Chemical Enhanced Oil Recovery (EOR) market is projected to grow at a CAGR of 5.6% by 2033: Visiongain
Visiongain has published a new report entitled Chemical Enhanced Oil Recovery (EOR) Market Report 2023-2033: Forecasts by Type (Offshore, Onshore), by Origin (Petro-based, Bio-based, Water-based), by Chemical Type (Water-soluble Polymers, Surfactants, Polymer Gels, Biopolymers, Alkaline Chemicals), by Technique (Polymer Flooding (PF), Surfactant-Polymer (SP) Flooding, Alkali-Surfactant-Polymer (ASP) Flooding, Micellar Flooding, Low Tension Gas Flooding (LTG), Other) AND Regional and Leading National Market Analysis PLUS Analysis of Leading Companies AND COVID-19 Impact and Recovery Pattern Analysis.
The global chemical enhanced oil recovery (EOR) market was valued at US$890.8 million in 2022 and is projected to grow at a CAGR of 5.6% during the forecast period 2023-2033.
Rising Investments in Research and Development
Continuous investments in research and development initiatives are expanding the chemical EOR market. Research institutions and oil majors collaborate to develop novel chemicals and methods. The U.S., with its extensive oil industry, invests significantly in research, leading to the discovery of new chemical agents enhancing EOR efficiency. These innovations create new avenues, attracting investments from companies looking to adopt state-of-the-art chemical EOR techniques.
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How has COVID-19 had a significant negative impact on the Chemical Enhanced Oil Recovery (EOR) Market?
The Chemical Enhanced Oil Recovery (EOR) market, like many industries, experienced the impact of the COVID-19 pandemic. The pandemic brought about a series of challenges and disruptions that affected both the supply and demand sides of the market. One of the immediate impacts of the pandemic was disruptions in the global supply chain. The chemical industry, which plays a crucial role in EOR, faced interruptions in the production and transportation of key chemicals used in the process. Lockdowns, restrictions, and reduced workforce availability in various regions hampered the supply chain, causing delays and shortages.
Oil production companies, facing decreased demand due to lockdowns and economic slowdowns, reduced their capital expenditures. This led to delays or cancellations of EOR projects or expansions, impacting the demand for Chemical EOR solutions. Companies were also challenged to implement social distancing and safety measures at work sites, affecting operations. The oil market experienced extreme price volatility during the pandemic. The significant drop in oil prices reduced the financial capabilities of many oil producers. Some EOR projects became less economically viable at lower oil prices, leading to a reconsideration of investment decisions.
In response to the challenging market conditions, some oil companies shifted their focus from expansion to cost-cutting measures. This affected the demand for EOR solutions, particularly those requiring significant upfront investments. Despite these challenges, Chemical EOR demonstrated resilience. As the industry adapted to the new normal, there was a growing recognition of the importance of EOR in maximizing oil recovery, especially from mature fields. Oil producers sought cost-effective EOR solutions to enhance their production in a lower-price environment.
How will this Report Benefit you?
Visiongain’s 426-page report provides 109 tables and 219 charts/graphs. Our new study is suitable for anyone requiring commercial, in-depth analyses for the global chemical 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 Chemical Enhanced Oil Recovery (EOR). Get financial analysis of the overall market and different segments including type, origin, chemical type, and technique and capture higher market share. We believe that there are strong opportunities in this fast-growing chemical 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?
Rising Deep Drilling Operations Driving the Market Growth
The global energy landscape is undergoing a transformative shift with the increasing prominence of deep drilling operations. In recent years, the exploration and extraction of resources from substantial depths below the Earth’s surface have gained significant traction. This surge in deep drilling activities is attributed to the growing demand for energy resources, particularly oil and gas, and the depletion of easily accessible reserves. As conventional reserves become scarcer, industries are compelled to tap into deeper reservoirs, driving the need for advanced drilling technologies and equipment. Companies are investing heavily in research and development to enhance drilling capabilities, including innovative drilling techniques, specialized tools, and high-performance drilling rigs. This trend is not only propelling the energy sector forward but also fostering growth across associated industries like drilling equipment manufacturing, geological services, and offshore infrastructure development.
Increasing Investments in Unconventional Reservoirs
The exploitation of unconventional oil sources, including heavy oil and oil sands, necessitates advanced recovery techniques. Chemical EOR methods, particularly thermal chemical techniques like steam-assisted gravity drainage (SAGD), are employed in Canada’s oil sands regions. These methods enhance oil flow in these heavy oil reservoirs, making extraction economically viable. The rising interest in unconventional reservoirs globally augments the demand for chemical EOR technologies, shaping the future landscape of the industry.
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Where are the Market Opportunities?
The Identification of Fresh Oilfields Presents Opportunities for the Growth of the Chemical Enhanced Oil Recovery (EOR) Market
The discovery of new oilfields presents significant opportunities for the Chemical Enhanced Oil Recovery (EOR) market. When fresh reserves of oil are identified, it not only augments the global hydrocarbon supply but also opens doors for innovative EOR methods, including chemical EOR, to maximize the recovery of these newfound resources.
One of the key advantages of chemical EOR is its adaptability to various reservoir conditions and oil compositions. When a new oilfield is discovered, its unique characteristics, such as the viscosity of the crude oil and reservoir permeability, are carefully assessed. Chemical EOR can be customized to address the specific challenges presented by these characteristics. By injecting tailored chemical formulations into the reservoir, operators can alter fluid properties, reduce viscosity, and enhance oil mobility, ultimately increasing recovery rates.
Nanotechnology Utilized in New Enhanced Oil Recovery Method
The utilization of nanotechnology in enhanced oil recovery methods represents a significant opportunity for the oil industry. As traditional reservoirs reach maturity, the need for more effective techniques to extract remaining heavy oil reserves becomes crucial. Conventional methods often fall short, with less than 15% of natural reserves recovered due to challenges like unfavourable oil-water ratios, reservoir wettability, and reservoir heterogeneity.
Tertiary recovery methods, especially Alkaline-Surfactant-Polymer (ASP) procedures, have shown promise in chemically enhanced heavy oil recovery. The ASP approach combines polymer efficiency with surfactant displacement effectiveness, offering up to 20% higher recovery compared to water injection techniques.
The major players operating in the chemical enhanced oil recovery (EOR) market are Air Liquide, Baker Hughes Company, BP Plc, Chevron Phillips Chemical Company, Croda International, Haliburton Corporation, Linde Plc, Royal Dutch Shell Plc, Schlumberger Limited, Secure Energy Services, Suncor Energy Inc., TechnipFMC plc, Titan Oil Recovery, Ultimate EOR Services, XYTEL Corporation. 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.
- 17 May 2023, Shell has entered into a partnership with the University of Calgary to develop new EOR technologies. The partnership is focused on developing technologies that can be used to recover oil from unconventional resources, such as shale oil and heavy oil.
- 14 Feb 2023, Schlumberger acquired MiQro Technologies, a provider of polymer-based EOR solutions. The acquisition will strengthen Schlumberger’s portfolio of EOR technologies and help the company to meet the growing demand for EOR solutions in the oil and gas industry.
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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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