Middle East & Africa Hydraulic Fracturing Market Outlook, 2029

The application of hydraulic fracturing in the Middle East and Africa (MEA) region presents a unique picture within the global market. While hydraulic fracturing has revolutionized oil and gas production in North America, its adoption in the MEA region is a more recent phenomenon and is characterized by a cautious approach and a focus on navigating a complex geopolitical landscape. One of the most intriguing aspects of the MEA hydraulic fracturing market lies in the diversity of resource potential and varying government stances. The region boasts significant reserves of unconventional resources, particularly shale gas and tight oil, in countries like Algeria, Egypt, and Oman.

These resources offer the potential to enhance the region's energy security and diversify its energy mix. However, governments within the MEA exhibit varying degrees of enthusiasm towards hydraulic fracturing. Some countries, recognizing the potential economic benefits and energy security advantages, are cautiously exploring the use of this technology. For instance, Algeria has initiated pilot projects to assess the viability of hydraulic fracturing for shale gas exploration. On the other hand, some governments in the MEA region remain apprehensive about hydraulic fracturing due to environmental concerns.

The potential for water contamination, seismic activity, and air pollution associated with this technology has led to stricter regulations and a wait-and-see approach in certain countries. These environmental anxieties are often amplified by the presence of vast, established conventional oil and gas reserves in some MEA countries. The ability to meet energy needs through existing resources makes them less reliant on unconventional resources and potentially less inclined to embrace hydraulic fracturing.

According to the report, the Middle East and Africa Hydraulic Fracturing market is anticipated to grow at more than 6% CAGR from 2024 to 2029. One of the most intriguing aspects of the MEA hydraulic fracturing market lies in the strategic focus of national oil companies (NOCs). Unlike North America, where the private sector drives hydraulic fracturing activity, NOCs play a central role in the MEA region. These state-owned entities are responsible for a significant portion of oil and gas exploration and production (E&P) activities.

Their strategic decisions regarding resource development, technology adoption, and collaboration with international service providers heavily influence the growth trajectory of the hydraulic fracturing market in the MEA region. This focus on NOCs presents both opportunities and challenges. On the one hand, NOCs have the resources and influence to invest in necessary infrastructure, acquire expertise, and drive the adoption of hydraulic fracturing technology. Several NOCs in the region have expressed interest in shale gas exploration and development, recognizing its potential to bolster energy security and diversify their hydrocarbon sources.

Additionally, NOCs can leverage their existing infrastructure and expertise in conventional oil and gas production to facilitate the integration of hydraulic fracturing operations. However, the involvement of NOCs also presents challenges. Bureaucratic processes, a focus on national interests, and potential concerns regarding technology transfer can create hurdles for collaboration with international oilfield service companies (OSCs) that possess the necessary expertise and experience in hydraulic fracturing. Finding the right balance between leveraging NOCs' resources and fostering collaboration with experienced OSCs will be crucial for unlocking the full potential of hydraulic fracturing in the MEA region.

Market Drivers

• Urgent need for energy diversification: The region is heavily reliant on hydrocarbon resources, particularly oil and gas, to meet its energy demands. However, fluctuating oil prices and a growing focus on energy security are prompting governments to explore alternative sources of domestic energy production. Hydraulic fracturing offers a potential solution by unlocking vast reserves of unconventional oil and gas, particularly shale gas, which are abundant in some parts of the MEA region. By developing these unconventional resources, countries can reduce dependence on imported fuels and enhance their overall energy security.
• Advancements in hydraulic fracturing technology: The technology has undergone significant improvements in recent years, with a focus on efficiency, environmental considerations, and cost-effectiveness. These advancements are particularly relevant for the MEA region, where geological complexities and environmental concerns exist. The availability of more targeted fracturing techniques, lower water usage methods, and "green" fracturing technologies can address some of the challenges associated with this practice and make hydraulic fracturing a more viable option for unlocking unconventional resources in the MEA.

Market Challenges

• Limited availability of water resources: One of the most pressing challenges is the limited availability of water resources in many MEA countries. Hydraulic fracturing is a water-intensive process, and the large volumes of water required can pose a significant strain on already scarce water resources. Developing and implementing robust water management strategies, such as water recycling and reuse technologies, is crucial for mitigating this challenge. Additionally, exploring alternative fracturing fluids that require less water or even waterless fracturing techniques can be potential solutions for the MEA market.
• Environmental regulations and public perception: Hydraulic fracturing has been linked to environmental concerns such as water contamination, induced seismicity, and air pollution in other parts of the world. These concerns are present in the MEA region as well, and some countries have adopted a cautious approach towards hydraulic fracturing due to these environmental anxieties. Developing and enforcing stringent regulations that prioritize environmental protection and public safety is essential for building trust and obtaining social license to operate for hydraulic fracturing projects in the MEA. Transparency, open communication, and a commitment to responsible practices are crucial for addressing public concerns and ensuring the sustainable development of this technology.

Based on the report, the Hydraulic Fracturing market is segmented into Water-Based, Oil-Based and Foam-Based on the basis of fluid type.

Based on the report, the Hydraulic Fracturing market is segmented into Horizontal and Vertical on the basis of well type.

When it comes to segmentation by fluid type, water-based fracturing fluids are expected to remain the dominant choice in the MEA market for the foreseeable future. This dominance can be attributed to several factors. Firstly, the abundance of freshwater resources in some parts of the MEA, particularly the Nile basin countries, makes water-based fluids a cost-effective option. Secondly, stricter environmental regulations in some MEA nations are pushing operators towards water-based fluids due to concerns regarding the potential environmental impact of oil-based fluids, particularly related to proper disposal of used fluids. However, the availability of freshwater resources varies significantly across the MEA region.

Water-scarce countries within the region, such as those in the GCC (Gulf Cooperation Council), might opt for alternative fracturing fluids like oil-based or foam-based fluids. Oil-based fluids offer superior proppant carrying capacity and can be advantageous in deeper or more complex well formations. However, their higher cost and stricter environmental regulations around disposal limit their widespread adoption in the MEA. Foam-based fracturing fluids, on the other hand, represent an emerging segment with promising potential in the MEA market. These fluids offer a middle ground between water-based and oil-based fluids, combining some of the performance benefits of oil-based fluids with the environmental advantages of water-based systems.

Foam-based fluids are particularly well-suited for formations with high water sensitivity, where traditional water-based fluids can damage the rock matrix. Additionally, they can be effective in reducing formation fluid production during the fracturing process, minimizing water usage and disposal requirements. However, the technology for foam-based fracturing is still evolving, and its adoption in the MEA market will likely depend on further cost optimization and successful field trials demonstrating its effectiveness in specific geological conditions. The "Others" segment within fluid type includes acid-based fracturing fluids and hybrid fluids.

Acid-based fluids are used for wellbore stimulation by dissolving formation damage and enhancing well productivity. Their use in the MEA market is expected to be limited due to their corrosive nature and stringent regulations around handling and disposal. Hybrid fluids, combining elements of different fluid types, might see niche applications in the MEA market for addressing specific wellbore challenges. The segmentation by well type in the MEA hydraulic fracturing market is likely to be heavily influenced by the geological formations targeted for unconventional resource development. Horizontal wells are anticipated to be the dominant well type for hydraulic fracturing operations in the MEA region.

Shale formations, a primary target for unconventional oil and gas resources, are often characterized by low permeability and require horizontal drilling with multiple lateral sections to maximize reservoir contact. This makes horizontal wells the preferred choice for efficient fracturing stimulation and economic hydrocarbon recovery. However, vertical wells might still be used in specific scenarios within the MEA market. These scenarios could include targeting conventional reservoirs or exploring unconventional resources in tight formations where horizontal drilling might not be technically feasible or economically viable. Additionally, some countries within the MEA, particularly those in the early stages of developing their unconventional resources, might utilize vertical wells for pilot projects or exploratory drilling before transitioning to horizontal wellbores for full-scale production.

Based on the report, the Hydraulic Fracturing market is segmented into Plug & Perf and Sliding Sleeve on the basis of technology.

Based on the report, the Hydraulic Fracturing market is segmented into Shale Gas, Tight Oil and Tight Gas on the basis of application.

By technology, the MEA hydraulic fracturing market is likely to be dominated by Plug and Perf (PnP) for the foreseeable future. PnP is a well completion technique that involves perforating the wellbore casing and stimulating multiple zones along the wellbore length with hydraulic fracturing. This method is particularly suited for the complex and heterogeneous formations encountered in the MEA region. Unlike North America, where advancements in wellbore completion technologies have led to the wider adoption of Sliding Sleeve systems, the MEA market is still in its early stages of unconventional resource development.

PnP offers a simpler and more cost-effective approach, making it favorable for initial exploration and development of shale and tight resources. However, as the industry matures and strives for wellbore optimization, a gradual shift towards Sliding Sleeve technology might be observed in specific applications. Sliding Sleeves offer greater zonal isolation and control during the fracturing process, potentially leading to improved well performance and production efficiency. When considering segmentation by application, the MEA hydraulic fracturing market presents a unique picture. While shale gas is often the primary target in established markets like North America, the MEA region exhibits a more diverse landscape.

Tight oil development is expected to be a significant driver in the short to medium term. Countries like Oman possess substantial reserves of tight oil, and hydraulic fracturing offers a viable solution for unlocking these resources. Shale gas development is also gaining traction, with countries like Algeria and Morocco exploring their shale gas potential. However, the complex geology of these shale formations, often characterized by lower permeability and higher clay content compared to North American shale plays, necessitates a more cautious approach. Tight gas resources also hold promise in the region, with countries like Egypt looking to utilize hydraulic fracturing to enhance production from existing tight gas formations.

Finally, the "Others" segment within the application category deserves mention. While not a dominant force currently, Coalbed Methane (CBM) extraction through hydraulic fracturing offers possibilities in specific regions with proven CBM reserves. Additionally, Enhanced Geothermal Systems (EGS) could emerge as a niche application in the future, leveraging hydraulic fracturing to improve permeability in geothermal reservoirs and enhance heat extraction for power generation.

Based on the report, the major countries covered include the UAE, South Africa, Saudi Arabia, and the rest of the Middle East and Africa.

Saudi Arabia's position as the leader in the hydraulic fracturing (fracking) market within the MEA (Middle East and Africa) region can be attributed to a unique confluence of factors. Firstly, the Kingdom possesses the world's second-largest proven oil reserves, surpassed only by Venezuela. This vast resource base, coupled with Saudi Arabia's status as a leading oil producer and exporter, necessitates continuous exploration and development activities to maintain production levels and meet future global energy demands. Hydraulic fracturing, a well stimulation technique that enhances oil and gas production from unconventional reservoirs, has emerged as a critical tool for unlocking these resources in Saudi Arabia.

Secondly, the discovery of the Jafurah unconventional gas field presents a significant growth driver for the Saudi Arabian fracking market. Jafurah, covering an area of approximately 17,000 square kilometers, is estimated to hold a staggering 200 trillion standard cubic feet of natural gas. Developing this unconventional resource requires extensive fracking operations, creating substantial opportunities for companies specializing in fracking technologies and services. The Saudi Arabian government has already announced plans to invest heavily in the Jafurah project, further propelling the growth of the domestic fracking market.

Furthermore, Saudi Arabia's Vision 2030, a strategic framework aimed at diversifying the economy and reducing dependence on oil, plays a role in the fracking market's development. A key aspect of this vision is the development of a robust natural gas industry. Fracking technology enables the production of shale gas, a cleaner-burning alternative to traditional oil, which aligns with Saudi Arabia's goal of transitioning towards a more sustainable energy mix. Additionally, the natural gas produced through fracking can be used for various industrial applications, promoting economic diversification and reducing reliance on oil exports. It's important to acknowledge that the Saudi Arabian fracking market is not without its challenges.

Environmental concerns regarding water usage and potential seismic activity associated with fracking require careful management and adherence to strict regulations. The Saudi Arabian government is actively addressing these concerns by implementing best practices and stringent environmental regulations for fracking operations. Additionally, the reliance on foreign expertise and technology within the domestic fracking sector presents an opportunity for knowledge transfer and the development of local capabilities in the long run.

Years considered in this report:

• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in the report:

• Hydraulic Fracturing market outlook with its value and forecast, along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Fluid Type:

• Water-Based
• Oil-Based
• Foam-Based
• Others (Acid-Based Fluids and Hybrid Fluids)

By Well Type:

• Horizontal
• Vertical
• By Technology
• Plug & Perf
• Sliding Sleeve

By Application:

• Shale Gas
• Tight Oil
• Tight Gas
• Others (Coalbed Methane (CBM), Enhanced Geothermal Systems (EGS))

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. After this, the research team made primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once the research team attained the primary data, they verified the details obtained from secondary sources.

Intended Audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Hydraulic Fracturing industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.