Enhanced Oil Recovery Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2018 – 2023

“rnEnhanced Oil Recovery Market”
Market applications for enhanced oil recovery include onshore and offshore. The increasing global energy demand, high sustained oil prices is expected to drive the demand for enhanced oil recovery techniques. Ageing oil fields and a dearth of conventional oil fields would also boost the demand for enhanced oil recovery market.

Market Definition:

Enhanced oil recovery methods refer to the method of recovering more oil from existing oil wells. The global oil industry is witnessing one of the major slowdowns in recent times as the oil prices dropped to historic low in 2015. One of the main reasons for the drop in prices was the reduced demand for oil in the U.S. and China due to shale oil boom. However, the ripple effect caused by the drop in oil prices severely affected the upstream industry as the majority of the operators had to scale down their production. This has led them to stop new production activities and depend on existing well for oil production for their operations. Besides, most of the oil wells around the world are already nearing their operational lifetime and oil production from these wells are constantly declining. To enhance the oil production from existing wells, oil field upstream operators are investing in enhanced oil recovery methods, which are expected to increase the oil production from existing wells.

Usually, oil is recovered from oil wells through primary recovery method by using naturally occurring forces. However, even after implementation of primary recovery method, there is still a considerable amount of oil will be left over on the well.  Enhanced oil recovery research has been extensively conducted by upstream operators across regions to increase the operational life of their wells. The enhanced oil recovery operations are carried out on both offshore and onshore wells.

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Market Scenario:

On the basis of technology, the enhanced oil recovery market is segmented as thermal, chemical, microbial, and others. The thermal and chemical methods are more established procedures with several practical projects being already carried out. The chemical methods traditionally use polymer, alkaline, and surfactant methods to extract more oil from existing wells.

The global enhanced oil recovery market is driven by the fact that many government policies and initiatives support the extraction process. For instance, the power generation industry deals with the issue of CO2 emission from the operations of thermal power plants. One of the methods of oil recovery by gas technology type is by the use of CO2. This is the main reason that government initiatives and support policies enable the use of enhanced oil recovery methods, as CO2 can be used in oil recovery methods. Moreover, one of the other major drivers for the market is the increasing number of mature oil fields around the world. Many offshore oil production sites in the Gulf of Mexico and North Sea are rapidly reaching their end of operational lifetime and enhanced oil recovery methods are implemented to extend the oil fields operation. Besides, the global is expected to grow in recent years with increasing consumption from countries such as China, India, and other developing countries.

The enhanced oil recovery market is expected to face regulatory concerns, which may hinder the growth of the market.

Key Players:

The key players in the global enhanced oil recovery market are Praxair Technology, Inc., PJSC Lukoil Oil Company , FMC Technologies, Inc., Chevron Phillips Chemical Corporation, Schlumberger Ltd., Royal Dutch Shell Plc, Halliburton Corporation, Basf SE, Baker Hughes, a GE company, Statoil ASA, BP Plc., Exxon Mobil, and Titan Oil Recovery.

Global Enhanced Oil Recovery Market is projected to witness ~ 15.7% CAGR during the forecast period.

Market Segmentation:

The North America and Europe regions are expected to be the major markets for the global enhanced oil recovery market. As the number of mature oil fields is on the rise in these regions, it is expected that many upstream oil service providers would increasingly look into the enhanced oil recovery methods for increased production. The Asia Pacific region is expected to with countries, such as Malaysia, Indonesia, and Australia, looking forward to implementing enhanced oil recovery in their oil fields. Implementation of enhanced oil recovery methods further decreases a country’s dependence on oil imports, which further drives the market for enhanced oil recovery.

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