GVR Report cover Enhanced Oil Recovery Market Size, Share & Trends Report

Enhanced Oil Recovery Market Size, Share & Trends Analysis Report By Technology (CO2 Injection, Thermal), By Application (Onshore, Offshore), By Region, And Segment Forecasts, 2020 - 2027

  • Published Date: Aug, 2020
  • Base Year for Estimate: 2019
  • Report ID: 978-1-68038-343-0
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 150

Report Overview

The global enhanced oil recovery market size was valued at USD 46.4 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 3.7% from 2020 to 2027. An increasing number of aged wells along with decreasing production from existing oilfields is expected to drive the market over the forecast period. The enhanced oil recovery (EOR) technology enhances oil production from mature and aged oil fields, by almost 10 to 20% as compared to the conventional oil extraction methods. Mature wells are those oil reserves where production has reached its peak and has started to decline owing to poor permeability or exhibit heavy oil. Technically, EOR increases the permeability of the reservoir so that hydrocarbons can flow through the pathways easily and into the targeting producing well.

The U.S. enhanced oil recovery market size

The U.S. market is anticipated to witness significant growth on account of the growing exploration of unconventional oil and gas resources. Furthermore, government funding aimed at commercializing the EOR technology is anticipated to positively influence the industry landscape. For instance, the U.S. Department of Energy (DoE) provides funding to private companies and universities for research purposes for advancements in EOR technologies.

Furthermore, the number of CO2 injection-based EOR projects started from 2017 to 2020 in the U.S., which resulted in a dominating share of CO2 injection technology over other available technology in the country. For instance, oil production in the Permian Basin has shown a significant rise in oil production with the use of CO2-EOR technology. These developments are expected to boost the growth of the EOR market in the U.S. in the forecast period.

Falling crude oil prices are expected to have a negative impact on the oil & gas industry and may restrain the market growth over the forecast period. The COVID-19 pandemic has led to a drastic drop in the oil prices in 2020. This resulted in reductions in planned capital expenditure and implementation of cost-cutting actions by oil companies across the globe, which is expected to hinder the market growth.

However, rising concerns regarding carbon emissions have resulted in enhanced demand for the Carbon Capture and Storage (CCS) market, which has emerged as a viable solution to limit carbon emissions. These factors are expected to positively impact the market as captured carbon in CCS projects is usually utilized by the oil & gas companies for CO2 injection EOR technology.

Technology Insights

The thermal technology segment occupied the largest market share of over 39% in 2019. The method entails the application of heat on the oil wells for lowering the oil viscosity and increasing its mobility ratio. It is mostly applied in shallow wells with higher viscosity for instance heavy oil and tar sand. This technology is being utilized in countries, such as the U.S., Canada, Oman, and Russia.

CO2 injection technology is estimated to register the fastest CAGR during the forecast period. It injects carbon dioxide into the rock pores to recover the crude oil. CO2 is miscible with crude oil and is comparatively less expensive than other similar miscible fluids used for these applications, making it a preferred choice for EOR applications. In addition, this method provides highly significant environmental benefits thereby driving the demand for this technology.

Furthermore, stringent government regulations regarding the emission reduction from oil industry activities is resulting in increased adoption of CCS technology, wherein the carbon released from refineries is captured and injected into the depleting oilfields for the EOR process. These factors will boost the growth of the CO2 injection technology segment.

Chemical EOR technology involves the use of polymers and surfactants which are injected in the oil well which results to reduce interfacial pressure and enhances flooded viscosity which increases the production from the oil well. Chemical-based EOR technology is being utilized in countries such as China, Russia, Colombia, and Canada.

Application Insights

The onshore segment occupied the largest market share of over 89% in 2019 owing to the presence of a number of onshore exploration and production projects across the world. Lower conventional extraction costs for onshore oilfields than the offshore oilfields has driven the segment growth.

The segment will expand further at the fastest CAGR from 2020 to 2027. The EOR techniques are being deployed in the conventional onshore basins, witnessing declining production levels across Saudi Arabia, Russia, and China. These factors are expected to positively influence the segment growth.

Global enhanced oil recovery market share

The steady development of the existing offshore wells particularly in the South China Sea, the Persian Gulf, North Sea, and the Gulf of Mexico, is expected to drive the offshore segment growth over the forecast period. Furthermore, operators, such as BP, Statoil, and Repsol, are testing the techno-economic feasibility of EOR in the offshore oil fields.

However, the offshore oil industry is expected to witness sluggish growth due to high capital investments and operating costs coupled with pandemic impact. These factors will cause hindrance in the growth of the offshore oil industry. However, with the ongoing technological advancements in the offshore segment will drive its growth.

Regional Insights

North America led the global industry in 2019 and accounted for over 38% of the global share, with the U.S. being the major contributor to the regional market. The growth can be attributed to the presence of several unconventional oil and gas resources and matured fields in the country, requiring advanced extraction techniques to boost production from existing wells. Furthermore, leading oil & gas exploration companies in Canada are also utilizing EOR technology to efficiently recover the oil from fields.

Increasing government funding towards EOR projects is expected to further commercialize the technology. For instance, in 2019, the U.S. DoE announced USD 40 million funding for research and development activities aimed at reducing the technical risk in enhanced oil recovery while simultaneously expanding EOR applicability across conventional and unconventional reservoirs.

Asia Pacific is anticipated to witness the fastest growth rate over the forecast period, with China occupying the largest market share across the region. Rising oil and gas demand from the major economies including China and India along with the increased deployment of EOR in aged wells to meet the production targets are estimated to bolster the market growth in the Asia Pacific.

The enhanced oil recovery market in Middle East & Africa was led by Oman in 2019 and is expected to hold its dominance in the forecast period. New EOR projects are expected to come online in countries, such as Saudi Arabia, UAE, Qatar, and Kuwait, which will result in enhanced growth of the market in the region.

Key Companies & Market Share Insights

The market is highly competitive and moderately consolidated with the presence of multinational companies. The oil & gas exploration companies procure raw materials, such as a polymer, carbon dioxide, nitrogen, and others, from specialized vendors. The technologies used in EOR are usually in-housed by the oil & gas exploration companies. Market players are venturing towards extracting oil from existing reserves to maximize their production targets. Moreover, increasing investments in R&D activities to develop cost-effective oil recovery technology is expected to further fuel industry growth. Some of the prominent players in the enhanced oil recovery market include:

  • ExxonMobil Corporation

  • BP plc

  • Royal Dutch Shell plc

  • Total SA

  • Chevron Corporation

Enhanced Oil Recovery Market Report Scope

Report Attribute


Market size value in 2020

30.9 billion

Market volume in 2020

819.4 million bbl

Revenue forecast in 2027

62.1 billion

Volume forecast in 2027

1035.0 million bbl

Growth Rate

CAGR of 3.7% from 2020 to 2027 (Revenue-based)

Base year for estimation


Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Volume in million bbl, revenue in USD million and CAGR from 2020 to 2027

Report coverage

Volume forecast, revenue forecast, competitive landscape, growth factors, and trends

Segments covered

Technology, application, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country scope

The U.S.; Canada; Russia; The U.K.; China; India; Brazil; Oman; Saudi Arabia

Key companies profiled

ExxonMobil Corp.; BP plc; China Petroleum & Chemical Corp.; Total SA; Royal Dutch Shell plc; Chevron Corp.; Petróleo Brasileiro S.A.; LUKOIL; Cenovus Energy, Inc.; Equinor ASA

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global enhanced oil recovery market report on the basis of technology, application, and region:

  • Technology Outlook (Volume, Million bbl; Revenue, USD Million, 2016 - 2027)

    • Thermal

    • CO2 Injection

    • Chemical

    • Others

  • Application Outlook (Volume, Million bbl; Revenue, USD Million, 2016 - 2027)

    • Onshore

    • Offshore

  • Regional Outlook (Volume, Million bbl; Revenue, USD Million, 2016 - 2027)

    • North America

      • The U.S.

      • Canada

    • Europe

      • Russia

      • The U.K.

    • Asia Pacific

      • China

      • India

    • Central & South America

      • Brazil

    • Middle East & Africa

      • Oman

      • Saudi Arabia

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