Enhanced Oil Recovery Market to Grow at 7.5% CAGR till 2027; Rising Demand for Fossil Fuel Energy Worldwide to Boost Market Prospects

The global enhanced oil recovery market size is set to touch USD 20.06 billion by 2027 owing to increasing investment in offshore hydrocarbon reserves, finds Fortune Business Insights™ in its report, titled “Enhanced Oil Recovery Market Size, Share & Industry Analysis, By Technology (Thermal Injection, Gas Injection, and Chemical Injection), By Application (Onshore and Offshore), and Regional Forecast, 2020-2027”. The report states that the market value stood at USD 15.77 billion in 2019 and expected to exhibit a CAGR of 7.5% from 2020 to 2027.

USGS Develops Novel Assessment Method for CO2-based EOR

Development of innovative and effective enhanced oil recovery (EOR) techniques is emerging as one of the leading enhanced oil recovery market trends and government bodies are pumping money into research to accelerate the process. In March 2020, the US Geological Survey (USGS) unveiled its new assessment method for estimating the level of oil and gas production that can be reached through carbon dioxide (CO2) injection into oil reservoirs. CO2-based EOR is gaining traction across oil-producing countries as the method is efficient in boosting the production of petroleum from fields that have already been drilled. Injecting CO2 into the reservoir allows crude oil to flow into the well smoothly, which thus enhances the output of the wellbore. The method developed by the USGS will allow operators to estimate with greater precision the viability of deploying EOR at the site, thus optimizing production.

To get a detailed report summary and research scope of this market, click here:

https://www.fortunebusinessinsights.com/industry-reports/global-enhanced-oil-recovery-market-100471

Threats to Energy Security to Inhibit Market Growth

Concerns surrounding energy security are growing around the world and the price war between two major oil producers, Russia and Saudi Arabia, has made the situation even more acute. Both countries are looking to reach an agreement that will effectively balance out the supply-demand volatility of oil and establish an appropriate price suitable for the Saudi Arabia-led Organization of Petroleum Exporting Countries (OPEC) and Russia. However, the COVID-19 outbreak has the exacerbated the complexity of the issue. In March 2020, Saudi Arabia sought to cut the oil supplies by 1.5 million barrels a day owing to the drastic drop in demand from China, which was reeling under the coronavirus epidemic. Thus, as the COVID-19 continues to spread across the globe, energy security is likely to remain fragile and will diminish the enhanced oil recovery market value in 2020.

Increasing Investment in Onshore Oil Recovery in the Gulf to Intensify Competition

Majority of the competitors in this market are government-backed entities and their primary focus is to raise domestic production levels of crude oil and reduce their dependency on oil imports. On the other hand, oil-rich countries in the Middle East such as Iran and Oman are taking continuous efforts to meet the growing energy demand in East and South Asia. As a result, many of these countries are aggressively countering influence of the European Union (EU) and the US in their internal economic affairs and ensuring stability in oil production and supply. This has prompted governments in the region to adopt advanced technologies to accelerate production and emerge self-sufficient.

Industry Development:

• February 2020: Iran’s Petroleum Ministry announced that it will awarding a contract worth USD 1.3 billion to the MAPNA Group, the country’s prime power construction company. Under the contract, the company will employ EOR to improve oil recovery in two oilfields located in the Khuzestan province.

List of Key Players Covered in this Market Report:

• Ecopetrol (Colombia)


• Lukoil (Russia)


• China Petrochemical Corporation (China)


• ConocoPhillips (United States)


• BP (United Kingdom)


• Chevron (United States)


• Petroleum Development Oman (Oman)


• Petrobras (Brazil)


• Cairn Oil & Gas (India)


• China National Petroleum Corporation (China)


• Husky Energy (Canada)


• Oxy (United States)

Further Report Findings:

• The thermal injection technology segment is expected to display stable growth as this method is the most widely deployed technique for oil recovery. In 2019, the segment dominated this market share at 41.1%.


• The EOR market size in North America stood at USD 5.72 billion in 2019 and the region is anticipated to the lead the market owing to the multiple tax incentives offered by the US government to oil production companies.


• In Latin America, the market will be mainly driven by the extensive adoption of EOR in Brazil and Venezuela, while the COVID-19 outbreak is expected to hinder oil production in Europe and the Middle East.

Table of Segmentation: