Enhanced Oil Recovery Market Analysis

Enhanced Oil Recovery Market Analysis

The thermal EOR market was valued over USD 16 billion in 2016. Growing focus toward development of environment friendly and economically viable solutions will accelerate the industry growth. The thermal recovery involves introduction of heat through injection of steam into the reservoir to reduce the viscosity of heavy oils to boost its flow in the well. Effective operability across dipping, high permeability and thick reservoirs on account of gravity assisted displacement and better heat utilization are some of the significant factors positively influencing the product demand.

Low cost of chemicals along with ability to boost the recovery rates by 70% will instigate the demand for chemical enhanced oil recovery industry. It uses polymers, long chained compounds, to increase the effectiveness of waterfloods or detergent-like surfactants to reduce the surface tension, thereby improving the fluid flow inside the reservoir. However unpredictable performance along with high environment damage have limited the adoption of chemical recovery methods.

Introduction of digital technologies along with declining production rate from existing wells will propel the onshore enhanced oil recovery industry. The operators have integrated sensors and are using extensive data analytics tools for gathering the real time field data that has provided a favorable industry outlook. The Department of Energy (DOE) funded USD 44.5 billion toward various R&D projects and develop innovative technologies. For instance, in 2019, ONGC invested around USD 9.5 billion to ramp up production from three EOR and 13 field development projects.

The offshore enhanced oil recovery market will expand over 20 % by 2024. Declining technology cost coupled with strengthening oil prices will positive enhance the business outlook. Shifting trends toward offshore development owing to massive resource potential and increased economic feasibility have led to initiation of various offshore EOR projects.

North America market is set to grow on account of ongoing discoveries of new hydrocarbon resources coupled with active measures by the government authorities toward adoption of EOR techniques. In 2019, the U.S. Department of Energy announced the funding of USD 40 million toward five coat shared R&D projects, in order to reduce the technical risk of EOR and expand its applicability to unconventional and conventional reservoirs. The investment further aims to develop technologies and improve the characterization that will further result in significant recovery gains.
 

Ongoing strategic initiatives to enhance the production rate along with increasing competition in international markets will stimulate the Middle East market. In 2018, the Abu Dhabi National Oil Company introduced four pilot projects involving, gas, chemical and water injection at their fields, while utilize its carbon capture use & storage technology for enhancement of oil recovery. In addition, adoption of digital technologies including the AI, sensors and automating systems have further improvised the recovery solutions of both government and private players.