Global Enhanced Oil Recovery (EOR) Market 2024-2031

Global Enhanced Oil Recovery (EOR) Market 2024-2031

Global Enhanced Oil Recovery (EOR) Market Size, Share & Trends Analysis Report by Technique (Gas Injection, Thermal Injection, Chemical Injection, and Other), and by Application (Offshore and Onshore), Forecast Period (2024-2031)

The global EOR market is anticipated to grow at a CAGR of 6.9% during the forecast period. The growth of the market is mainly driven by the rising global energy demand, due to factors such as population expansion, industrialization, and urban development. Additionally, with depleting conventional oil reserves, there is an increasing reliance on EOR techniques to optimize production from existing oil fields. Ongoing technological advancements, stringent environmental regulations, and the demand for sustainable energy solutions are promoting the adoption of technologies that mitigate the environmental impact of oil extraction, eventually driving overall demand for enhanced oil fields. Apart from these factors, the changing geopolitical landscape and fluctuations in oil prices also influence the market, pushing market players to invest in enhanced oil recovery projects.

Segmental Outlook

The global EOR market is segmented by technique and application. Based on the technique, the market is sub-segmented into gas injection, thermal injection, chemical injection, and other (microbial injection). Based on the application, the market is bifurcated into offshore and onshore applications.

Gas Injection Contributes the Highest to the Global Enhanced Oil Recovery (EOR) Industry

Among the techniques, the gas injection EOR contributes the highest share in the global EOR market. Gas injection uses gases such as natural gas, nitrogen, or CO2 that expand in a reservoir to push additional oil to a production wellbore, or other gases that dissolve in the oil to lower its viscosity and improve its flow rate. CO2 injection is being preferable choice among market players owing to its compatibility with heavy oil, resulting in enhanced oil recovery through swelling and reduction of viscosity. Gas injection approaches, including CO2 injection, offer advantages such as heightened oil recovery, diminished environmental footprint, and potentially more economical operational costs. In February 2023, Saudi Aramco announced that the company is currently identifying fields suitable for enhanced oil recovery, leveraging a 9 million mt/year carbon capture hub set to be operational in Jubail by 2027. Despite aiming to achieve a production capacity target of 13 million b/d by 2027, the official clarified that the carbon injection projects are not intended to surpass this goal. According to the company, it strategically incorporates enhanced oil recovery measures, particularly through carbon capture, to optimize production from selected fields.

Regional Outlook

The global EOR market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America). Among regions, the North American EOR market is expected to grow significantly during the forecast period primarily due to the rising global energy demand and the lessening availability of easily recoverable oil reserves, which has increased efforts to optimize production from existing fields. According to the 2020 US CO2 EOR Survey conducted by Advanced Resources International, the incremental oil recovery from CO2 EOR in the US was approximately 273 thousand b/d in 2020, a decline of about 9.0% from the 2019 Survey total of 299,000 b/d. The updated survey also shows a total of 1.6 Bcf/d of CO2 was supplied for CO2 EOR in 2020, including about 1.3 Bcf/d from natural sources and 0.3 Bcf/d from industrial sources. This is a decline of about 47.0% compared to the 2019 Survey CO2 supply total of 3.0 Bcf/d. In Canada the highest growth in EOR production occurred in Saskatchewan Thermal, rising from 71 Mb/d in 2010 to 158 Mb/d in 2050. Saskatchewan Midale EOR experienced a decline from 9 Mb/d in 2010 to 3 Mb/d in 2050. Additionally, Saskatchewan Weyburn EOR witnesses a decrease from 34 Mb/d in 2010 to 14 Mb/d in 2050. Meanwhile, Zama in Alberta sees a reduction from 0.3 Mb/d in 2010 to 0.1 Mb/d in 2050. Although the data shows declining in EOR production in recent years, rapid fluctuations in oil prices globally and a growing need for energy security owing to geopolitical tensions are expected to rebound regional EOR oil production.

The Rest of the World contributes Highest to the global Enhanced Oil Recovery (EOR) Market

The growing demand for EOR in the Middle East, Africa, and Latin America is driven by various pivotal factors. In the Middle East, which houses some of the world's largest oil reserves, there is an increasing focus on optimizing oil recovery from mature fields as conventional production methods decline. As per the data from the US Energy Information Administration, in 2022, Saudi Arabia, Iraq, UAE, Iran, and Kuwait collectively contributed to 29.0% of global oil production. Similarly, in Africa, where many oil fields are reaching maturity, EOR is considered a necessary solution to sustain and increase production rates. The economic contribution of oil revenue in these regions further accelerates the adoption of advanced recovery methods.

In Latin America, characterized by diverse oil-producing nations, the growing demand for EOR is driven by declining conventional production and ensuring energy security. Governments in these regions recognize the importance of optimizing existing oil reservoirs to meet domestic energy needs and maintain competitiveness on a global scale. Additionally, the availability of EOR expertise in the region is also helping in increasing the adoption of EOR in Latin America. Overall, the rising demand for EOR in the Middle East, Africa, and Latin America is driven by strategic shifts by public and private market players aimed at maximizing oil recovery, enhancing energy security, and fortifying economic sustainability.

Market Players Outlook

The major companies serving the global enhanced oil recovery (EOR) market include Baker Hughes Company, Cenovus Energy Inc., Chevron Corp., and China National Petroleum Corp., among others. Market players are increasingly focusing on collaborating with EOR market players by adopting strategies such as mergers acquisitions, and investments among others. For instance, in July 2023, Exxon Mobil Corporation announced it had entered into a definitive agreement to acquire Denbury Inc., a developer of carbon capture, utilization, and storage (CCS) solutions and enhanced oil recovery.

The Report Covers

Market value data analysis of 2023 and forecast to 2031.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the EOR market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market-entry and market expansion strategies.

Competitive strategies by identifying ‘who-stands-where’ in the market.