Global Enhanced Oil Recovery Market
The GMI Research forecasts that the Enhanced Oil Recovery Market is witnessing an upsurge in demand over the forecast period. This is mainly due to the increasing number of old wells along with decreasing production from existing oilfields.
Introduction of the Enhanced Oil Recovery Market
Enhanced oil recovery (EOR) is a unique technique used by upstream oil and gas companies to increase the amount of crude oil extracted from a field over and above what is recovered through the basic water flooding method.
Key Players of the Global Enhanced Oil Recovery Market:
- Baker Hughes Company
- Chevron Corporation
- bp p.l.c.
- Oil and Natural Gas Corporation Ltd.
- Schlumberger Limited.
- Exxon Mobil Corporation
- Royal Dutch Shell Plc
- Halliburton Co.
Enhanced Oil Recovery Market Dynamics (including market size, share, trends, forecast, growth, forecast, and industry analysis)
The accelerating number of gas injection-based EOR technologies which include CO2 and natural gas injection, accompanied by the surging demand for oil and gas extrication activities led by the increasing emphasis of companies to raise the production from old and mature fields, are the most prominent drivers responsible for the growth of the global enhanced oil recovery market. Thereby, several upstream oil organizations are focussing on recovery and extend the lifespan of aged fields with the assistance of these technologies. Also, the technology helps to expand the absorbency of the reservoirs so that hydrocarbons can flow easily through pathways. The EOR technology methods improve the production from mature wells by approximately 10-20% than traditional methods. Thereby, the mounting number of grizzled wells leading to less oil production strengthens the enhanced oil recovery market size. Furthermore, the strategic initiatives by the US government to commercialize the technology have stimulated the nation's demand. For example, the U.S. Department of Energy (DoE) offers allowance to private oil companies and universities for research-related activities to innovate the EOR technologies.
However, the declining prices of crude oil may hamper market growth. Moreover, the widespread and sudden outbreak of the coronavirus pandemic has further reduced oil prices. This reduced the planned capital expenditure, which is curbing the enhanced oil recovery market share.
Technology Segment Drivers
Based on the technology, thermal is predicted to hold a major share in the market. This method helps to lower down the oil viscosity and improves its mobility ratio as it includes the application of heat on the oil wells. The technology is used in shallow wells with higher oil viscosity, like heavy oil and tar sand. Moreover, the growing attention toward eco-friendly and economically viable solutions will proliferate the market growth.
Application Segment Drivers
Based on the application, onshore is contemplated to lead the market in the near future. This is because of the increasing number of onshore exploration and production operations. Reduction in conventional operational costs for onshore oilfields than the offshore oilfield further drives the market growth. Moreover, the escalating usage of digital technologies and the decreasing production rate further supplements the market growth. The oil field operators are integrating sensors and using extensive data analytics tools offering real-time data has stimulated the market growth.
Based on the regional coverage, North America will witness a higher CAGR over the forecast period. This is primarily because of the prevalence of large numbers of mature oil and unconventional oil and gas resources. These ancient wells will require sophisticated oil extraction techniques to increase the production of oil. Furthermore, the U.S. government has initiated funding heavily towards EOR projects which will commercialize the technology. The U.S. Department of Energy (DoE), in 2019, declared USD 40 million aid for research and development activities concerned for EOR technology, aiming to reduce the technical risk and the expansion of EOR applications across conventional and unconventional oil reservoirs.
Enhanced Oil Recovery Market Segmentation:
Segmentation by Technology
- CO2 Injection
Segmentation by Application
Segmentation by Region:
- North America
- United States of America
- Asia Pacific
- Rest of APAC
- United Kingdom
- Rest of Europe
- South Africa
- Saudi Arabia
- Rest of the world (remaining countries of the LAMEA region)
About GMI Research
GMI Research is a market research and consulting company that offers business insights and market research reports for every enterprise, including small & medium enterprises and large organizations. Our research team helps the clients to understand the impact of market dynamics such as market size, share, drivers, growth opportunities, and other aspects. We have a team of analysts and industry experts who conduct market intelligence studies to ensure relevant and fact-based research across a wide range of sectors such as FMCG, Technology, Energy, Healthcare, and other industries. We collect relevant information about the industry using both internal and external databases. Our main focus is to keep our clients abridged of the emerging opportunities and challenges in a wide range of industries. We provide step-by-step assistance to our client through strategic and consulting services to reach a managerial and actionable decision. Featured in the ‘Top 20 Most Promising Market Research Consultants’ list of Silicon India Magazine in 2018, we at GMI Research are always looking forward to helping businesses stay ahead of the curve.
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