Enhanced oil recovery (EOR) is the extraction of crude oil chemically, thermally, or physically from an oil field that cannot be extracted otherwise. The EOR method is used when the primary and secondary methods are unproductive; hence, it is called tertiary recovery. Various techniques used in enhanced oil recovery include gas injection, microbial injection, and thermal injection. Tertiary recovery is used for the production of liquid hydrocarbons by using various techniques, which will propel the market growth during the forecast period. The usage of enhanced oil recovery technologies in the offshore basins is expected to boost the market growth, due to the gradual rise in the development of offshore wells in deep and ultra-deep waters in regions such as Gulf of Mexico, North Sea, and South China Sea. However, most of the traditional onshore basins in countries such as Saudi Arabia, China, and Russia have been witnessing declining production rates. As a result, high demand to extract the remaining recoverable hydrocarbons is expected to fuel the need for EOR techniques in the upcoming years.
COVID-19 scenario analysis
The outspread of coronavirus has impacted many oil &gas companies; thus, the demand and price of the crude oil has declined drastically. Moreover, government ban on international travel has reduced the consumption of fuels. The shutdown of factories is further expected to reduce the demand for oil during the forecast period. Similarly, mining activities are suspended to prevent the further spread of the virus. Thus, the outbreak of COVID-19 has a negative impact on the growth of the global enhanced oil recovery market.
Market scenario analysis
Upsurge in the number of aged wells and increase in demand for oil are the factors expected to fuel the enhanced oil recovery market growth during the forecast period. Rise in demand for oil, presence of large number of oil wells, and increase in imports in the Asia-Pacific region are expected to augment the market growth in the forecast years. Furthermore, enhanced oil recovery market is expected to witness significant growth in regions such as Africa and the Asia-Pacific. Such regions have huge unexplored oil &gas reserves, which are necessary to meet the growing demand for energy. The huge oil reserves in those regions offer lucrative opportunities for market players.
Market trends
Decreasing production in existing oil fields and increase in number of mature wells are expected to increase the adoption of enhanced oil recovery services. Moreover, technological advancements and improvement in the performance of mining and drilling activities increase the requirement of EOR techniques. The introduction of hybrid systems to reduce the overall cost and microbial EOR methods to reduce environment impact is a recent trend observed, which will boost the market growth during the forecast period.
Market Drivers & Restraints
The major factor driving the growth of the enhanced oil recovery market is surge in demand for oil &gas across the world. Increase in number of oil well and its recovery rates coupled with favorable government policies for suitable infrastructure and technological advancements for the production drive the market during the forecast period. Owing to rise in demand for energy, conventional oil &gas resources are depleting at a faster pace. Therefore, to meet the ever-increasing energy demand, major oil companies are shifting toward unconventional oil &gas reserves for the exploration of shale oil, shale gas, tight oil, tight gas, and coal bed methane, which involves the utilization of enhanced oil recovery. Some of the restraints identified in the enhanced oil recovery market are the fluctuations in oil prices, environmental issues such as brine contamination, and the requirement for high capital for the exploration of oil wells. Moreover, political conflicts in major oil-producing countries, such as Russia, Venezuela, and Iran are expected to hinder the market growth of enhanced oil recovery.
Regional insights
North America is the leader in the global enhanced oil recovery market, and is expected to grow significantly during the forecast period. This is attributed to surge in number of matured wells in the U.S. is the major contributor in the region. Asia-Pacific region is expected to grow at a faster rate during the forecast period. This growth of the market is attributed to increase in industrialization and expansion of the oil & gas industry in this region.
Key benefits of the report
- This study presents the analytical depiction of the global enhanced oil recovery industry along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the global enhanced oil recovery market share.
- The current market is quantitatively analyzed to highlight the global Enhanced oil recovery market growth scenario.
- The report provides a detailed market analysis depending on competitive intensity and how the competition will take shape in coming years.
Enhanced Oil Recovery Market Report Highlights
| Aspects | Details |
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 Key Market Players | Lukoil, Exxon Mobil, British Petroleum, Total, Royal Dutch Shell, Wintershall, ConocoPhillips, Chevron, Canadian Natural Resources, National Aluminium Company, Halliburton, Cenovus Energy, China National Petroleum Corporation, Titan Oil Recovery, Denbury Resources, Praxair Technology, ADNOC, Baker Hughes Schlumberger, Husky Energy, Kinder Morgan, Occidental Petroleum, Statoil |
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