Enhanced Oil Recovery (EOR) Market Size, Share & Trend Report

Enhanced Oil Recovery (EOR) Market Size, Share & Trend Analysis Report By Technology (Thermal, Gas Injection, Chemical), By Application (Onshore, Offshore), And Segment Forecasts, 2018 - 2025

  • Published Date: Feb, 2018
  • Base Year for Estimate: 2016
  • Report ID: 978-1-68038-343-0
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2016
  • Number of Pages: 129

Industry Insights

The global enhanced oil recovery (EOR) market size was estimated at 935.56 million barrels (in terms of total hydrocarbons produced using the technology) in 2016. Diminishing oil reserves and an increasing number of matured and aged wells are anticipated to drive the global EOR market growth. 

The increasing gap between production and demand of fossil fuels is widening. To overcome this gap, companies are using EOR techniques for extraction from reserves that have poor permeability, irregular faultiness, and exhibit heavy oil. Increasing number of aged wells coupled with the rising demand globally are the key factors for the market growth over the forecast period.

U.S. enhanced oil recovery market

Enhanced Oil Recovery is a process by which otherwise immobile residual oil is mobilized either physically, chemically or thermally. Tertiary recovery is the basis of EOR technology, and the term is used for the production of liquid hydrocarbons by using techniques other than the conventional ones. These conventional methods include artificial lifts or reservoir re-pressurizing techniques.

Globally, governments are taking initiatives for developing a proper infrastructure and advanced technology for oil production. Governments of Asian countries, such as Malaysia, Indonesia, China, and India are providing flexibility in tax regimes and financial incentives to attract multinational companies to invest in the market.

Thermal enhanced oil recovery (TEOR) has been the major technology for extraction from matured wells since past few years globally. Other technologies for instance chemical recovery and gas injection are growing at a significant rate owing to various advantages such as technology advancement and cost effectiveness.

Development of innovative technologies by key industry participants is an industry scenario. British Petroleum has developed the LoSal low-salinity waterflooding technology. The tool releases the oil that is stuck in the clay. Also, the company has developed the Bright Water EOR technology, and is based on microscopic particles, which are thermally activated. The particles expand deep into the reservoir, thus resulting in a diversion of injected water into poorly swept areas resulting in increased oil recovery. The company has deployed the technology in more than 140 wells across the globe. Such trends are expected to benefit the market growth over the forecast period.

Fluctuating crude prices from past two to three years is having a negative effect on the global demand. This price fluctuation is affecting the global oil recovery market as well. The ongoing projects are anticipated to have less effect and go forward. However, the new and upcoming projects will decline or have to take a different approach.

Technology Insights

On the basis of technology, the industry can be segmented into chemical, thermal, gas injection, and others which include plasma-pulse and more. The TEOR held around 42% of the global share in terms of revenue in 2016. In thermal recovery, oil is extracted through reserves by introducing heat into the subsurface accumulation of organic compounds. This is done through steam & fire flooding and reserve heating.

The chemical and gas injection techniques are gaining share significantly. These two recovery technologies together held around 49% of the total revenues share in 2016. These technologies have a higher recovery rate and are cost-efficient.

In gas injection technique, gasses (natural gas, carbon dioxide, or nitrogen) are injected into the reserves. These gasses expand and push other gasses of reserve which are dissolved within the oil, which decreases the viscosity and increases the flow. In chemical injection method long, chained molecules or polymers are used. These polymers are introduced into the oil fields to boost the surfactants effectiveness or increase the waterflooding efficiency. These surfactants help in reducing the surface tension that prevents oil flow through the reservoir.

Various companies are actively investing in R&D to tackle environmental and fiscal concerns pertaining to thermal EOR. Strict governmental regulations have compelled companies to research for improvements in thermal EOR processes in order to reduce the generation of CO2 emissions. Recent advancements have brought about development in various thermal EOR processes such as high-pressure air injection, tertiary gravity drainage, thermally assisted gas-oil gravity drainage, gas-oil gravity drainage, solar thermal oil recovery, enclosed trough solar once-through steam generator, and toe-to-heel air injection.

Application Insights

Onshore and offshore are the two application areas for the EOR market. In 2015, the onshore area dominated the industry and held around 70% of the global share. The area has the presence of larger number of mature and aged wells as compared to offshore, resulting in the requirement of these technologies.

Global EOR market

The technology is mostly employed in the onshore segment. However, many offshore oil reserves are also discovered since past few decades. Extraction for an offshore reserve is an expensive process, so many companies are also applying recovery technique in primary or secondary oil production phase to enhance the extraction.

Major challenges faced by offshore technology include the weight, space limitations of existing offshore facilities. Other EOR applications such as low-salinity water flooding is gaining popularity since it increases the production by 20%. With technology advancement and subsea processing, the offshore enhanced oil recovery market is expected to witness a remarkable growth.

Regional Insights

In terms of region, North America was leading in 2015 and is anticipated to show the same trend over the foreseeable future. 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.

Rapid industrialization and expanding oil & gas industry in Asia Pacific is expected to drive the market. The favorable government initiatives in economies such as China and India, to facilitate infrastructural development in the petroleum industry are expected to drive in the near future. Europe had a stable growth in last few years and is expected to show an identical trend from 2017 to 2025. North America and Europe are relatively mature markets for EOR.

Growing 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 over the next eight years. Recent technological innovations to study the soil characteristics and temperature detection have led to the development of new oilfield services that cater to low- and high-temperature operations. These factors are expected to drive the demand for oilfield services in the region over the forecast period.

Enhanced Oil Recovery Market Share Insights

The global industry is moderately consolidated and highly competitive due to the presence of a large number of big and experienced multinational players. These companies procure raw materials such as polymer, nitrogen, CO2, from regional small-scale suppliers. The technologies used in the EOR is mostly in-ho by the companies. Companies are multinational players and trying to expand by involving in joint ventures with other companies. Companies are focusing on extracting oil from off shore mature reserves. The industry has less number of small-scale players. These companies are investing on R&D activities for new cost-effective technology development for oil recovery.

Some of the key companies present in the industry are ExxonMobil Corporation, BP plc., China Petroleum & Chemical Corporation, Royal Dutch Shell plc, Chevron Phillips Chemical Company LP., Lukoil Oil Company, Praxair Technology, Inc., Chevron Corporation, Petroleo Brasileiro S.A., Cenovus Energy Inc.

Report Scope

Attribute

Details

Base year for estimation

2016

Actual estimates/Historical data

2014 - 2016

Forecast period

2017 - 2025

Market representation

Volume in Million bbl, Revenue in USD Million & CAGR from 2017 to 2025

Regional scope

North America, Europe, Asia Pacific, Latin America, MEA

Report coverage      

Revenue forecast, company share, competitive landscape, growth factors and trends

Country Scope

U.S., Canada, UK, Norway, China, India, Mexico

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Segments covered in the report

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global enhanced oil recovery (EOR) market report on the basis of technology, application, and region:

  • Technology Outlook (Volume, Million Barrels; Revenue, USD Million; 2014 - 2025)

    • Thermal

    • Gas Injection

    • Chemical

    • Other EOR

  • Application Outlook (Volume, Million Barrels; Revenue, USD Million; 2014 - 2025)

    • Onshore

    • Offshore

  • Regional Outlook (Volume, Million Barrels; Revenue, USD Million; 2014 - 2025)

    • North America

      • U.S.

      • Canada

    • Europe

      • Norway

      • UK

    • Asia Pacific

      • China

      • India

    • Middle East & Africa

    • Latin America

      • Mexico

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