Market Overview:

The Global Chemical Enhanced Oil Recovery Market Size Was Valued At USD 40.35 Billion In 2022 And Is Expected To Expand To Reach USD 71.71 Billion In 2030 At A Compound Annual Growth Rate (CAGR) Of 7.45% From 2022 To 2030.

EOR, which stands for "enhanced oil recovery," is the process of getting crude oil out of an oil field using chemical, thermal, or physical methods when no other method will work. The EOR method is called "tertiary recovery," because it is only used when neither the primary nor the secondary methods of recovery work. Enhanced oil recovery can be done in a number of ways, including gas injection, microbiological injection, and thermal injection.

During the next few years, the use of tertiary recovery in the production of liquid hydrocarbons through a variety of processes is expected to be a major factor in the growth of the market. Because more and more offshore wells are being built in deep and ultra-deep seas like the Gulf of Mexico, North Sea, and South China Sea, it is expected that the use of enhanced oil recovery technologies in offshore basins will drive the market's growth. But the production rates of most of the traditional onshore basins in countries like Saudi Arabia, China, and Russia have been going down. Russia, China, and Saudi Arabia are some of these countries. Because of this, it is expected that in the coming years, more EOR techniques will be needed to meet the high demand for getting the rest of the recoverable hydrocarbons out of the ground.

Chemically enhanced oil recovery (EOR) has been found to be a good way to get the oil that has been bypassed and the oil that is still in the reservoir. For this EOR method, chemicals are injected to help get more oil out of the ground. For EOR, the recent trend of using nanotechnology and figuring out how it affects the stability and effectiveness of chemicals that have been used before was looked at and analyzed.

Market Dynamics:

Market Trends:

• Rising Demand for Energy Security to Boost the Market

Hydrocarbons are important for the economic growth of every country on Earth. But because there are only so many oil reserves, the price of energy goes up, and countries that don't have enough oil have to spend a lot more money importing oil. So, many countries around the world are using new technologies to increase oil production at home to meet demand. This is what is driving the market trends in the enhanced oil recovery market. This will not only stop the loss of foreign currency from oil imports, but it will also give the country more power by making sure it has enough energy.

• Gradual Shift towards Optimizing Oil Recovery from Reservoirs Boost the Market

EOR makes it possible to get a lot of oil that is stuck in place and cuts down on the cost of drilling new wells. Several companies in the US use EOR to meet national production goals. Governments all over the world are focusing on the long-term recovery of oil to lessen the damage that new drilling does to the environment. Also, a growing number of mature wells is likely to increase the need for more advanced technologies to get oil out of the ground, which will raise the market value by a large amount.

Driving Factors:

• Unbounded Demand for Oil to Provide Impetus to Market

Demand for petroleum products has gone up because oil is being used more and more in industries like transportation, shipping, power, manufacturing, and others. To keep up with the growing demand for oil, operators are turning to more advanced ways of doing things. EOR is the best way to get all the oil out of a reservoir, which boosts the production as a whole. It also saves money by not having to drill a new well, which is expected to drive the market.

• Rising Capital Expenditure by National Oil Companies

National oil companies are bringing back plans to increase the amount of oil made in the United States by investing in new technologies. For example, in 2019, the Indian companies ONGC and IOC made a deal to pump CO2 into a well to make it produce more oil. Also, Petroleum Development Oman (PDO) wants to increase production over the next few years. So, growing investments by national oil companies and help from the government to increase oil production in the United States will help the EOR market grow.

• Enhancement of Oil Recovery Technologies

In the oil and gas industry, the rapid decline of fossil fuels over the last few years has led to more use of enhanced oil recovery technologies. Also, the growing need for oil has made the world need for enhanced oil recovery grow. Since secondary and primary oil recovery techniques can leave up to 70% of the oil in the reservoir, oil extraction companies have started to rely more on tertiary oil recovery or enhanced oil recovery techniques.

• Government Initiatives will Drive the Growth

Several governments around the world use advanced natural technologies to get the most money out of oil and gas fields they already have. For example, countries like India and China offer financial incentives to get multinational corporations to invest in the enhanced oil recovery market. Also, around the world, many important players are doing research and development to improve oil recovery. For example, British Petroleum has come up with a new way to get oil out of the ground by using tiny particles that are heated up and then expand deep into the reservoir.

Restraints/Challenges:

• High Capital Expenditures and a Slowing Economy Put Growth on the Back Foot

Because the cost of technology is so high, almost all efforts to improve oil recovery around the world have relied on financial incentives from governments or on creative ways to invest. Compared to more traditional ways of doing things, this plan is inherently more complicated. OR needs experts with a high level of knowledge, a methodical way to implement and integrate R&D, a commitment, and the ability to take risks. All of these things make it hard for the industry to grow. The rapid spread of the nCovid-19 pandemic has made the severe economic crisis the world is going through right now even worse. The whole world's economy is almost at a standstill, which hurts the demand for oil and other products made from petroleum. Most oil and gas companies are planning to cut their capital and operating costs by a lot because they are afraid of the ongoing economic crisis. This is putting the market on the defensive.

• Growing Demand for Battery Electric Vehicles

The move toward electric vehicles in both developed and developing countries will slow the growth of existing internal combustion engine (IC) vehicles and affect the Chemical Enhanced Oil Recovery Market over the next few years. IEA says that Norway, the Netherlands, and Japan are the leaders in the market for electronic vehicles. In 2018, the IEA said that 46 percent of the world's sales of new electric cars were made in Norway. In order to meet zero-emissions goals set by the "Paris Climate Accord," the French government has said that diesel and gasoline-powered cars will be completely banned in 2017. By 2040, all cars in France will be electric.

• Impact of COVID 19

The fast spread of coronavirus has had a big effect on the world's markets, as most of the world's major economies are now shut down. Because of this major lockdown, the consumer market has all of a sudden lost all interest in buying anything. International transportation has been stopped, which is one of the biggest problems the market is facing. The market for chemically enhanced oil recovery has slowed down because of the global economic crisis, which has affected all industries, including shipping. This is because the global economic crisis has led to a decrease in the demand for goods and exports.

Opportunities:

• Research and Development Activities will Present Many Opportunities

During the above-mentioned time frame, the enhanced oil recovery (EOR) market is expected to grow because there will be more focus on producing heavy oil, new oilfields will be found offshore, and more money will be spent on research and development.

• Concentrate on Producing Heavy Oil

Since conventional light oil and gas reservoirs are running out, it is now possible to explore heavy oil deposits on a large scale for business purposes. Significant heavy oil deposits are available in Canada, Venezuela, Mexico, China, and Colombia. Most heavy oil is made in Canada and Venezuela, both of which are important players in this worldwide industry. So, EOR technologies are used to increase the amount of heavy oil that can be made. By using thermal EOR, the amount of heavy oil that can be made can be raised. So, operations involving products that aim to increase oil production create the possibility of a market for better oil recovery.

• The National Oil Companies Increasing Capital Spending is Likely to Increase Opportunities

By putting money into more cutting-edge technology, national oil companies are bringing back strategies that could lead to more oil being made in the United States. For example, in 2019, the Indian companies ONGC and IOC signed a contract to pump carbon dioxide (CO2) into a well to make it produce more oil. PDO, which stands for Petroleum Development Oman, is also getting ready to increase the amount of oil it makes in the years to come. So, more investments from national oil companies and help from the government to increase domestic oil production would make the OR market bigger overall.

Strategic Development:

• In September 2019 - TechnipFMC opened an international facility on the surface as part of ICAD II. The goal of the investment was to help ADNOC improve how it does business in Abu Dhabi. With its state-of-the-art equipment in drilling, completion, production, and pressure control, the new TechnipFMC facility offered a wide range of services.
• In November 2018 - BP said that it would use LoSal technology for the first time at its Clair Ridge project in the West of Shetland area, which is off the coast of the UK. BP owns a 28.6% share of the Clair field.
• In September 2018 - BASF and Letter One just signed a contract to combine their oil and gas businesses into a joint venture called Wintershall DEA.
• In August 2018 - Cairn Oil & Gas, Vedanta Limited gave Baker Hughes Company a contract to build 300 new wells and start a chemical EOR program in the Rajasthan region. The goal was to increase output from the area.
• In May 2019 - Canadian Natural Resources Limited finished buying almost all of the assets of Calgary, Alberta-based Devon Canada Corporation.
• In September 2019 - TechnipFMC opened a surface international facility in ICAD II. The investment was supposed to help ADNOC improve its operations in Abu Dhabi. With its high-tech equipment for drilling, production, completion, and pressure control, this facility was able to offer a wide range of TechnipFMC's services.

Key Vendors:

Top market players are

• BASF

BASF SE (BASF) is a company that makes chemicals. It makes chemicals, plastics, crop protection products, and performance products and sells, markets, and advertises them. It makes solvents, glues, surfactants, fuel additives, chemicals for electronics, pigments, paints, food additives, fungicides, and herbicides.

• DuPont

DuPont de Nemours Inc., which used to be called DowDuPont Inc., is a company that makes and sells materials and solutions based on technology. It provides materials and printing systems to the advanced printing industry, as well as materials and solutions for the front-end and back-end of the manufacturing process for semiconductors and integrated circuits.

• Baker Hughes

Baker Hughes Co. (also called "Baker Hughes") is an energy technology company that offers solutions for energy and industry. The company makes drilling equipment, subsea production systems, compressors, pipe systems, electricity generators, energy recovery and storage systems, regulators, control systems, pumps, valves, and process control technologies.

• Halliburton

Halliburton Co., or "Halliburton," is a company that works in the oil field. The company works with the upstream oil and gas industry throughout the entire lifecycle of the reservoir, from finding hydrocarbons and managing geological data to drilling and formation evaluation, well construction and completion, and optimizing production.

• Schlumberger

Schlumberger Ltd. (Schlumberger) gives the oil and gas industry technology for figuring out what's in a reservoir, producing it, drilling in it, and processing it. The company also sells products and services to the industry, from exploration to production and integrated pipeline solutions for hydrocarbon recovery.

Segmentation Analysis:

The market is segmented on the basis of type, end-user, application, technique and region.

By Type:

In 2021, more than 35.0% of all sales came from the thermal category, which had the largest market share. The method involves heating oil wells to make the oil less thick and more mobile. Most of the time, it is used in shallow wells with things like heavy oil and tar sand that have a higher viscosity. The United States, Canada, Oman, and Russia are just some of the countries that use this technology right now.

CO2 is pumped into the rock pores as part of the CO2 injection process, which is used to get crude oil out of the ground. Since CO2 can mix with crude oil and is much cheaper than other fluids that can do the same thing, it is the fluid of choice for EOR. Its low cost and high level of miscibility make it the fluid of choice for EOR. Also, this method has some pretty big benefits for the environment, which will drive the market demand for CO2 injection technology during the time frame of the projection.

Also, the oil industry is using CCS technology more because the government has strict rules about reducing emissions from oil industry activities. As part of the EOR process, this technology makes it possible to take the carbon that is released by refineries and inject it into oilfields that are running out of oil.

Polymers and surfactants are both injected into the oil well as part of the Chemical EOR method. This lowers the pressure at the interface and increases the viscosity of the flooded oil, which increases the amount of oil that can be taken out of the well. Chemically based EOR technology is now being used in China, Russia, Colombia, and Canada, among other places.

• Thermal
• CO2 Injection
• Chemical

By End-User:

Because there were so many exploration and production projects on land all over the world in 2021, more than 90% of the total revenue came from the land-based sector. This gave it the most of the market. In the future, the onshore application segment will grow because conventional extraction costs for onshore oilfields are lower than for offshore oilfields. This growth will happen because conventional onshore extraction costs are going down. EOR techniques are being used in traditional onshore basins. This has caused China, Russia, and Saudi Arabia to produce less oil. During the time period in question, these factors are likely to have a positive effect on the growth of the segment.

During the projection period, the offshore segment is most likely to be driven by the continued development of offshore wells that are already in place. Also, oil companies like BP, Statoil, and Repsol are looking into how well EOR works technically and financially in offshore oil fields.

On the other hand, the offshore oil industry would grow slowly because expensive capital investments and operating costs, as well as the effects of the pandemic, would slow down growth. The growth of the offshore oil business will be slowed down by these things, which will make things harder. But the growth of the offshore segment is expected to be faster in the forecast year because technology is always getting better in that sector. Because the offshore segment is located offshore, this is the case.

• Onshore
• Offshore

By Technique:

For Chemical Enhanced Oil Recovery, polymer flooding is the method that is used most often around the world. Polymer flooding is used when there are conditions in the reservoir that make a regular waterflood less effective. These conditions include fractures or high-permeability areas that channel or redirect the flow of injected water, or heavy oil that is hard to move. By adding a polymer that dissolves in water to the waterflood, the water can move through more of the rock in the reservoir. This increases the amount of oil that can be recovered. In polymer flooding, the floodwater is mixed with a polymer that dissolves in water. Water gets thicker because of this.

• Polymer Flooding
• Surfactant Polymer flooding
• Surfactant flooding
• Alkaline Flooding
• Alkaline-Surfactant Polymer Flooding
• Others

By Application Outlook:

Chemical Enhanced Oil Recovery Market is expected to grow a lot because of Bypass Oil. With bypass oil filtration, a second filter is used to remove almost all contaminants from the motor oil. Bypass filters have a large capacity and can get rid of much smaller particles, like soot, than full-flow filters. Bypass filters reduce engine wear and increase oil volume. However, they are not as efficient as full-flow filters, so they need to be used with a full-flow filter.

• Bypass Oil
• Residual Oil

Regional Insights:

The global Chemical Enhanced Oil Recovery (EOR/IOR) market has been looked at in different parts of the world, like North America, South America, the Middle East, Asia-Pacific, Africa, Europe, and India. In the near future, this market will be led by the global Chemical Enhanced Oil Recovery (EOR/IOR) region.

North America has the most market share because it is home to the biggest players and has a fast rate of technological progress. Asia-Pacific will have the highest growth rate because there will be more research and development, the government will have good investment policies to encourage industrial growth, the economies of emerging countries will be growing quickly, there will be a lot of raw materials available, and there will be more onshore and off-shore applications.

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• France
• Italy
• Spain
• UK
• Nordic Countries
• Denmark
• Finland
• Iceland
• Sweden
• Norway
• Benelux Union
• Belgium
• The Netherlands
• Luxembourg
• Rest of Europe
• Asia-Pacific
• Japan
• China
• India
• Australia
• South Korea
• Southeast Asia
• Indonesia
• Thailand
• Malaysia
• Singapore
• Rest of Southeast Asia
• Rest of Asia-Pacific
• The Middle East & Africa
• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest of the Middle East & Africa
• Latin America
• Brazil
• Argentina
• Rest of Latin America

Scope of Report:

Conclusion:

• This study gives an in-depth look at the enhanced oil recovery market, including current trends and predictions for the future. This helps investors find the best places to put their money.
• The report gives information about the key drivers, barriers, and opportunities in the enhanced oil recovery market, as well as a detailed analysis of the market share.
• In the competitive landscape, there is information about the companies that sell products, their finances, new developments, and their strategies.