Global Enhanced Oil Recovery Market by Technology (CO2 Injection, Thermal), by Application (Onshore, Offshore) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global enhanced oil recovery market was valued at USD 46.4 million in 2019. It is projected to grow at a compound annual rate (CAGR of 3.7%) between 2020 and 2027. The market will be driven by an increasing number of older wells and decreasing production from existing oilfields over the forecast period. EOR technology increases oil production from older oil fields by approximately 10 to 20% compared to conventional methods of oil extraction. Mature wells refer to oil reserves that have reached their peak production and are now in decline due to low permeability or heavy oil. EOR is a technique that increases the reservoir's permeability so that hydrocarbons flow easily through the pipelines and into the producing well.

Due to the increasing exploration of unconventional oil-and-gas resources, the U.S. market will experience significant growth. The industry will also benefit from government funding for the commercialization of EOR technology. The U.S. Department of Energy (DoE), for example, provides funding for universities and private companies to conduct research on EOR technology advancements.

In the U.S., there were a lot of CO2 injection-based EOR project that started between 2017 and 2020. This resulted in CO2 injection technology having a dominant share over all other technology. The use of CO2-EOR technology has led to a notable increase in oil production in Permian Basin. These developments will likely boost the U.S. EOR market's growth over the forecast period.

The oil and gas industry is likely to suffer from falling crude oil prices, which could have a negative effect on its growth. In 2020, oil prices have fallen sharply due to the COVID-19 pandemic. This led to a reduction in planned capital expenditures and the implementation of cost-cutting measures by oil companies around the world, which will likely slow down market growth.

However, increasing concerns about carbon emissions have led to increased demand for the Carbon Capture and Storage market (CCS), which has emerged as a viable option to reduce carbon emissions. These factors will positively impact the market, as the captured carbon from CCS projects is often used by oil and gas companies for CO2 injection EOR technology.

Technology Insights

In 2019, the thermal technology segment held 39% of the market. This method involves the application heat to the oil wells in order to lower the oil viscosity or increase its mobility. This is most commonly used in shallow wells that have higher viscosities, such as heavy oil or tar sand. This technology is used in many countries including the U.S., Canada and Oman.

The CO2 injection technology is expected to have the fastest CAGR over the forecast period. To recover crude oil, it injects CO2 into rock pores. It is easily mixed with crude oil and costs less than similar miscible fluids, making CO2 a popular choice for EOR applications. This technology is also highly sought after because of its significant environmental benefits.

Stringent government regulations regarding oil industry emissions are driving increased adoption of CCS technology. This technology uses carbon from oil refineries to capture and inject it into depleting oilfields in the EOR process. These factors will increase the growth of the CO2 injection technology segment.

Chemical EOR technology uses polymers and surfactants that are injected into the oil well. This reduces interfacial pressure, increases flooded viscosity and increases oil well production. EOR technology based on chemical substances is used in Canada, Russia, Colombia, and China.

Application Insights

In 2019, the onshore segment held the largest market share at over 89%. This is due to the existence of many onshore exploration projects and production projects around the globe. The segment has seen a decrease in conventional oilfield extraction costs than for offshore oilfields. This has led to its growth.

This segment will grow at the fastest CAGR between 2020 and 2027. EOR techniques are being used in conventional onshore basins. This is despite declining production levels in China, Russia, Saudi Arabia, and Russia. These factors will positively impact the segment's growth.

Over the forecast period, offshore segment growth will be driven by the steady development of existing offshore wells, particularly in the South China Sea and the Persian Gulf, North Sea, Gulf of Mexico. Operators such as BP and Statoil are testing the technoeconomic feasibility of EOR in offshore oil fields.

The high capital investment and high operating costs, combined with the pandemic impact, will slow down growth in the offshore oil sector. These factors will hinder the growth of offshore oil industry. However, the industry will continue to grow due to technological advances in the offshore segment.

Regional Insights

North America dominated the global oil and gas industry in 2019, accounting for more than 38% of global share. The U.S. was the main contributor to the region's market. This growth is due to the existence of many unconventional oil and gas resources in the country and matured fields, which require advanced extraction techniques to increase production from existing wells. EOR technology is also being used by leading oil and gas exploration companies in Canada to extract oil from the fields.

The technology will be commercialized further by government funding. In 2019, for example, the U.S. Department of Energy announced USD 40,000,000 funding for research and development activities aimed to reduce the technical risk associated with enhanced oil recovery and expand EOR application across conventional and unconventional reservoirs.

Asia Pacific is expected to experience the fastest growth rate during the forecast period. China holds the largest market share in the region. The Asia Pacific market is expected to grow due to rising oil and gas demand from major economies like China and India, as well as the increased use of EOR in older wells to meet production targets.

Oman led the Middle East & Africa enhanced oil recovery market in 2019. It is expected to continue its leadership in the future. The market will see a rise in new EOR projects in countries like Saudi Arabia, UAE and Qatar.

Market Share Insights & Key Companies

Multinational companies make the market highly competitive and moderately well-consolidated. Oil & Gas exploration companies purchase raw materials from specialty vendors, including polymers, carbon dioxide, and nitrogen. Oil & Gas Exploration Companies usually house the technologies used in EOR. To maximize their production targets, market players are looking to extract oil from existing resources. Industry growth will be further fueled by increased investments in R&D to develop cost-effective oil extraction technology. The market for enhanced oil recovery includes the following players:

• ExxonMobil Corporation

• BP plc

• Royal Dutch Shell plc

• Total SA

• Chevron Corporation

Up Market Research published a new report titled “Enhanced Oil Recovery Market research report which is segmented by Technology (CO2 Injection, Thermal), by Application (Onshore, Offshore), By Players/Companies Chevron Corporation, ExxonMobil Corporation, Total SA, Royal Dutch Shell plc, BP plc”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Enhanced Oil Recovery Market Report Segments:

The market is segmented by Technology (CO2 Injection, Thermal), by Application (Onshore, Offshore).

Enhanced Oil Recovery Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Enhanced Oil Recovery Market

Overview of the regional outlook of the Enhanced Oil Recovery Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Enhanced Oil Recovery Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Enhanced Oil Recovery Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. CO2 Injection

                2. Thermal

                1. Onshore

                2. Offshore

8. Market scenario by region, sub-region, and country.
9. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
10. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
11. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Enhanced Oil Recovery Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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Reasons to Purchase the Enhanced Oil Recovery Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.