Enhanced Oil Recovery Market Analysis

Global Enhanced Oil Recovery Market Overview:

Enhanced Oil Recovery Market Size was valued at USD 41.4 Billion in 2023. The Enhanced Oil Recovery market industry is projected to grow from USD 44.10 Billion in 2024 to USD 68.7 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.70% during the forecast period (2024 - 2032). Depleting oil reserves, increasing energy demand, government incentives, volatility in oil prices, technological collaboration, geopolitical factors, enhanced recovery policies, are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Enhanced Oil Recovery Market Trends

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  Depleting oil reserves is driving the market growth

  
  

The world's diminishing oil reserves are causing the enhanced oil recovery (EOR) industry to grow. As the world's need for energy increases, conventional oil sources that have been producing for decades are seeing a reduction in their rates of production. This loss puts the energy supply at jeopardy, highlighting the need for innovative strategies to extract more oil from the available sources. The problem is solved and the market is expanded by enhanced oil recovery procedures, which maximize the recovery of remaining oil reserves.

Conventional production methods often only retrieve a small part of the total amount of oil present in a reservoir. Between 30% and 40% of the oil may normally be extracted using these processes, leaving the majority below. Using enhanced oil recovery techniques, the recovery factor can be increased dramatically, sometimes by as much as 60%. In order to release trapped hydrocarbons and prolong the useful life of oil fields, governments and oil operators are relying more and more on EOR technology.

EOR implementation has financial benefits, which further spurs development. Because of declining production rates and increasing operating expenses, conventional oil production frequently becomes less profitable as reservoirs saturate. Using EOR techniques, operators can extract more oil that was previously not economically feasible to recover. This extra output might boost the project's overall profitability, entice fresh investment, and enhance EOR technology.

The growing demand for oil and the lack of readily available, new sources of oil have an impact on the commercial importance of EOR. As traditional oil stocks are used up, finding and developing new, large-scale oil fields becomes more difficult. As a result, oil companies are compelled to invest money in improving their current areas. To maximize the return on older assets and reduce the supply-demand imbalance, EOR offers a practical strategy.

Due to the advantages they have for the environment, several EOR procedures are becoming more and more popular, which is encouraging industry growth. CO2 injection for enhanced oil recovery (EOR) techniques could aid in carbon capture and storage (CCS) while also enhancing oil recovery. When CO2 is poured into the reservoir, the greenhouse gas becomes underground, reducing its atmospheric emissions. Governments and companies aiming to reduce their carbon footprint are increasingly attracted to these environmentally friendly EOR approaches, which is promoting further market expansion.

Because of technical advancements, the efficacy and implementation of EOR procedures have greatly improved. Advancements in reservoir characterization, monitoring, and modeling have optimized the choice and use of EOR approaches by enabling a better understanding of reservoir dynamics. The effectiveness of EOR procedures including steam injection, surfactant flooding, and polymer flooding has also been enhanced by advancements in nanotechnology, chemical synthesis, and engineering methods.

Government funding and initiatives that support energy security and sustainability also help the EOR industry grow. Many countries recognize the importance of raising domestic oil production in order to reduce their reliance on oil imports and protect their energy supplies. Tax reductions, grants, and relaxed rules are routinely used as incentives to stimulate investment in EOR projects. Thus, driving the Enhanced Oil Recovery market revenue.

Enhanced Oil Recovery Market Segment Insights:

Enhanced Oil Recovery Technology Insights

The Enhanced Oil Recovery market segmentation, based on Technology, includes Thermal, Chemical, Microbial and Others. The thermal segment dominated the market in 2022. Thermal EOR techniques may be able to recover a significant portion of the original oil in place, sometimes even more than 50%. Thermal EOR is a desirable alternative for operators looking to maximize production from existing reservoirs because to the significant improvement in oil recovery compared to primary and secondary recovery techniques.

Enhanced Oil Recovery Application Insights

The Enhanced Oil Recovery market segmentation, based on Application, includes Onshore and Offshore. The onshore category generated the most income in 2022. The infrastructure surrounding onshore oil fields, such as the pipelines, storage facilities, and processing facilities, is frequently in good shape. By lowering overall production costs and increasing the financial viability of onshore projects, the already-existing infrastructure can increase revenue generation.

Figure 1: Enhanced Oil Recovery Market, by application, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Enhanced Oil Recovery Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Enhanced Oil Recovery Market dominated this market in 2022 (45.80%). Numerous oil fields in North America have been producing for many years, which has led to a decline in production using traditional extraction techniques. EOR methods present a workable approach for reviving these old fields and increasing oil production from them. Further, the U.S. Enhanced Oil Recovery market held the largest market share, and the Canada Enhanced Oil Recovery market was the fastest growing market in the North America region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Enhanced Oil Recovery Market Share By Region 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Enhanced Oil Recovery market accounts for the second-largest market share. Due to historically high oil prices in Europe, EOR projects are now more economically feasible. Operators are more ready to invest in technology like EOR to boost production and profitability when oil prices are favorable. Further, the German Enhanced Oil Recovery market held the largest market share, and the UK Enhanced Oil Recovery market was the fastest growing market in the European region

The Asia-Pacific Enhanced Oil Recovery Market is expected to grow at the fastest CAGR from 2023 to 2032. Oil fields in the Asia-Pacific area are maturing, which is causing production rates to decrease. EOR techniques present a chance to increase the recovery from these old fields and lengthen their useful lives. Moreover, China’s Enhanced Oil Recovery market held the largest market share, and the Indian Enhanced Oil Recovery market was the fastest growing market in the Asia-Pacific region.

Enhanced Oil Recovery Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Enhanced Oil Recovery market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Enhanced Oil Recovery industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Enhanced Oil Recovery industry to benefit clients and increase the market sector. In recent years, the Enhanced Oil Recovery industry has offered some of the most significant advantages to medicine. 

Major players in the Enhanced Oil Recovery market, including Praxair Technology, Inc., PJSC Lukoil Oil Company, FMC Technologies, Inc., Chevron Phillips Chemical Corporation, Schlumberger Ltd., Royal Dutch Shell Plc, Halliburton Corporation, Basf SE, Baker Hughes, a GE company, Statoil ASA, BP Plc., Exxon Mobil, and Titan Oil Recovery and others, are attempting to increase market demand by investing in research and development operations.

The oil and gas company Lukoil Oil Co. (Lukoil) is in charge of exploration and production of crude oil and natural gas. A few of the nations where Lukoil has real estate holdings include Russia, Kazakhstan, Azerbaijan, Uzbekistan, the Middle East, South America, Northern and Western Africa, and South-East Asia. Additionally, the company is involved in the marketing, trading, and refinement of refined commodities, natural gas, and crude oil. It operates a network of refineries in Russia, Italy, Romania, and Bulgaria. 

The company is also interested in the Dutch Zeeland refinery. Lukoil also contributes significantly to the petrochemical sector with its operations in Russia, Bulgaria, and Italy. In addition, Lukoil produces power through operations in Russia, Bulgaria, and Romania. To sell its products, the company engages in direct retail and export activities. Lukoil's headquarters are in Moscow, Russia.

Phillips 66 and the Chevron Corporation have partnered to form the Chevron Phillips Chemical Co LLC (CPChem). The company manufactures olefins and polyolefins and also sells alpha olefins, styrenics, aromatics, specialty chemicals, pipes, and premium plastics. The company offers a wide range of chemical services and products.A few of the industries that CPChem helps include oil and gas, agriculture, automobiles, appliances, buildings and construction, dry cleaning, electronics, healthcare and medical, home, industrial, pharmaceuticals, plastics, rubber, and textiles. 

Through joint venture partners, it operates production facilities in the US, Saudi Arabia, Singapore, Qatar, and Belgium. The company conducts business throughout North America, South America, the Middle East, Asia, and Europe. The headquarters of CPChem are located in The Woodlands, Texas, in the US.

Key Companies in the Enhanced Oil Recovery market include

• Praxair Technology, Inc.


• PJSC Lukoil Oil Company


• FMC Technologies, Inc.


• Chevron Phillips Chemical Corporation


• Schlumberger Ltd.


• Royal Dutch Shell Plc


• Halliburton Corporation


• Basf SE


• Baker Hughes


• GE company


• Statoil ASA


• BP Plc.


• Exxon Mobil


• Titan Oil Recovery

Enhanced Oil Recovery Industry Developments

July 2021:The biggest carbon capture, storage, and utilization (CCUS) project in China was started by Sinopec. The plan entails injecting carbon dioxide that has been trapped at a petrochemical plant back into the Shengli oilfield as part of the field's improved oil recovery operation.

August 2021:Using coal gasification technology, J-Power and Schlumberger intended to investigate the viability of manufacturing CO2-free hydrogen. For enhanced oil recovery (EOR), the carbon dioxide produced by the process will be utilised.

Enhanced Oil Recovery Market Segmentation:

Enhanced Oil Recovery Technology Outlook

• Thermal


• Chemical


• Microbial


• Others

Enhanced Oil Recovery Application Outlook

• Onshore


• Offshore

Enhanced Oil Recovery Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America