Enhanced Oil Recovery Market Analysis North America, Europe, APAC, Middle East and Africa, South America - US, Canada, Norway, Russia, China, UK - Size and Forecast 2024-2028

Enhanced Oil Recovery Market Size 2024-2028 

The enhanced oil recovery market size is forecast to increase by USD 23.81 billion, at a CAGR of 8.51% between 2023 and 2028. Market growth hinges on numerous factors, including the exploration of unconventional resources, the development of mature hydrocarbon assets, and efforts to increase the ultimate recovery of oil and gas. Unconventional resources offer new opportunities for extraction beyond traditional reserves, driving innovation and expanding production capabilities. Simultaneously, advancements in technology and methodologies for mature hydrocarbon assets enable the extraction of remaining reserves efficiently. Moreover, strategies aimed at enhancing the ultimate recovery of oil and gas fields through enhanced oil recovery techniques contribute significantly to sustained market expansion. These factors collectively shape the landscape of the energy sector, fostering growth and resilience amidst evolving global demands. As industries continue to prioritize efficiency and sustainability, the strategic utilization of these factors is poised to play a pivotal role in shaping the future trajectory of the market.

What will be the Size of the Market During the Forecast Period?

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Market Dynamic and Customer Landscape

The market is a significant segment in the oil and gas industry, focusing on extracting hard-to-reach hydrocarbons from mature oilfields and heavy oil reserves. EOR technologies, including thermal EOR, gas injection, chemical injection, and hot water injection, play a crucial role in improving the productivity of aging wells and oil reservoirs with poor permeability. EOR processes are essential for the exploitation of heavy oil reserves and LNG project constructions. Thermal EOR techniques, such as steam injection and in-situ combustion, are commonly used to enhance the recovery of heavy oil. These methods involve injecting steam into the reservoir to reduce the viscosity of the heavy oil, making it easier to flow.

Additionally, the market is driven by the increasing demand for oil and gas, the depletion of conventional oil reserves, and the need to maximize the recovery of hydrocarbons from mature oilfields. Primary and secondary recovery methods, such as natural gas injection and water flooding, have reached their limits in many reservoirs, making EOR technologies an essential tertiary oil recovery solution. EOR technologies are gaining popularity due to their ability to extract oil from reservoirs that were previously considered uneconomical to produce. The market is expected to grow significantly in the coming years, driven by the increasing focus on reducing greenhouse gas emissions and the need to find sustainable solutions for energy production.

Key Market Driver

Exploring unconventional resources is notably driving market growth. As the global oil industry shifts focus toward maximizing production from existing oil reservoirs, Enhanced Oil Recovery (EOR) techniques have gained significant importance. With the decline in the discovery rate of new conventional hydrocarbon resources, the offshore oil industry is increasingly turning to EOR processes to extract residual oil from mature offshore oilfields. Repsol, along with other oil and gas companies, is investing in advanced EOR technologies such as Tertiary oil recovery, which includes Thermal Injection, Gas Injection, Chemical Injection, Hot Water, and Surfactant solutions, to enhance oil recovery beyond Primary and Secondary recovery methods. Government subsidies, tax benefits, and financial incentives are driving the adoption of EOR technologies in the oil industry.

For instance, CO2 injection for EOR is gaining popularity due to its potential to reduce greenhouse gas emissions, making it an attractive option for power generation. Additionally, the use of natural gas, nitrogen, and alkali for EOR is also increasing due to their effectiveness in improving oil recovery rates. The offshore oil industry's transition towards sustainable EOR methods is a significant step towards reducing the environmental impact of oil production while meeting the increasing energy demand. Thus, such factors are driving the growth of the market during the forecast period.

Significant Market Trends

Increasing R&D investment is the key trend in the market. The global enhanced oil recovery market is witnessing significant investment from oil and gas companies to optimize the extraction of oil from mature reservoirs, particularly in offshore oilfields. Traditional extraction methods, such as primary and secondary recovery, have reached their limits in many oil reservoirs. To address this challenge, the industry is turning to advanced tertiary recovery techniques, including thermal injection, gas injection, chemical injection, hot water flooding, and the use of surfactant solutions, alkali, natural gas, nitrogen, carbon dioxide, and other technologies. These methods can significantly increase oil recovery rates, making it an essential strategy for the offshore oil industry.

Further, governments are also recognizing the importance of enhanced oil recovery and are providing financial incentives, such as subsidies, tax benefits, and tax credits, to encourage investment in this area. The use of greenhouse gases like CO2 for injection in oil reservoirs is gaining popularity due to its potential for both increased oil production and power generation. However, the implementation of enhanced oil recovery techniques comes with challenges, including high upfront costs and potential environmental risks. As such, ongoing research and development efforts are crucial to mitigate these risks and reduce costs. Overall, the future of the enhanced oil recovery market looks promising, with increasing demand for fossil fuels and the need to maximize production from aging wells. Thus, such trends will shape the growth of the market during the forecast period.

Major Market Challenge

Environmental risks associated with enhanced oil recovery technologies is the major challenge that affects the growth of the market. Enhanced oil recovery (EOR) projects in the offshore oil industry involve advanced techniques beyond primary and secondary recovery methods to extract more crude oil from mature oil reservoirs. These projects are intricate, uncertain, and come with environmental challenges. EOR processes, such as thermal injection, gas injection, chemical injection using hot water, natural gas, nitrogen, carbon dioxide, or surfactant solutions, and alkali flooding, can lead to significant air, water, land, and groundwater pollution. Air emissions from steam generators are a concern, with SOx, NOx, H2S, and other particulates being released. High sulfur oil combustion contributes to high SOx emissions. Fugitive emissions of gases are generated within the reservoir during thermal injection operations.

Additionally, the necessity for substantial quantities of freshwater poses a challenge, particularly in regions where the recovery water may contaminate other water sources present underground. Government subsidies, tax benefits, and financial incentives, such as tax credits, play a crucial role in encouraging EOR projects. CO2 injection for EOR and power generation is gaining popularity due to its potential to reduce greenhouse gas emissions. Despite these advantages, it is essential to address the environmental concerns associated with EOR projects and implement effective mitigation strategies to minimize their impact on the environment. Hence, the above factors will impede the growth of the market during the forecast period

Exclusive Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Baker Hughes Co. - The company offers enhanced oil recovery technology with corrosion control services, organic deposit remediation and inhibition, natural and biogenic hydrogen sulfide mitigation and control.

The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• BP Plc
• Cenovus Energy Inc.
• ChampionX Corp.
• Chemiphase Ltd.
• Chevron Corp.
• Clariant International Ltd.
• DuPont de Nemours Inc.
• Halliburton Co.
• Japan Petroleum Exploration Co. Ltd.
• Linde Plc
• Oil and Natural Gas Corp. Ltd.
• Petroleum Development Oman LLC
• Qyrin Petroleum Technology
• Schlumberger Ltd.
• Shell plc
• TechnipFMC plc
• Titan Oil Recovery Inc.
• TotalEnergies SE
• XYTEL Corp.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Segmentation

By Technology 

The thermal injection segment is estimated to witness significant growth during the forecast period. Thermal injection involves the introduction of heat in the form of steam or hot water into the oil well. The heat increases reservoir temperature, reduces the viscosity of oil, and improves oil movement through the well. This technique is suitable for enhancing the recovery of heavy and viscous crude oils that have low mobility. During thermal recovery, crude oil undergoes physical and chemical changes due to the effects of the heat supplied. Physical properties such as viscosity, specific gravity, and interfacial tension are altered during the process.

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The thermal injection segment was the largest and was valued at USD 21.42 billion in 2018. During the process, usually, a shift in rock wettability occurs, which enhances the chances for better oil recovery and thus, it is the most preferred technology over others. However, factors such as the generation of large volumes of greenhouse gas emissions in thermal injection as compared to chemical will hinder the adoption of the segment, which, in turn, will negatively impact the segment during the forecast period

Regional Analysis

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North America is estimated to contribute 38% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market in North America is experiencing significant growth due to the presence of a vast mature oil and gas asset base, particularly in the Gulf of Mexico. Additionally, the region holds considerable potential for unconventional resources, including heavy oil reserves in Canada, shale reserves in the US, and aged wells in Mexico and Argentina. In the US, thermal EOR techniques, such as steam injection and in situ combustion, account for approximately 40% of the total EOR production. The remaining 60% is derived from gas injection techniques. The US Department of Energy estimates that CO? injection technology could recover an additional 39-48 billion barrels of oil in the country before 2030. EOR technologies play a crucial role in extracting hydrocarbons from reservoirs with poor permeability, heavy oil, and high oil viscosity. Thermal techniques increase oil mobility ratio by applying heat to the reservoir, while gas injection methods use miscible fluids or carbon dioxide to reduce interfacial pressure and improve flooded viscosity. LNG project constructions and the oil industry's ongoing activities further contribute to the market's expansion. However, the use of EOR technologies also raises concerns regarding carbon emissions and the need for government funding to support Carbon Capture and Storage (CCS) technology and the development of polymers and surfactants for improved EOR efficiency.

Segment Overview

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Technology Outlook
  • Thermal injection
  • Gas injection
  • Chemical injection
  • Others

• Application Outlook
  • Large Enterprise
  • Small and Medium Enterprise

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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Market Analyst Overview

The market is a significant segment within the oil and gas industry, focusing on extracting hard-to-reach hydrocarbons from mature fields. With the depletion of conventional oil reserves, the attention has shifted towards unconventional resources such as heavy oil reserves, shale reserves, and aged wells. EOR technologies, including thermal EOR, CO2 injection technology, and the use of miscible fluids, play a crucial role in improving the mobility ratio of oil in reservoirs with poor permeability. Thermal EOR techniques, like Steam Assisted Gravity Drainage (SAGD) and Cyclic Steam Stimulation (CSS), are widely used to enhance oil recovery from heavy oil reservoirs. These methods involve injecting steam into the reservoir to reduce oil viscosity and improve flow.

In situ combustion, another thermal EOR method, involves burning a portion of the heavy oil in place to generate heat and reduce oil viscosity. The onshore segment dominates the EOR market due to the presence of a large number of mature oilfields. However, the offshore segment is expected to witness significant growth due to the increasing number of LNG project constructions and the availability of large heavy oil reserves. The use of polymers and surfactants as EOR agents is also gaining popularity due to their ability to reduce interfacial pressure and improve flooded viscosity. The market faces challenges such as high capital costs, crude oil prices, and carbon emissions. Government funding and the adoption of Carbon Capture, Utilization, and Storage (CCS) technology are some of the potential solutions to address these challenges. The Permian Basin, with its vast shale reserves, is a major focus area for EOR activities due to the presence of heavy oil and the need to optimize oil industry activities.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market  and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behavior
• Growth of the market across North America, Europe, APAC, Middle East and Africa, and South America
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies