Unconventional Gas Market Regional Analysis

What Drives Unconventional Gas Production Growth in North America?

As per the 2024 unconventional gas market regional forecast, with cutting-edge technologies such as hydraulic fracturing, North America continues to be the largest and most dynamic market. Shale gas production is still on the rise in the United States, and Texas leads the pack. By 2025, as exploration expands and new technology facilitates production, the region will remain at the leading edge. To improve production, ExxonMobil and Chevron are making significant investments in new-age extraction methods.

U.S. Unconventional Gas Market

The U.S. is now the world's leading producer of shale gas and has transformed the unconventional gas industry, particularly by hydraulic fracturing. Over 70% of worldwide shale production was poised to stay within the United States in 2024, and with enhanced automation and artificial intelligence (AI) to enhance productivity, this number is poised to increase in 2025. To improve location and production rates, for instance, EOG Resources is blending AI and large data analysis.

Canada Unconventional Gas Market

Canada possesses enormous amounts of unconventional gas, most notably in the Duvernay and Montney reservoirs. As extraction processes continue to be enhanced in efficiency by technology, its production will increase. In 2024, Encana announced it will invest USD 1.5 billion in Alberta to increase Alberta's shale gas production. With growing domestic demand and exports to the United States, the Canadian market will continue to expand and remain an important part of North American gas production through 2025.

What Challenges and Opportunities Lie Ahead for Europe’s Unconventional Gas Market?

Relative to North America, the European unconventional gas sector has expanded at a slower pace. Though Poland and the UK are plausible sites, big-ticket manufacturing has been held back by political opposition and regulatory challenges. However, a review of fracking laws by the UK government may encourage small-scale growth. Poland is stepping up its efforts to utilize its shale assets in the meantime, however public opinion uncertainty will continue to be a barrier until 2025.

UK Unconventional Gas Market

Although the UK is rich in shale gas reserves, especially in the Bowland Basin, hydraulic fracturing has been suspended because of protests and fear of environmental damage. In 2024, the UK government made an offer that if shale gas production safety could be proven by science, it would relax regulations. If fracking is less controversial by 2025, IGas Energy is set to resume exploratory drilling soon, possibly boosting shale output.

France Unconventional Gas Market

France has prohibited hydraulic fracturing since 2011, thus shutting its unconventional gas market. Having huge shale gas reserves, the country is choosing to turn towards renewable energy to minimize its dependency on fossil fuels. The France's unconventional gas market will not grow as the country's focus is drawn towards green technology and energy transition programs such as the Energy Transition Law.

Germany Unconventional Gas Market

Germany can produce a little shale gas, but it has been hindered by environmental issues and legal restrictions. The government has taken a balanced step, preferring renewable energy projects over fossil fuels. Germany's unconventional gas market will be stagnant due to limited development and production. In a bid to significantly minimize its use of fossil fuels, the nation is instead trying to construct E. ON's clean energy projects.

What Role Does Asia-Pacific Play in the Global Unconventional Gas Market?

With China and Australia taking a lead in the exploration work, Asia-Pacific is increasingly playing a key role in the unconventional gas market. The market is growing as a result of the region's massive untapped reserves of gas in coal seam gas and shale gas and increasing demand for electricity. Asia-Pacific will supply much of the world's unconventional gas by 2025, with continued investment in extraction techniques, such as those being developed by firms like Santos in Australia.

Australia Unconventional Gas Market

Australia possesses large reserves of unconventional gas, especially coal seam gas (CSG) in basins such as the Surat and Bowen Basins. Australia has emerged as a leading player in the international energy market through investment in infrastructure to meet its own energy requirements as well as LNG exports. Santos spent heavily at USD 3 billion to drive CSG production in 2024. Australia will expand its unconventional gas production through to 2025 because of innovation in drilling technologies to make regional energy security a possibility.

China Unconventional Gas Market

China is home to the world's biggest unconventional gas reserves, including coal bed methane (CBM) and shale gas. China is developing its unconventional gas resources aggressively in reaction to growing domestic energy demand and efforts to decrease the use of coal. China National Petroleum Corporation (CNPC) is spearheading large-scale shale gas drilling in 2024 with the aim of enhancing production. With drilling and extraction technology, China will significantly improve its production of unconventional gas by 2025, lowering imports and increasing its energy security.