Chemical Enhanced Oil Recovery (EOR) Market Research, 2031
The global chemical enhanced oil recovery (EOR) market size was valued at $0.9 billion in 2021, and chemical enhanced oil recovery (EOR) industry is projected to reach $1.4 billion by 2031, growing at a CAGR of 4.6% from 2022 to 2031.
Chemically enhanced oil recovery (EOR) has been adjudged as an efficient oil recovery technique to recover the bypassed oil and residual oil trapped in the reservoir. This EOR method relies on the injection of chemicals to boost oil recovery. The recent trend of incorporating nanotechnology and its synergistic effects on conventional chemicals’ stability and efficiency for EOR was explored and analyzed.
The growth of the chemical enhanced oil recovery (EOR) market is driven by the limited availability of petroleum resources, which requires increased investment in oil transportation. Countries are adopting advanced technologies to enhance domestic production, which reduces the outflow of foreign exchange and empowers energy security to meet the demand. These positive factors boost the growth of the chemical enhanced oil recovery market trends.
Chemical injection, gas flooding, microbial injection, and thermal injection are the four types of enhanced oil recovery methods. Chemically enhanced oil recovery is expensive and requires large investments, causing environmental damage, and increasing investments in carbon dioxide-based oil recovery.
Rising Offshore Applications of Chemical Enhanced Oil Recovery
The offshore chemical EOR project involves not only reservoir engineering, logistics, and chemical storage issues, but also oil/water separation produced water treatment, incompatibilities with other chemicals, precipitation on surface facilities, high salinity and hardness water source. The primary offshore injection water source is seawater or produced water.
Due to the presence of various dissolved ions, conventional partially hydrolyzed polyacrylamides (PHPA) lose viscosifying power, which results in substandard reservoir performance when polymer flooding is utilized. Full-field applications may consider independent units for chemical storage and preparation. Technical and economic analyses are required to compare the alternatives. The ASP/SP method has a considerably higher chemical consumption than polymer flooding and regular alkalis cannot be used in hard water, requiring hardness-insensitive alkalis or water softening.
Chemical EOR methods are important strategies to increase the recovery factor of offshore fields, especially where there is no gas available for EOR and thermal methods are not suitable. Important steps are being taken on logistics, chemical, and process developments to overcome the challenges of making chemical EOR deep water offshore technically and economically viable.
The global chemical enhanced oil recovery (EOR) market forecast is segmented into origin, type, technique, and application. By origin, the market is divided into petro-based, bio-based, and water-based. By type, it is classified into water-soluble polymers, surfactants, polymer gels, biopolymers, and alkaline chemicals. By technique, it is categorized into polymer flooding, surfactant polymer flooding, alkali surfactant polymer flooding, alkali co-solvent polymer flooding, and low-tension gas flooding. By application, it is bifurcated into offshore, and onshore. By region, the market is segmented into North America, Europe, Asia-Pacific, and LAMEA.
On the basis of origin, the water-based segment emerged as the global leader by acquiring more than half of the chemical enhanced oil recovery market share in 2021 and is anticipated to continue this trend during the forecast period. The presence of most of the mature oil fields onshore has a significant impact on the water-based chemicals enhanced oil recovery. The presence of abundant water resources on the mainland is also one of the factors which have a significant positive impact on the chemical enhanced oil recovery market opportunities. Hence, oil-producing companies across the globe have invested in the development of more efficient water-soluble chemicals which can be utilized in enhanced oil recovery.
On the basis of type, the alkaline chemicals segment emerged as the global leader by acquiring approximately half of the chemical enhanced oil recovery market share in 2021 and is anticipated to continue this trend during the forecast period. The increase in exploration of oil and gas resources in the offshore region has a significant impact on the market growth. Alkaline chemicals are some of the most abundant materials on the earth after the biomaterials to produce chemicals which are required for oil recovery. The presence of demand for chemicals that are sustainable in high temperatures and alkaline in nature is another factor projected to provide ample opportunities for the development of the market.
On the basis of technique, the surfactant polymer flooding segment emerged as the global leader by acquiring more than 1/3rd of the chemical enhanced oil recovery market share in 2021 and is anticipated to continue this trend during the forecast period. Surfactant polymer flooding is one of the most successfully used chemical enhanced oil recovery (EOR) processes to extract residual oil from post-waterflooding oil fields. The presence of demand for surfactant polymer in mature oilfields where the environment is not severe is projected boost the growth of the market. The above-mentioned factors are projected to provide ample opportunities for the development of the market.
On the basis of application, the onshore segment emerged as the largest market share in 2021 which accounted for approximately 3/4th of global market share and is anticipated to continue this trend during the forecast period. The demand for oil and gas resources in various applications across the globe has a significant impact on the development of the market. The increase in mature oil fields on land has led to the utilization of enhanced oil recovery techniques to meet the demand for oil in modern society. Most of the fossil fuel resources utilized by human civilization come from onshore resources, where most of them have entered the recovery stage, hence there is a high demand for chemically enhanced oil recovery.
On the basis of region, North America is the major consumer of chemical enhanced oil recovery market among other regions. It accounted for approximately 2/5th of the global market share in 2021. North America is comprised of three countries, the U.S., Canada, and Mexico. North America's oil production was expected to be 23.9 to 23.5 million barrels per day in 2021. The U.S. is the leading oil producer, with a 2021 output of 16.6 million barrels. Canada is the world's fourth largest producer of oil, with the oil and gas industry present in 12 of the 13 provinces and territories. However, Mexico's oil production is declining due to its reliance on easily recoverable oil reserves and a lack of investment in exploration and infrastructure. This has resulted in the use of improved oil recovery methods, which has had a significant impact on the growth of the chemically enhanced oil recovery market.
The increase in demand for oil & gas to produce power and the production of raw materials in the chemical industries led to the development of chemical enhanced oil recovery methods. The presence of mature wells which have untapped oil reserves is projected to further lead to a surge in the development of the chemical enhanced oil recovery (EOR) market. In addition, European countries are highly dependent on Russian oil and gas imports. Consequently, the oil crisis that resulted from the conflict between Ukraine and Russia prompted the EU government to invest in enhanced oil recovery technology, which is projected to have a positive effect on the chemical enhanced oil recovery (EOR) market. In addition, the policies of the government to phase out the fossil fuel-based power generation facilities and vehicles in coming years will lead to a decline in the demand for oil which lead to a decrease in the demand for the chemical enhanced oil recovery (EOR) market.
In recent years, Brazil has been a global hotspot for upstream development, with three of the country's most mature pre-salt fields entering the decline phase. The GCC countries have enormous amounts of oil and gas resources, with most oil wells having untapped resources. The LAMEA region witnesses significant demand for chemical enhanced oil recovery because of its abundant natural energy resources and the need for alternative methods to extend the life of oilfields. The presence of an application and the demand for energy resources from this region to the rest of the world is expected to create numerous opportunities for the chemical enhanced oil recovery (EOR) market growth.
Chemical Enhanced Oil Recovery Market- Asia-Pacific Outlook
The Asia-Pacific region dominates the chemical enhanced oil recovery (EOR) market and is analyzed across China, Japan, India, South Korea, Australia, and the rest of Asia-Pacific. In 2021, oil production in the region accounted to 7.34 million barrels per day, with China being the largest producer. India produced the second-highest amount of oil with a production of 746 thousand barrels per day. In Southeast Asia, the abandonment and decommissioning of onshore wells and offshore facilities are quickly developing into a serious problem, with over 400 offshore structures and the associated wells anticipated to be decommissioned over the course of the next 20 years in Malaysia and Borneo.
Southeast Asia is developing similar needs, particularly in Indonesia and Thailand. The presence of demand for oil resources and an increase in the mature oil fields in this region is projected to drive the growth of the market. In addition, the presence of few natural resources in the region has led to the utilization of enhanced oil recovery methods to extract untapped oil resources.
IMPACT OF COVID-19 ON THE GLOBAL CHEMICAL ENHANCED OIL RECOVERY MARKET
COVID-19 is an infectious disease that originated in the Hubei province of Wuhan city in China in late December 2019. It had spread to 213 countries around the globe, with the World Health Organization declaring it a public health emergency on March 11, 2020. The oil & gas industry has been negatively affected by the pandemic as most countries have imposed lockdown restrictions, leading to a decline in the sales of oil and gas. The pandemic has also severely affected the shale and heavy oil industry, which accounts for large usage of enhanced oil recovery techniques.
Despite the setbacks, the chemical enhanced oil recovery (EOR) market has shown a surge in growth due to the decline in oil resources and increased awareness of the environment. This has had a significant positive impact on the development of the market.
Competitive Landscape
Key players in the chemical enhanced oil recovery industry include Exxon Mobil Corporation, BP p.l.c., China Petroleum & Chemical Corporation, Roya Dutch Shell plc, BASF SE, Praxair Technology Inc., Chevron Corporation, Baker Hughes Inc., PJSC Lukoil Oil Company, and Petroleo Brasileiro S.A. These players have adopted various strategies to gain a higher share or retain leading positions in the market.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the chemical enhanced oil recovery (EOR) market analysis from 2021 to 2031 to identify the prevailing chemical enhanced oil recovery (EOR) market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the chemical enhanced oil recovery (EOR) market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global chemical enhanced oil recovery (EOR) market trends, key players, market segments, application areas, and market growth strategies.
Chemical Enhanced Oil Recovery (EOR) Market Report Highlights
| Aspects | Details |
 Market Size By 2031 | USD 1.4 billion |
 Growth Rate | CAGR of 4.6% |
 Forecast period | 2021 - 2031 |
 Report Pages | 343 |
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 By Type |
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 By Technique |
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 By Application |
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 By Region |
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 Key Market Players | Royal Dutch Shell plc, Praxair Technology, Inc., Petroleo Brasileiro S.A., Chevron Corporation, BP p.l.c., PJSC Lukoil Oil Company, BASF SE, Baker Hughes Inc., Exxon Mobil Corporation, China Petroleum & Chemical Corporation |
 Other Key Players | BASF SE; Beijing Hengju Chemical Group Corp; ChampionX; |
Analyst Review
As per the perspectives of the CXOs, the global chemical enhanced oil recovery (EOR) market is expected to witness increased demand during the forecast period. The surge in mature oil fields across the globe and the increase in the oil demand led to the development of techniques that help in exploiting untapped resources in oilfields.
Chemical enhanced oil recovery (CEOR) has been adjudged as?an efficient oil recovery technique to recover bypassed oil and residual oil trapped in the reservoir. This EOR method relies on the injection of chemicals to boost oil recovery.
Chemically enhanced oil recovery (CEOR) is a technique used in oilfield operations to improve well performance and, eventually, reserve recovery. It is used in a variety of ways, including polymer flooding, surfactant polymer flooding, and alkaline surfactant polymer flooding. Increased oil production, oil extraction from technologically challenging hydrocarbon geologies, and the need for efficient extraction drive the growth of the chemical enhanced oil recovery (EOR) market.
The market is being driven by the rise in crude oil production, an increase in mature oil wells, need for national energy security, and oil companies' gradual shift toward oil recovery from reservoirs. Onshore activities are increasing the demand for CEOR to boost crude oil production from mature or declining reserves. The facts indicate that the chemical enhanced oil recovery (EOR) market is projected to expand considerably throughout the projected period. The chemical enhanced oil recovery (EOR) market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Among the analyzed regions, the North American region dominated the CEOR market in 2021. Globally Canada, Mexico, Saudi Arabia, China, and India are the major countries with a huge demand for CEOR. Asia-Pacific is expected to exhibit the highest CAGR during the forecast period.
Increasing number of matured wells and rising demand for energy security are the key factors boosting the Chemical enhanced oil recovery (EOR) market growth.
The market value of Chemical enhanced oil recovery (EOR) in 2031 is expected to be $1.4 billion
Exxon Mobil Corporation, BP p.l.c., China Petroleum & Chemical Corporation, Roya Dutch Shell plc, BASF SE, Praxair Technology Inc., Chevron Corporation, Baker Hughes Inc., PJSC Lukoil Oil Company, and Petroleo Brasileiro S.A.
Onshore application is projected to increase the demand for Chemical enhanced oil recovery (EOR) market
The global chemical-enhanced oil recovery market analysis is segmented into origin, type, technique, and application. By origin, the market is divided into petro-based, bio-based, and water-based. By type, it is classified into water-soluble polymers, surfactants, polymer gels, biopolymers, and alkaline chemicals. By technique, it is categorized into polymer flooding, surfactant polymer flooding, alkali surfactant polymer flooding, alkali co-solvent polymer flooding, and low-tension gas flooding. By application, it is bifurcated into offshore, and onshore. By region, the market is segmented into North America, Europe, Asia-Pacific, and LAMEA.
Gradual shift towards oil recovery from reservoirs is the Main Driver of Chemical enhanced oil recovery (EOR) market.
Despite the setbacks, the chemical-enhanced oil recovery market has shown a surge in growth due to the decline in oil resources and increased awareness of the environment. This has had a significant positive impact on the development of the market.
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