Enhanced Oil Recovery Market To Exhibit A CAGR of 7.8% By 2030 Owing To Rising Number of Aged Wells And Decreasing Production From Existing Oilfields | Grand View Research, Inc.

May 18 05:06 2022
Enhanced Oil Recovery Market To Exhibit A CAGR of 7.8% By 2030 Owing To Rising Number of Aged Wells And Decreasing Production From Existing Oilfields | Grand View Research, Inc.
Grand View Research, Inc. – Market Research And Consulting
According to new report available with Grand View Research, the global enhanced oil recovery industry is expected to gain more traction due to the growing exploration of unconventional oil and gas resources. Furthermore, U.S. government funding aimed at commercializing the EOR technology is anticipated to positively influence the industry landscape.

Enhanced Oil Recovery Industry Overview

The global enhanced oil recovery market size was valued at USD 38.83 billion in 2021 and is expected to reach USD 76.78 billion by 2030, registering a CAGR of 7.8% over the forecast period. An increasing number of aged wells, along with decreasing production from existing oilfields, is expected to drive the market demand over the forecast period. 

Enhanced oil recovery (EOR) technology enhances oil production from mature and aged oil fields, by almost 10 to 20 percent when compared to conventional oil extraction methods. Mature wells are those oil reserves where production has reached its peak and has started to decline owing to poor permeability or exhibiting heavy oil. Technically, EOR increases the permeability of the reservoir so that hydrocarbons can flow through the pathways easily and into the targeting producing well.

Gather more insights about the market drivers, restrains and growth of the Global Enhanced Oil Recovery Market

The U.S. market is anticipated to witness significant growth on account of the growing exploration of unconventional oil and gas resources. Furthermore, government funding aimed at commercializing the EOR technology is anticipated to positively influence the industry landscape. For instance, the U.S. Department of Energy (DoE) provides funding to private companies and universities in order to carry out research for advancements in EOR technologies.

U.S. enhanced oil recovery market size, by technology, 2020 - 2030 (USD Billion)

Further, a number of CO2 injection-based EOR projects started from 2017 to 2020 in the U.S., which resulted in the dominating share of CO2 injection technology over other available technologies in the country. For instance, the oil production in the Permian Basin has shown a significant rise in oil production by the use of CO2-EOR technology. These market developments are expected to boost the growth of the market in the U.S. in the forecast period.

Falling crude oil prices are expected to have a negative impact on the oil and gas industry and may restrain the market growth over the forecast period. The COVID-19 pandemic led to a drastic drop in oil prices in 2020. This resulted in reductions in planned capital expenditure and the implementation of cost-cutting actions by oil players across the globe, which is expected to hinder the growth of the market.

However, a rise in environmental concerns regarding carbon emissions has resulted in enhancing the demand for carbon capture and storage (CCS), which has emerged as a viable solution to limit carbon emissions. These factors are expected to positively impact the market growth as captured carbon in CCS projects is usually utilized by oil and gas companies for CO2 injection EOR technology.

Enhanced Oil Recovery Market Segmentation

Based on the Technology Insights, the market is segmented into Thermal, CO2 Injection, Chemical and Others.

  • The thermal segment occupied the largest revenue share of over 35.0% in 2021. The method entails the application of heat to the oil wells for lowering the oil viscosity and increasing its mobility ratio.
  • CO2 injection technology injects CO2 into the rock pores to recover the crude oil. CO2 is miscible with crude oil and is comparatively less expensive than other similar miscible fluids used for these applications, making it a preferred choice for EOR applications.
  • Chemical EOR technology involves the use of polymers and surfactants, which are injected into the oil well, which reduces interfacial pressure and enhances flooded viscosity, thereby increasing the production from the oil well.

Based on the Application Insights, the market is segmented into Onshore and Offshore.

  • The onshore segment occupied the largest revenue share of over 90.0% in 2021 owing to the significant presence of onshore exploration and production projects across the world. 
  • The steady development of the existing offshore wells, particularly in the South China Sea, the Persian Gulf, the North Sea, and the Gulf of Mexico, is expected to drive the offshore segment over the forecast period. Further, operators such as BP, Statoil, and Repsol are testing the techno-economic feasibility of EOR in offshore oil fields.

Based on the Regional Insights, the market is segmented into North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa.

  • North America dominated the market and accounted for a revenue share of more than 35.0% in 2021. The U.S. is the major contributor to the regional market growth.
  • The Asia Pacific is anticipated to witness the highest growth over the forecast period, with China occupying the largest share across the region. Rising oil and gas demand from major economies including China and India, along with the increased deployment of EOR in aged wells to meet the production targets, is estimated to bolster the market demand in the Asia Pacific.
  • The market in the Middle East and Africa was dominated by Oman in 2021 and it is expected to maintain its lead in the forecast period. However, new EOR projects are expected to come online in countries such as Saudi Arabia, UAE, Qatar, and Kuwait in the forecast period, which will result in boosting the growth of the market in the region in the forecast period.

Market Share Insights

  • July 2021: S China’s largest carbon capture, storage, and utilization (CCUS) project has been launched by inopec. This includes sending carbon dioxide captured at a petrochemical refinery to the Shengli oilfield, where it will be reinjected as part of the field’s enhanced oil recovery program.
  • October 2021: LUKOIL and Gazprom Neft signed an agreement on cooperation to implement oil recovery enhancement projects. The reconciliation gives joint work on improving chemical methods of enhanced oil recovery.

Key Companies Profile:

Market players are venturing toward extracting oil from existing reserves to maximize their production targets. Moreover, increasing investments in R&D activities in order to develop cost-effective oil recovery technology is expected to fuel the industry’s growth.

Some prominent players in the global enhanced oil recovery market include,

  • BP plc
  • Cenovus Energy, Inc.
  • Chevron Corporation         
  • Equinor ASA
  • ExxonMobil Corporation
  • Petróleo Brasileiro S.A.
  • Total SA

Order a free sample PDF of the Enhanced Oil Recovery Market Intelligence Study, published by Grand View Research.

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