The EOR is production recovery techniques which seek to produce oil which would not be recovered using the primary and secondary recovery methods where the oil has stopped flowing or where the water content of the oil reservoir has increased. EOR is widely applied today, as it can increase oil production without exploration risks. Today over 80% of global EOR production benefits from some sort of government incentive or is prioritized by national oil companies as part of their efforts to maximize the return from national resources. One of the main benefits, aside from increased oil recovery, is the creation of a market for carbon dioxide. EOR provides a commercial use for carbon dioxide, creating an incentive for industries to develop technologies to capture the greenhouse gas. EOR is therefore seen as a catalyst for a carbon market. The growing number of matured fields along with the rising need for crude to encounter the petroleum product demand will enrich the Enhanced Oil Recovery Market size. However, some of the restraints in the market include volatility of crude oil prices, high up-front capital requirements and long pay-back periods which are some factors impeding the growth of this market all over the world.
Based on technology, the market is segmented into Thermal EOR, Gas EOR, Chemical EOR, and others. The Thermal EOR segment grabbed XX% market share of the Global Enhanced Oil Recovery Market and gathered revenue of USD XX billion in 2020. The segment is expected to grow at a CAGR of XX% during the forecast period to reach a market valuation of USD XX billion by 2027 owing to its ability to lower the viscosity, or thin, the heavy viscous oil, and improve its ability to flow through the reservoir. However, Gas EOR driven by CO2 injection technology will grow at the fastest rate due to increasing focus on unconventional gas production across the globe.
Based on Application, the market is classified into Onshore, and Offshore. The Onshore segment generated revenue of USD XX billion in 2020. The segment is expected to grow at a CAGR of XX% during the forecast period to reach a market valuation of USD XX billion by 2027 owing to the presence of several onshore exploration and production projects across the world.
For a better understanding of the market adoption of Enhanced Oil Recovery, the market is analyzed based on its worldwide presence in the countries such as North America (United States, Canada, Rest of North America), Europe (Germany, France, Italy, Spain, United Kingdom, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Rest of APAC), MEA, and Rest of World. North America constitutes the largest market for the industry and generated revenue of USD XX billion in 2020 on account of presence of several unconventional oil and gas resources and matured fields in the region. However, Asia Pacific is poised to grow at the fastest rate due to rising oil and gas demand from the major economies including China and India along with the increased deployment of EOR in aged wells.
Some of the major players operating in the market include Halliburton, Schlumberger Limited, Royal Dutch Shell Plc, BP Plc, Air Liquide S.A. etc. Several M&A’s along with partnerships have been undertaken by these players to boost their presence in different regions.