Americas, especially in the US and Canada is on the rise. Therefore, the region held the largest share in the fracking fluid and chemicals market. In 2015, 51% of the oil and gas produced in the US was from hydraulically fractured wells. According to EIA, in 2015, there were about 300,000 hydraulically fractured wells in the US, which yielded more than 4.3 million barrels of oil per day. In the same year, Canada was expected to have technically recoverable wet shale gas of about 572 trillion cubic feet.
Further, the report states that the rise in the prices of raw materials (hydrogen chloride, biocides, guar gum, and borate salts) used for manufacturing fracking fluids and chemicals may hamper the growth of the global fracking fluid and chemicals market. The rising cost of raw materials has also increased the operating costs of the vendors. Market competition also limits the option to increase product prices to compensate for their higher production costs. In addition, price fluctuations and non-availability of raw materials could impact the cost of the products and the operations of the vendors in the market.