Wednesday 13 April 2016 2:22 pm

Global shale gas market expected to hit $214bn by 2022

The world's shale gas market could swell to $214bn (£150.2) in just a few years time.

This would come as global shale gas grows at an annual compound rate of 14.4 per cent from 2015 to 2022, according to the report by Allied Market Research.

Similarly, the world's thirst for shale gas is expected to increase at an annual compound rate of 12.6 per cent during this period.

Read more: Government to fast track plans for UK fracking

Despite a Saudi Arabia-led initiative to price low cost producers out of the market, North America will still remain the highest revenue-generating region, the report said.

But Europe will have the highest compound annual growth rate of 59.5 per cent in terms of volumes, due to the presence of shale gas reserves in more than 14 countries and rising demand for natural gas.

Nevertheless, it will have to overcome regulatory hurdles which have caused governments to partially ban or delay the hydraulic fracturing technique used to get shale out of the ground due to concerns over water scarcity.

Read more: Fracking could help the UK meet its low carbon targets, says report

While there's a string of shale gas reserves around the world, it's only being produced in the US, Canada and China.

"Shale gas is emerging as an ideal energy source, owing to its abundance, low carbon foot print and comparatively low price than conventional energy source such as natural gas, coal, nuclear and hydro," it said.

"However, the issue of water scarcity due to hydraulic fracturing technique may hamper its production. Moreover, the unstructured regulatory framework in the European countries may dampen its producers to some extent."