Market Insights
The global enhanced oil recovery (EOR) market is likely to grow at a considerable rate over the forecast period. The factors anticipated to drive the market for EOR are increasing effectiveness in the production of crude oil and growing deep drilling activities.
EOR technology is based on tertiary recovery, and this term is used for the production of liquid hydrocarbons by using techniques other than the conventional ones. These conventional methods constitute of artificial lifts or reservoir re-pressurizing techniques. The widening gap between demand and supply of fossil fuels is leading Governments and organizations to make use of EOR technologies in order to optimize their production.
The EOR market is likely to become less attractive over time due to volatile oil prices, making the process of oil extraction very costly. This can be a potential reason for the market to slow down.
Enhanced Oil Recovery Market: Technique Insights
The chemical and gas injection techniques are gaining share significantly, holding close to 50% of the total revenue share. These technologies have a higher recovery rate and are cost-efficient. Its advantages over other methods such as an increase in pressure in the reservoir resulting in more oil production are expected to lead to its growth. Injected gas mixes with oil making it soluble, due to which the oil viscosity decreases. Carbon dioxide, nitrogen, and natural gas are the most common gases used for the method.
Enhanced Oil Recovery Market: Application Insights
The EOR market has two applications- Onshore and offshore. The onshore area is dominant in the industry and holds more than 65 % of the global share. This is due to the presence of larger number of mature and aged wells as opposed to the offshore segment. The Enhanced Oil Recovery technology is generally employed in the onshore segment. Many offshore oil reserves have also been discovered since past few decades. Extraction for an offshore reserve is an expensive process, which is why many companies are also applying recovery technique in primary or secondary oil production phase to optimize oil extraction.
The major challenges faced by offshore technology are the weight and space limitations of existing offshore facilities. Other EOR applications such as low-salinity water flooding are gaining popularity as well. The offshore enhanced oil recovery market is expected to witness substantial growth, owing to technological advancement and subsea processing.
Enhanced Oil Recovery Market: Regional Insights
North America is the industry leader owing to the presence of a large number of mature wells and large-scale development of unconventional energy in the region. Most recently, In January 2018, the US Department of Energy decided to invest USD 30 million to boost unconventional recovery.
Rapid industrialization and expanding oil & gas industry in the Asia Pacific is expected to further drive the market. Initiatives by the government in economies such as China and India, to facilitate infrastructural development in the petroleum industry are expected to boost the market in the near future. The market for EOR in North America and Europe are relatively mature.
Increasing concerns regarding extreme temperature operating conditions, well blowout, and wellbore stability are expected to drive the demand for oilfield services in offshore and onshore regions in the Middle East & Africa.
Enhanced Oil Recovery Market: End-Use Landscape
The end-use landscape entails a list of current and prospective consumers prevailing across the regions. This section provides company addresses, contact details, products, and regional presence of companies who are purchasing or are likely to purchase Enhanced Oil Recovery (EOR) over the coming years. Some of the potential consumers of the market include BASF, Dow Chemical, and Sinopec.
Enhanced Oil Recovery Market: Vendor Landscape
The report contains a chapter dedicated to vendors operating in the market, covering raw material manufactures, equipment developers, manufacturers, and distributors. The report provides these insights on a regional level. This section of the report entails contact details, experience, products manufactured/supplied, and geographical presence of companies.
Enhanced Oil Recovery Market Share & Competitor Analysis
Some of the major companies operating in the industry are BP plc, ExxonMobil Corporation, Lukoil Oil Company, Royal Dutch Shell plc, Chevron Phillips Chemical Company LP, Praxair Technology, Inc., Chevron Corporation, Cenovus Energy Inc. China Petroleum & Chemical Corporation, and Schlumberger Ltd,
In October 2017, Chevron sanctioned the stage 1 EOR Project. The project is expected to improve the recovery rate from older fields and help extend the life of assets.
Companies are actively investing in R&D to tackle environmental and fiscal concerns pertaining to thermal EOR. Stringent governmental regulations have compelled companies to innovate in the thermal EOR process so as to reduce CO2 emissions.
The report segments the Enhanced Oil Recovery Market on the basis of:
By Technique
Thermal
Gas Injection
Chemical
Other EOR
By Application
Onshore & Offshore
By Region:
North America
Europe
Asia Pacific
Central & South America
Middle East & Africa
This article contains text from the ‘Enhanced Oil Recovery Market Size, Trends & Analysis – Forecasts To 2025 ’ report prepared by Global Market Estimates. For more information or to buy the report, please visit: https://www.globalmarketestimates.com/enhanced-0il-recovery-market/
Check our annual research partnership service at: https://www.globalmarketestimates.com/annual-research-partnership-services/