Oil & Gas

Global Enhanced Oil Recovery Market

April 25, 2022
ID: SR/OG-09
Format:Pdf
Pages:220

Global Enhanced Oil Recovery Market By Technology (Thermal Injection, Gas Injection and Chemical Injection), By Application (Onshore and Offshore) and By Country (North America, Europe, Asia-Pacific, South America and The Middle East & Africa)-Global Forecast to 2028.

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Description

Enhanced Oil Recovery Market Overveiw

The global Enhanced Oil Recovery market size was USD 52.4 billion in 2021 and is predicted to grow at a CAGR of 4.1% from 2022 to 2028. An increasing number of ancient wells and declining production from existing oilfields are anticipated to push the market over the forecast period. The enhanced oil recovery (EOR) technology improves oil production from mature and aged oil fields by nearly 10 to 20%, approximating conventional extraction methods. Mature wells are oil reserves where production peaked and decreased due to poor permeability or exhibiting heavy oil. Technically, EOR improves the permeability of the reservoir so that hydrocarbons can stream through the pathways easily and into the targeting producing well.

What is Enhanced Oil Recovery?

Enhanced oil recovery methods refer to recovering more oil from existing oil wells. The global oil industry is witnessing significant slowdowns as the oil prices dropped to a historic low in 2015. One of the main causes for the decline in prices was the decreased demand for oil in the US and China due to the shale oil boom. However, the ripple impact induced by the drop in oil prices severely affected the upstream industry as the bulk of the operators had to scale down their production. It has led them to stop new production activities and depend on existing well for oil production for their operations. Besides, most oil wells worldwide are already approaching their operational lifetime, and oil production from these wells is constantly decreasing. To improve the oil production from existing wells, oil field upstream operators invest in enhanced oil recovery methods predicted to improve the oil production from existing wells.

Growth Drivers

Unbounded Need for Oil to Deliver Impetus to Market

The exponential oil consumption across various industry verticals such as transportation, shipping, power, manufacturing, and others has raised the demand for petroleum products. Operators are assuming different advanced methods to meet the growing requisition of oil. Enhanced Oil Recovery offers the ultimate oil recovery from the reservoir, increasing overall production. Also, it optimizes the production cost by detouring drilling a new well, which is projected to push the market.

Gradual Transformation towards Optimizing Enhanced Oil Recovery from Reservoirs Encourage the Market

Enhanced Oil Recovery allows the extraction of a substantial amount of immobile oil and decreases the cost of drilling new wells. Several organizations in the United States are deploying the Enhanced Oil Recovery process to complete the national production targets. Government commodities worldwide emphasize the ultimate recovery of oil to mitigate the environmental harm due to new drilling. Moreover, many mature wells will likely promote the demand for advanced technologies to extract oil and substantially raise this market value.

Opportunities

Rising Capital Expenditure by National Oil Companies Possible to Inflate Opportunities

National oil companies are reviving plans to improve domestic oil production by investing in advanced technologies. For example, Indian conglomerates ONGC and IOC signed a pact in 2019 to inject CO2 into a well to enhance oil production. Similarly, Petroleum Development Oman (PDO) is also planning to expand its production in the forthcoming years. Hence, increasing investment by national oil companies and government assistance to expand domestic oil production impetus for the EOR market size.

Restraints

Increased Capital Investment and Economic Slowdown Puts Growth on Blackfoot

Enhanced oil recovery worldwide depends on government encouragement or innovative investment techniques due to technology’s high cost. The technique is inherently complex, approximated to conventional methods. Deployment of Enhanced Oil Recovery requires highly skilled professionals, stepwise execution and integration of R&D, commitment, and risk-bearing capacity, which challenges the market’s growth. Currently, the world is experiencing an acute economic situation due to the exponential spread of the Covid-19 pandemic. All the businesses worldwide have hit a virtual standstill, which weakens the need for oil and petroleum products. Fearing the ongoing economic situation, most oil and gas firms plan substantial capital and operational expense cuts, setting the market on the back foot.

Pre Covid-19 Impact on Global Enhanced Oil Recovery Market

Before the covid-19 period, the current production technique offers several economic and technological benefits in extracting oil from reservoirs. Traditionally, primary and secondary methods have been operated to target mobile oil in the reservoir. The tertiary method, or enhanced oil recovery (EOR), targets immobile oil, which cannot deliver due to capillary and viscous forces. The technology has grown towards ultimate oil recovery over the years instead of immediate oil recovery. Moreover, many countries are increasing domestic production through technological advancement, likely strengthening the market before the pandemic.

Covid-19 Impact on Global Enhanced Oil Recovery Market

The ongoing covid-19 pandemic has affected the oil & gas industry globally. Due to the current strategy, various oil & gas companies across regions have to shut down their manufacturing facilities and services as countries practice partial or full lockdown strategies to trade with the pandemic. The companies across the region have also stopped or delayed the major oil & gas projects. The covid-19 pandemic has also impacted crude oil prices, well drilling and production activities, and the oil and gas supply chain. The reduction in production activities has further negatively impacted the enhanced oil recovery market in the short and medium-term.

Post Covid-19 Impact on Global Enhanced Oil Recovery Market

After the covid-19 period, there is a high demand for chemicals to increase output in mature onshore fields. With demand for chemical Enhanced Oil Recovery techniques expanding in onshore and offshore oilfields, the market for EOR chemicals is suspended for growth. The Chemical EOR market is being fostered by a sustained emphasis on innovations like hybrid methods and the evolution towards bio-based chemicals owing to their eco-friendly attribute. In recent years, nanotechnology has emerged with potential applications in the oil & gas industry. Nanofluid, guiding the application of nanotechnology to base fluids such as oil, gas, or water, offers a solution to several concerns related to the oil & gas industry.

By Technology Segmental Analysis

Based on technology, the global enhanced oil recovery market is segmented into Thermal Injection, Gas Injection and Chemical Injection. The thermal injection process is one of the most well-established and widely embraced technologies worldwide for improved oil recovery. The method is appropriate for heavy, viscous crude oil and involves introducing thermal energy into the reservoir to increase the temperature of the oil and decrease its viscosity. Natural gas is mainly used to generate thermal energy. However, in recent years, solar Enhanced Oil Recovery has gained popularity over its environmental advantages.

By Application Segmental Analysis

Based on application, the global enhanced oil recovery market is segmented into Onshore and Offshore. Onshore wells offer several benefits over offshore such as availability of resources, economical cost of production, founded technology, reservoir performance, and others. Hence, a significant share of global oil is created from land-based wells. Most of the Enhanced Oil Recovery deployed around the world contains onshore wells. The implementation of onshore EOR is economical as compared to offshore. Nevertheless, increasing investment in discovering untapped hydrocarbon reserves will probably provide lucrative opportunities in the offshore segment.

By Regional Segmental Analysis

Based on region, the global enhanced oil recovery market is segmented into North America, Europe, Asia-Pacific, South America and The Middle East & Africa. North America is owing to the extensive adoption of the process in the United States. The US Department of Energy (DoE) works with several companies to execute EOR projects to increase production. Moreover, the United States offers several motivations, such as US section 45Q tax credit to provide a tax reduction of USD 35/tCO2 for 12 years for CO2 stored in EOR operations, which aids its market share domination. During the pandemic, US crude oil price falls to a 17-year low, putting the hereafter of the hydrocarbon industry in the dark.

Competitors Analysis

The companies include Chevron, Oxy, BP, Husky Energy, ConocoPhilips, China National Petroleum Corporation, China Petrochemical Corporation, Cairn Oil & Gas, Petrobras, Ecopetrol and other prominent players in the global enhanced oil recovery market.

Key Stakeholders

Market research and consulting firms
Industry associations
Global Enhanced Oil Recovery Manufacturing Firms
Local Governments
Regulatory bodies
Suppliers
Retailers

Recent Developments

In July 2021, Petrofac secured work for the Ithaca Energy Captain field worth approximately USD 17 million. The project is anticipated to recover around 40 million barrels of oil equivalent and will be liable for the commissioning, fabrication, and construction of the new topsides development, supplying onshore and offshore works.
In July 2021, Sinopec created one of china’s largest carbon capture, utilization, and storage scheme. The company plans to conduct 24 CO2 EOR projects concerning the reinjection of carbon dioxide to a targeted zone with 25 million tons of oil in place. Sinopec further intends to reinject 10.68 million tons of carbon dioxide over the next 15 years and is expected to improve the total oil production by around 22 million barrels.
In May 2021, Talos Energy reported drilling the Tornado Attic well with Seadrill’s West Neptune drillship in the deepwater Gulf of Mexico. The firm projects that the Tornado Attic well is developed to improve its waterflood enhanced oil recovery scheme in the Tornado field, and it anticipates effectively improving the productivity by around 25 to 35 million barrels of oil equivalent from the field.

Scope of the Report

Report Attribute	Details
Revenue in 2021	USD 52.4 billion
The revenue forecast in 2028	USD billion
Growth Rate	CAGR of 4.1 % from 2022 to 2028.
Historical data	2017 – 2020
Base Year	2021
Forecast period	2022 – 2028
Region covered	North America, Europe, Asia-Pacific, South America, and Middle East & Africa
Key companies Profiled	The key players are Chevron, Oxy, BP, Husky Energy, ConocoPhilips, China National Petroleum Corporation, China Petrochemical Corporation, Cairn Oil & Gas and Petrobras, and Ecopetrol.

Market Modelling

By Technology

Thermal Injection
Gas Injection
Chemical Injection

By Application

Onshore
Offshore

By Region

North America
Europe
Asia Pacific
South America
The Middle East & Africa

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Table Of Contents

Methodology

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Frequently Asked Questions (FAQ):

What is the market size of the global enhanced oil recovery market?

The global Enhanced Oil Recovery market size was USD 52.4 billion in 2021 and is predicted to grow at a CAGR of 4.1% from 2022 to 2028.

What are the growth drivers in the global enhanced oil recovery market?

What are the restraints in the global enhanced oil recovery market?

Who are the key players in the global enhanced oil recovery market?

The key players are Chevron, Oxy, BP, Husky Energy, ConocoPhilips, China National Petroleum Corporation, China Petrochemical Corporation, Cairn Oil & Gas and Petrobras, and Ecopetrol in the global enhanced oil recovery market.

Which region is expected to have the largest share in the global enhanced oil recovery market?

North America is expected to have the largest share in the global enhanced oil recovery market.

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Global Enhanced Oil Recovery Market