Carbon Dioxide (CO2) Enhanced Oil Recovery (EOR) market is projected to grow at a CAGR of 4.7% by 2034: Visiongain
Visiongain has published a new report entitled Carbon Dioxide (CO2) Enhanced Oil Recovery (EOR) Market Report 2024-2034: Forecasts by Mechanism (Miscible CO2 Injection, Immiscible CO2 Injection), by Source (Natural Sources, Industrial Sources, Captured CO2 from Power Plants), by Equipment (Drilling Equipment, Production Well, Injection Well Equipment, Lease Equipment, Other), by Technique (Gas Injection Method, Chemical Injection Method, Miscible Flooding, Water Alternating Gas (WAG) Injection, Thermal Methods Coupled with CO2 Injection, Other) AND Regional and Leading National Market Analysis PLUS Analysis of Leading Companies AND COVID-19 Impact and Recovery Pattern Analysis.
The global carbon dioxide (CO2) enhanced oil recovery (EOR) market was valued at US$3,634.0 million in 2023 and is projected to grow at a CAGR of 4.7% during the forecast period 2024-2034.
Environmental Benefits and Carbon Capture
The environmental benefits associated with carbon capture and storage (CCS) contribute to the growth of the CO2 EOR market. CO2 EOR involves capturing carbon dioxide emissions from industrial sources, such as power plants, and injecting them into oil reservoirs for enhanced oil recovery. This dual-purpose approach not only aids in oil extraction but also mitigates greenhouse gas emissions. The Sleipner project in the North Sea is an example where CO2 captured from natural gas production is utilized for EOR, reducing emissions and enhancing oil recovery simultaneously.
Government Incentives and Regulations
Government incentives and regulatory frameworks play a crucial role in driving the adoption of CO2 EOR. Many governments around the world provide incentives, tax credits, and regulatory support to encourage the implementation of technologies that enhance oil recovery while addressing environmental concerns. The 45Q tax credit in the United States, for instance, incentivizes the capture and use of CO2 for enhanced oil recovery, fostering the growth of projects that integrate environmental and economic objectives.
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How has COVID-19 had a significant negative impact on the Carbon Dioxide (CO2) Enhanced Oil Recovery (EOR) Market?
The carbon dioxide (CO2) enhanced oil recovery (EOR) market, like many other industries, has experienced notable impacts from the COVID-19 pandemic. The global economic downturn, supply chain disruptions, and shifts in energy demand have collectively influenced the dynamics of the CO2 EOR market. During the initial phases of the pandemic, the oil and gas industry faced a severe decline in demand as travel restrictions, lockdowns, and economic uncertainties led to reduced consumption. This, in turn, affected the investment climate for CO2 EOR projects, as companies faced financial constraints and a cautious approach to capital expenditures.
Furthermore, the decline in oil prices, triggered by a combination of reduced demand and geopolitical factors, created additional challenges for the CO2 EOR market. Many projects faced delays or re-evaluations as companies sought to adapt to the evolving market conditions. The uncertainty surrounding the duration and severity of the pandemic exacerbated the hesitancy among investors and stakeholders, impacting project timelines and investment decisions.
On the positive side, the focus on sustainability and the energy transition gained momentum during the pandemic, leading to increased attention on carbon capture and storage (CCS) technologies, of which CO2 EOR is a significant component. Governments and industry players, recognizing the role of CCS in achieving climate goals, have begun to allocate funds and resources to support these initiatives. This shift in perspective could present opportunities for the CO2 EOR market as the global economy recovers and transitions toward more sustainable energy practices.
How will this Report Benefit you?
Visiongain’s 410-page report provides 147 tables and 230 charts/graphs. Our new study is suitable for anyone requiring commercial, in-depth analyses for the global carbon dioxide (CO2) enhanced oil recovery (EOR) market, along with detailed segment analysis in the market. Our new study will help you evaluate the overall global and regional market for Carbon Dioxide (CO2) Enhanced Oil Recovery (EOR). Get financial analysis of the overall market and different segments including mechanism, source, equipment, and technique and capture higher market share. We believe that there are strong opportunities in this fast-growing carbon dioxide (CO2) enhanced oil recovery (EOR) market. See how to use the existing and upcoming opportunities in this market to gain revenue benefits in the near future. Moreover, the report will help you to improve your strategic decision-making, allowing you to frame growth strategies, reinforce the analysis of other market players, and maximise the productivity of the company.
What are the Current Market Drivers?
Increasing Production from Maturing Oilfields Driving the Market Growth
The demand for enhanced oil recovery (EOR) techniques, particularly CO2 enhanced oil recovery (CO2 EOR), has been significantly influenced by the need to extract additional hydrocarbons from mature or depleted oil fields. As oil reservoirs age, their natural pressure declines, leading to reduced oil production rates. To counteract this decline and maximize the recovery of remaining oil reserves, the implementation of advanced EOR methods becomes imperative.
One example is the Permian Basin in the United States. The Permian Basin has been a focal point for CO2 EOR projects due to its extensive history of oil production and the presence of mature fields. Companies operating in this region, such as Occidental Petroleum, have successfully utilized CO2 EOR to revitalize and extend the life of aging reservoirs. By injecting carbon dioxide into the reservoirs, the viscosity of the remaining oil is reduced, making it easier to extract and increasing overall recovery rates. In the Permian Basin, the increasing application of CO2 EOR has not only resulted in a boost in oil production but has also contributed to economic benefits for the local communities. The technique has allowed for the efficient and sustainable extraction of oil from fields that might have otherwise been considered economically unviable.
Growing Shale Activities Driving the Market Growth
One significant driver contributing to the growth of the CO2 Enhanced Oil Recovery (EOR) market is the increasing prominence of shale activities. Shale reservoirs, known for their unconventional nature, have become a focal point for oil and gas exploration and production. This surge in shale activities has had a direct impact on the demand for enhanced oil recovery techniques, particularly those involving CO2 injection.
The rise in shale activities is exemplified by the shale revolution in the United States. The development of advanced drilling techniques, such as hydraulic fracturing (fracking) coupled with horizontal drilling, has unlocked vast reserves of oil and gas from previously uneconomical shale formations. This has led to a surge in production from shale reservoirs, transforming the global energy landscape.
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Where are the Market Opportunities?
CO2 EOR is a Highly Effective Tool for Re-Invigorating Oil Production from Mature Fields
Carbon dioxide Enhanced Oil Recovery (CO2 EOR) stands out as a compelling opportunity for revitalizing oil production from mature fields. As oil reservoirs age, their natural pressure declines, and conventional extraction methods become less efficient. CO2 EOR involves injecting carbon dioxide into these depleted reservoirs, facilitating increased oil recovery. An example of this opportunity can be found in the Permian Basin in the United States. In this region, several mature oil fields have experienced a resurgence in production through the application of CO2 EOR techniques. The injection of carbon dioxide into the reservoirs not only helps displace oil but also interacts with the hydrocarbons, making them more mobile and recoverable.
Investment in R&D for Developing New Resources
Investing in research and development (R&D) to develop new resources is a significant market opportunity in the realm of CO2 EOR. This involves exploring innovative technologies and methodologies to optimize the CO2 EOR process and expand its applicability to different types of reservoirs. One example of this opportunity is the collaboration between oil and gas companies and research institutions to enhance the efficiency of CO2 capture technologies. By improving the capture process, companies can secure a more reliable and cost-effective source of CO2 for injection, thereby making CO2 EOR a more viable and sustainable method for enhanced oil recovery.
The major players operating in the carbon dioxide (CO2) enhanced oil recovery (EOR) market are Air Products and Chemicals, Inc, BP Plc, Cenovus Energy Inc., Chesapeake Energy Corporation, Chevron Corporation, China Petroleum & Chemical Corporation, ConocoPhillips Company, Equinor ASA, Exxon Mobil Corporation, Halliburton Corporation, Occidental Petroleum Corporation, Petróleo Brasileiro S.A., Royal Dutch Shell Plc, Schlumberger Limited, Total Energies SE, . These major players operating in this market have adopted various strategies comprising M&A, investment in R&D, collaborations, partnerships, regional business expansion, and new product launch.
- 29 Nov 2023, Shell has entered into a partnership with CNOOC to develop CO2 EOR project in China, aiming to capture and store 10 million tonnes of CO2.
- 26 Oct 2023, Schlumberger has entered into a partnership with Climeworks on direct air capture technology to capture CO2 for EOR projects.
- 02 Oct 2023, Halliburton has entered into partnership with a major oil and gas producer to deploy a CO2 EOR project in the Permian Basin, utilizing the Summit ESP® CO2 booster pump and iFrac™ software for optimized injection and fracture stimulation.
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To find more Visiongain research reports on the oil & gas sector, click on the following links:
- Thermal Enhanced Oil Recovery (EOR) Market Report 2023-2033
- Carbon Dioxide (CO2) Enhanced Oil Recovery (EOR) Market Report 2022-2032
- Microbial Enhanced Oil Recovery Market Report 2020-2030
- Top 20 Enhanced Oil Recovery (EOR) Companies 2019
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