Market Snapshot
| Study Period: | 2018- 2026 |
| Base Year: | 2021 |
| Fastest Growing Market: | Asia Pacific |
| Largest Market: | North America |
| CAGR: | >1.5 % |
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Market Overview
The enhanced oil recovery (EOR) market is expected to register a CAGR of more than 1.5% during the forecast period of 2021 – 2026. The COVID-19 pandemic has severely affected the shale and heavy oil market, which accounts for a large usage of the EOR techniques. Factors such as the increasing number of maturing oil fields and improving technologies to introduce better oil recovery techniques are likely to drive the EOR market during the forecast period. However, the volatility of crude oil prices is expected to restrain the growth of the market in the coming years.
- Gas injection technique is expected to be the largest segment for the EOR market during the forecast period, with CO2 injection increasing globally, representing about 20% of total oil production from EOR in 2018 and its positive impact on environmental issues.
- The discovery of new oil and gas fields, particularly in new markets such as Africa and South America, is expected to create ample opportunities in the near future.
- Asia-Pacific is expected to witness significant growth, owing to the increasing investments in the upstream sector by several governments and aging oil and gas fields which demand enhanced oil recovery techniques.
Scope of the Report
The enhanced oil recovery (EOR) market report includes:
| Technology | |
| Gas Injection | |
| Thermal Injection | |
| Chemical Injection | |
| Microbial Injection | |
| Other Technologies |
| Location | |
| Onshore | |
| Offshore |
| Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| South America | |
| Middle-East and Africa |
Key Market Trends
Gas Injection Technique to Dominate the Market
- Gas injection offers advantages, such as reduction of oil viscosity and added pressure in the reservoir for oil production. With increasing focus on unconventional gas production across the world, the demand for gas injection-based EOR techniques is expected to increase during the forecast period.
- In 2019, the Government of the United States proposed legislation to promote the carbon capture improvement act. According to this act, the government is to promote collaboration between the oil and gas industry and the power plants and industrial plant operators for the carbon sequestration process; the oil and gas operators are expected to help the other industries in carbon sequestration, which can be used by the former for CO2 injection.
- In 2020, due to the shale boom, the United States had become a net exporter of natural gas and had become a net oil exporter by September 2019, which was earlier estimated to be in 2027. In 2018, According to International Energy Agency(IEA), the gas injection was expected to account for approximately 60% of EOR production in the United States, with a growing emphasis on CO2-based EOR.
- 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.
- Hence, the CO2 injection segment is expected to maintain a significant share in the EOR market during the forecast period.
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Asia-Pacific to Witness Significant Growth
- With its increasing demand for oil and gas from major countries such as China and India, Asia-Pacific is propelling the need for EOR in their mature fields to sustain the oil and gas production targets, which is anticipated to drive the demand for EOR services.
- As of 2019, there were approximately 30 EOR projects in the Asia-Pacific region, of which approximately 58% were categorized under the chemical and CO2 miscible injection types, with China leading the chemical injection segment of the market studied.
- The producing oilfields of India are continually aging, with the average recovery factor remaining continuously below the global average. As a part of the broader 'Energy Security' program, the government has set a goal to reduce 10% of crude oil import by 2022, with EOR emerging as an answer for the same.
- State-run company - ONGC of India has announced its plans to invest INR 57,825 crore on 28 EOR projects, while Cairn India plans to spend INR 37,000 crore to ramp up production using EOR. Such similar investment by the oil and gas operators and the government is expected to significantly attract international EOR players to India during the forecast period.
- Hence, Asia-Pacific is expected to witness growth in this sector due to the large production of heavy crude oil and push toward optimum carbon dioxide utilization.
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Competitive Landscape
The enhanced oil recovery (EOR) market is moderately fragmented. Some of the major players in the market include Halliburton Company, Baker Hughes Company, Total SA, Chevron Corporation, and Schlumberger Limited.
Recent Developments
- Oil and Natural Gas Corporation Limited (ONGC) signed an MoU with Indian Oil Corporation Limited (IOCL) on July 1, 2019, for CO2-based enhanced oil recovery (EOR) by injecting CO2 captured from IOCL’s Koyali refinery. The MOU eyes to reduce India’s carbon emission targets as outlined in COP21 while enhancing production from domestic fields.
- Occidental Petroleum started up its first solar facility to power enhanced oil recovery (EOR) in the Permian Basin of West Texas. The 16-MW facility in Ector County, near Odessa, powers the Goldsmith field through the deployment of 174,000 photovoltaic panels. First Solar, which manufactured the panels, operates the facility under a contract with Oxy Low Carbon Ventures (OLCV). This has been seen as a method to make oil carbon neutral.
- Chevron secured approval from the United Kingdom Oil and Gas Authority (OGA) for its field development plan (FDP) of Stage 1 of the Captain Enhanced Oil Recovery project (Captain EOR project) in the UK Central North Sea. Chevron’s investment in EOR technology, the first of this kind to be deployed in the North Sea, is expected to unlock millions of extra barrels of oil, adding several years to the life of this mature asset, demonstrating substantial progress toward Vision 2035.
Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD billion, till 2026
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.2 Restraints
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes Products and Services
4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Technology
5.1.1 Gas Injection
5.1.2 Thermal Injection
5.1.3 Chemical Injection
5.1.4 Microbial Injection
5.1.5 Other Technologies
5.2 Location
5.2.1 Onshore
5.2.2 Offshore
5.3 Geography
5.3.1 North America
5.3.2 Europe
5.3.3 Asia-Pacific
5.3.4 South America
5.3.5 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Baker Hughes Co.
6.3.2 BP PLC
6.3.3 Chevron Corporation
6.3.4 Exxon Mobil Corporation
6.3.5 Halliburton Co.
6.3.6 Praxair Technology Inc.
6.3.7 Royal Dutch Shell PLC
6.3.8 Schlumberger Ltd
6.3.9 Total SA
6.3.10 Weatherford International PLC
*List Not Exhaustive7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Enhanced Oil Recovery (EOR) Market market is studied from 2018 - 2026.
What is the growth rate of Enhanced Oil Recovery (EOR) Market?
The Enhanced Oil Recovery (EOR) Market is growing at a CAGR of >1.5% over the next 5 years.
Which region has highest growth rate in Enhanced Oil Recovery (EOR) Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Enhanced Oil Recovery (EOR) Market?
North America holds highest share in 2020.
Who are the key players in Enhanced Oil Recovery (EOR) Market?
Halliburton Company, Baker Hughes Company, Total SA, Chevron Corporation , Schlumberger Limited are the major companies operating in Enhanced Oil Recovery (EOR) Market.
