Enhanced Oil Recovery Market Forecasts to 2028 – Global Analysis By Technology (Chemical-Enhanced Oil Recovery, Thermal-Enhanced Oil Recovery), Application (Offshore, Onshore) and By Geography

Enhanced Oil Recovery Market Forecasts to 2028 – Global Analysis By Technology (Chemical-Enhanced Oil Recovery, Thermal-Enhanced Oil Recovery), Application (Offshore, Onshore) and By Geography

According to Stratistics MRC, the Global Enhanced Oil Recovery Market is accounted for $50.97 billion in 2022 and is expected to reach $83.16 billion by 2028 growing at a CAGR of 8.5% during the forecast period. Enhanced oil recovery is the performance of various techniques for raising the amount of crude oil that can be extracted from an oil field. Enhanced oil recovery is also called tertiary recovery. There are three primary techniques for enhanced oil recovery they are thermal recovery, gas injection, and chemical injection.

The United States and Canada are expected to further ramp up production from their unconventional reserves during the forecast period, which would, in turn, supplement the demand for gas injection-based EOR in North America. Moreover, the International Energy Agency (IEA) estimated that the systematic application of all available EOR technologies could unlock approximately 300 billion barrels of recoverable oil. As of December 2021, Daqing Oilfield, controlled by the China National Petroleum Corporation in northeast China's Heilongjiang Province, has become the world's largest tertiary oil recovery (enhanced oil recovery) production base. The annual crude oil output via tertiary recovery of Daqing Oilfield has exceeded 10 million tonnes for 20 consecutive years, bringing its cumulative total production to 286 million tonnes.

Market Dynamics:

Driver:

Increasing demand for energy security

In recent years for the economic progress of any nation in the world hydrocarbons are significant. Though, the availability of limited reserves increases the cost of energy, requiring exponential investment in imports of oil by oil-deficient countries. Hence, many countries across the globe are adopting advanced technologies to enhance domestic production to meet the oil demand, which is driving the enhanced oil recovery market trends. This will not only reduce the outflow of foreign exchange as a result of oil imports but also empowers the nation through energy security.

Restraint:

High Cost

Boosted oil recovery around the world has primarily trusted government incentives or advanced investment strategies due to the high cost of technology. The procedure is integrally difficult related to conventional methods. Deployment of EOR requires highly skilled professionals, stepwise implementation and integration of R&D, commitment, and risk-bearing capacity, which restraint the growth of the market.

The world is undergoing a critical economic crisis owing to the exponential spread of the nCovid-19 pandemic. All the businesses across the globe have hit a virtual standstill, which weakens the demand for oil and petroleum products. Fearing the ongoing economic crisis, most oil and gas companies are planning significant capital and operational expenditure cuts, putting the market on the back foot.

Opportunity:

Growing capital expenditure by national oil companies

National oil companies are stimulating strategies for growing the domestic production of oil by investing in advanced technologies. For instance, Indian conglomerates ONGC and IOC signed a pact for the injection of CO2 into a well to enhance the production of oil. Furthermore, Petroleum Development Oman (PDO) is also planning to expand its production in the forthcoming years. Hence, growing investment by national oil companies and government assistance to increase domestic oil production motivate the market size.

Threat:

Growing acceptance of renewable energy

Europe is one of the chief oils & gas producers and depletion, the move toward renewable energy in the European region has resulted in the decline of oil consumption in Europe. The European oil demand remained stagnant owing to the slowing economic activity. This decline has resulted in the fall in oil consumption in Europe, and also results in the reduction of oil & gas production and drilling activities, thus reducing the demand for enhanced oil recovery services.

The ongoing COVID pandemic has declined the exploration and production activities in the oil & gas sector. Owing to the lockdown in various countries has further declined the transportation and related activities, and are facing supply chain issues. Furthermore, Oil companies such as Shell and Exxon are taking measures to counteract oversupply issues by delaying LNG project constructions. This creates a challenging environment for the enhanced oil recovery market.

The onshore segment is expected to be the largest during the forecast period

The onshore segment is expected to grow at the fastest rate during the forecast period, due to the larger number of mature oil fields located in North America, the Middle East & Africa. The onshore oilfields in these areas are mature and are on the edge of exhaustion containing a billion barrels of added oil trapped. Such an amount of oil can be recovered through EOR services. Thus, increasing production activities onshore are driving the market.

The thermal-enhanced oil recovery segment is expected to have the highest CAGR during the forecast period

The thermal-enhanced oil recovery segment is anticipated to witness the fastest CAGR growth during the forecast period, owing to low cost and high recovery rates associated with the use of thermal injection technology. Thermal injection technology is most widely used for enhanced oil recovery operations among the primary oil recovery and secondary oil recovery methods.

Region with highest share:

North America is projected to hold the largest market share during the forecast period. North America is the foremost revenue contributor owing to the presence of a huge mature oil and gas asset base in the Gulf of Mexico and the availability of good potential for unconventional sources of oil and gas in various countries such as Canada and the US.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR over the forecast period with China occupies the largest share across the province. Moreover, 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.

Key players in the market

Some of the key players profiled in the Enhanced Oil Recovery Market include Basf Se, Chevron Phillips Chemical Company, British Petroleum, ExxonMobil Corporation, Oil and Natural Gas Corporation Ltd, Schlumberger Ltd, Lukoil Oil Co., TechnipFMC, Equinor, Abu Dhabi National Oil Company, Halliburton Co., Canadian Natural Resources, Praxair Technology, Inc., ConocoPhillips, Secure Energy Services Inc and Royal Dutch Shell Plc.

Key Developments:

In September 2019: TechnipFMC announced that it opened a surface international facility in ICAD II. The scope of the investment was to assist ADNOC to enhance its operations in Abu Dhabi. The new facility offered a broad range of TechnipFMC portfolio with its high technology equipment in drilling, completion, production, and pressure control segments.

In October 2021: LUKOIL and Gazprom Neft signed an agreement on cooperation to implement oil recovery enhancement projects. The agreement provides joint work on improving chemical methods of enhanced oil recovery.

Technologies Covered:
• Chemical-Enhanced Oil Recovery
• Gas-Enhanced Oil Recovery
• Thermal-Enhanced Oil Recovery
• Other Enhanced Oil Recovery Techniques

Applications Covered:
• Offshore
• Onshore

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025 and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements