Enhanced Oil Recovery Market Report Scope & Overview:

The Enhanced Oil Recovery Market size was valued at USD 53.51 billion in 2023 and is expected to grow to USD 90.58 billion by 2031 and grow at a CAGR of 6.8 % over the forecast period of 2024-2031.

Primary, secondary, and tertiary (or improved) recovery are the three phases of crude oil development and production in U.S. oil reservoirs. In primary recovery, oil is brought to the surface using artificial lift methods (such as pumps), which combine natural pressure from the reservoir or gravity to propel oil into the wellbore. However, only approximately 10% of the initial oil in a reservoir is normally produced during primary recovery. By commonly injecting water or gas to displace oil and move it to a producing wellbore, secondary recovery techniques prolong the useful life of a field.

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However, since a large portion of the easy-to-obtain oil has already been extracted from American oil fields, producers have tried a number of tertiary, or enhanced oil recovery (EOR), techniques that have the potential to ultimately generate 30 to 60 percent or more of the original oil that was there in the reservoir. To varied degrees, three main kinds of EOR have been shown to be financially successful.

MARKET DYNAMICS

KEY DRIVERS:  

• Rising demand for national oil companies

• Increased output from ageing oilfields

Due to the rising demand for oil and gas, corporations are keen to boost output from the established fields. Hence By adopting EOR technology, these businesses are concentrating on boosting recovery and prolonging the life of ageing fields, exceeding production levels and fueling the market for enhanced oil recovery.

RESTRAIN:

• High capital Investment

• Increasing adoption of renewable energy

OPPORTUNITY: 

• Increasing capital expenditure by national companies

In order to boost oil and gas production from established fields, the enhanced oil recovery market is anticipated to see significant growth prospects on a global scale. Globally, there is a rising need for oil and gas.

The worldwide market for improved oil recovery is being driven by the increasing presence of major market participants. By utilising improved oil recovery technology, market participants are concentrating on recovering and extending the life of older fields.

CHALLENGES:

• High cost of technical procedures.

• Rising operational issues

IMPACT OF RUSSIA-UKRAINE WAR

After Russia invaded Ukraine, the cost of crude oil on the international market soared, rising from around $76 per barrel at the beginning of January 2022 to more than $110 per barrel by March 4 of the same year. Due to increasing demand, which was spurred by the world economies' recovery from the COVID-19 pandemic and poor investment in the oil and gas sector, the price of crude oil was already inflated even before the conflict.

IMPACT OF ONGOING RECESSION

A bear market in oil and gas was brought by the financial crisis and the Great Recession, which caused the price of a barrel of crude oil to drop from $133.88 to $39.09 in just over a year. As credit shrank and profit expectations dropped, the recession resulted in a broad decline in asset prices around the world. At the same time, declining consumer and business demand for oil was a result of increased unemployment and reduced expenditure.

KEY MARKET SEGMENTATION

By Technology

• Thermal EOR

  • Steam

  • In-situ Combustion

  • Others (Hot water and Solar)

• Chemical EOR

  • Polymer

  •  Surfactant

  • Alkaline Surfactant Polymer

• Gas EOR

  • Co2

  • Other Gas (Nitrogen and Natural gas)

• Others (microbial, seismic, simultaneous water alternating gas, and water alternating gas

By Application

• Onshore

• Offshore

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REGIONAL ANALYSIS

In 2021, North America led the market and represented more than 35.0% of total sales.

The Asia Pacific region is expected to see the strongest growth, with China holding the biggest share overall. The demand for oil and gas in the Asia Pacific is expected to expand because to rising demand from major economies like China and India and greater use of EOR in old wells to achieve production goals.

Russia dominates the market in Europe and has a significant impact on how the hydrocarbon sector is shaped. Russian businesses want to raise output in order to compete on price on the global market. Additionally, Germany, the UK, and other European nations are also seeing modest growth, which benefits the continent's market as a whole. Some of the world's biggest producers of hydrocarbons are found in Latin America. Brazil and Venezuela are the two countries that use EOR the most to improve oil output.

REGIONAL COVERAGE:

North America

• US

• Canada

• Mexico

Europe

• Eastern Europe

  • Poland

  • Romania

  • Hungary

  • Turkey

  • Rest of Eastern Europe

• Western Europe

  • Germany

  • France

  • UK

  • Italy

  • Spain

  • Netherlands

  • Switzerland

  • Austria

  • Rest of Western Europe

Asia Pacific

• China

• India

• Japan

• South Korea

• Vietnam

• Singapore

• Australia

• Rest of Asia Pacific

Middle East & Africa

• Middle East

  • UAE

  • Egypt

  • Saudi Arabia

  • Qatar

  • Rest of Middle East

• Africa

  • Nigeria

  • South Africa

  • Rest of Africa

Latin America

• Brazil

• Argentina

• Colombia

• Rest of Latin America

RECENT DEVELOPMENTS

• Petrofac has contracts for around US$17 million for the Ithaca Energy Captain field as of July 2021. The project will be in charge of commissioning, fabricating, and building the new topsides development, delivering onshore and offshore activities, and is anticipated to recover around 40 million barrels of oil equivalent.

• Sinopec launched one of China's biggest carbon capture, utilisation, and storage (CCUS) projects in July 2021. The business intends to carry out 24 CO2 EOR projects, which include injecting carbon dioxide back into a specific zone with 25 million tonnes of existing oil. Additionally, Sinopec intends to inject 10.68 million tonnes of carbon dioxide over the following 15 years, which is expected to increase overall oil output by around 22,000,000 barrels.

• In the deepwater Gulf of Mexico, Talos Energy has announced plans to drill the Tornado Attic well using Seadrill's West Neptune drillship in May 2021. The business estimates that the Tornado Attic well will improve its waterflood-enhanced oil recovery project in the Tornado field and will effectively raise the field's production by between 25 and 35 million barrels of oil equivalent (mboe).

KEY PLAYERS 

The Major Players are Chevron (United States), Oxy (United States), BP (United Kingdom), Husky Energy (Canada), ConocoPhillips (United States), China National Petroleum Corporation (China), China Petrochemical Corporation (China), Cairn Oil & Gas (India), Lukoil (Russia), Petrobras (Brazil), Ecopetrol (Colombia), Petroleum Development Oman (Oman), and other players

Oxy (United States)-Company Financial Analysis