Plunge in Demand of Shale Gas in U.S. will Adversely Influence Adsorbents Market.
The U.S. fracking revolution has become a victim of its own success. The controversial boom in shale gas and oil has not only, driven the US economic recovery but also lowered the world crude prices, which means shale operations no longer help in the development. Rigs across the U.S. are being closed at a rate of approximately 100 a week on average recently.
According to the data from the recent past, fracking oil is all set to hit a supply over the demand ratio, and hence some rigs are temporarily shut down in the U.S. currently. According to U.S. Energy Information Administration (EIA), there is an incline of 52% in the total number of oil rigs in the U.S. in 2015, when compared to 2014. The reason accrediting to this situation is the dropping prices of oil, which has formed a trouble in the supply demand balance, subsequent in the closure of new oil rigs in the U.S. The cease of production was necessary to improve the world oil prices. According to a recent estimation by EIA, the production of oil per rigs has plunged, when compared for a period of two months in 2015. Below table shows the percentage dip in the production of oil.
The plunge in world oil prices might have virtually hampered the growth of world’s great engine of supply, but the U.S. still continues to be the major market for fracking. With the recovery of oil prices, U.S. would definitely get back to fracking. Hence the market would again grow after a little dip.
Hence, closing down of refineries and shale gas activities is foremost restraint which is all set to thwart the adsorbents market as adsorbents derive its vital application into the oil and gas segment.
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