HYDRAULIC FRACTURING MARKET Challenges and Opportunities

Hydraulic fracturing requires massive amounts of water, as high as 5 million gallons per fracturing site. The disposal of this contaminated water has led to major environmental concerns. There have been various reported cases such as The Environmental Protection Agency (EPA) conducted a study in Pavillion and found evidence of groundwater contamination linked to hydraulic fracturing. of water contamination of surface and groundwater from fracking fluid migration and spillages. Finding alternative water sources and ensuring proper treatment and disposal of produced water remains a key challenge for the industry. Transitioning to practices that minimize water usage and reuse produced water where possible would help address growing concerns around the sustainability of water resources.

Market Opportunity - Expansion of shale gas exploration in emerging markets

The expansion of shale gas exploration and production in emerging markets presents significant opportunities for growth in the market. Countries like China, Argentina, and South Africa have sizable shale reserves that are increasingly being tapped. As these nations seek to expand domestic energy production and replace coal with cleaner natural gas, the demand for fracking services and equipment is expected to rise tremendously. Global service companies such as Schlumberger and pressure pumping firms are actively pursuing opportunities in these new shale frontiers. However, the markets are still in nascent stages with considerable investments required in infrastructure and skilled workforce.