Global enhanced oil recovery (EOR) market was 2,095 million barrels in 2012. Depleting oil reserves coupled with heavy dependence on crude oil imports mainly in Asia Pacific is expected to drive global enhanced oil recovery (EOR) market. With increasing crude oil and natural gas demand, the production-demand gap is widening. On the other hand, peak oil theory is also achieved in most of the regions. Prevalence of aforementioned factors is expected to drive global EOR market over the next few years. Government initiatives for infrastructure development and advancements in EOR techniques are also expected to fuel the global market growth. Governments of countries such as China, Indonesia, Malaysia, and India are also expected to provide financial incentives and flexibility in tax regimes to attract multinational service providers to invest in the market. Fluctuating crude oil prices are also expected to drive EOR market over the next six years. Increasing requirements to extract hydrocarbons from unconventional and low permeability reserves such as tight sands and carbonate traps are expected to have a positive influence on the global EOR market growth. North American and European companies are majorly focusing towards R&D and improvising EOR techniques. Investing in upstream involves high risk and requires high investment which might restrain the market growth over the next few years. EOR projects usually take long lead time which increases the payback time. This is also anticipated to hinder further investments and hence, the market growth in the long run. Technological advancements coupled with the introduction of several modern techniques which utilize CO2 released in the production stage are estimated to have immense growth prospects in near future. With the technological advancements, offshore E&P activities are increasing which in turn is widening the scope for EOR techniques in this segment. Maturing and depleting oil reserves is estimated to fuel EOR market for both onshore and offshore wells.
Global enhanced oil recovery (EOR) market volume by technology, 2012-2020 (Million Barrels)
On the basis of technology, enhanced oil recovery market is segmented to thermal, gas injection and chemical injection. Thermal injection accounts for maximum share in the global EOR market. Thermal EOR is majorly categorized into in-situ combustion and steam injection techniques. Steam injection methods are mainly employed in oil sands. Major ongoing steam injection projects are centered towards oil sand reserves located in. In Alberta, oil is recovered from heavy oil sands using steam assisted gravity drainage technique. In-situ thermal injection techniques are currently being employed in Canada and Romania. Gas injection and chemical injection EOR techniques are also gaining market share globally owing to technology innovations and high recovery rates of these technologies. Chemical injection techniques are being employed in projects in Brazil, India, and Canada. Gas injection technology is estimated to project highest growth rates over the forecast period on account of its eco-friendly nature of reducing carbon emissions by utilizing it for crude oil extraction.
North America was the leading regional EOR market owing to the large-scale development of unconventional energy resources within the region. North America is estimated to lose market share to other high growth regions such as Asia Pacific and Central & South America. Rapid industrialization coupled with expanding oil & gas industry in Asia Pacific countries is expected to drive regional EOR market. This is further supported by favorable initiatives by governments of China and India to facilitate FDI and infrastructural development in oil & gas industry in the respective nations. The Middle East and South America is also expected to witness significant growth over the forecast period. Europe is expected to have stable growth in next five years owing to stringent environmental regulations and policies. Europe and North America are relatively mature markets.
Global enhanced oil recovery market is moderately consolidated owing to the presence of a number of regional players along with several integrated companies. Key companies involved are BP, Exxon Mobil, Chevron, and Royal Dutch Shell. Major industry participants are undergoing mergers and acquisitions to expand their global presence in the market. They have also adopted strategies including joint ventures, agreements, partnerships and contracts to increase their return on investment, minimize the risk involved in the business and sustain in the long run market. Other players are Praxair Technology Inc., China Petroleum & Chemical Corporation, Nalco Company, Conoco Phillips, Petronas, Cenovus Energy, Petrobras, Nalco Company, Statoil, and Lukoil.
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