Enhanced Oil Recovery Market Research and Opportunity Assessment 2021-2031

Chemical Enhanced Oil Recovery Market: Introduction

Chemical enhanced oil recovery is a type of enhanced oil recovery, which utilizes chemical products such as alkalis, polymers, and polymeric surfactants to extract oil from sub-surfaces. Primary and secondary recovery technique extracts about 10%–20% of the crude oil, whereas the tertiary recovery method extracts about 30%–60% of the oil.

Decline in oil production from aging and mature oilfields and rise in the demand for energy are expected to propel the global chemical enhanced oil recovery market during the forecast period. Chemical enhanced oil recovery techniques are employed in mature oilfields to ramp up the production output. As per the BP Statistical Review 2019, the global oil consumption increased from 4.6 billion tons oil equivalent in 2017 to 4.662 billion tons oil equivalent in 2018.
Increase in capital expenditure on drilling of conventional and unconventional oil and gas resources, such as shale gas and tight gas, to fulfill the demand for petroleum products from several industries, such as automotive and power generation, is a key factor driving the global chemical enhanced oil recovery market.
Fluctuating crude oil prices have increased investments by oilfield service companies in R&D activities to develop better resources; to produce oil at a low price; and to plan a better strategy for recovery of the market. This, in turn, is anticipated to drive the global chemical enhanced oil recovery market during the forecast period. Furthermore, technological innovations related to chemical EOR, such as lower cost of the chemicals used in comparison to price of the crude oil produced and robust hybrid processes, are also likely to drive the market during the forecast period.

The global chemical enhanced oil recovery market can be segmented based on type, application, and region
In terms of type, the global chemical enhanced oil recovery market can be divided into surfactants, alkalis, polymers, and alkaline chemicals. Polymer is one of the most extensively used type of chemicals in the chemical enhanced oil recovery. The injection of polymers with water floods increases oil recovery by reducing permeability to water in a reservoir.
Based on application, the global chemical enhanced oil recovery market can be divided into offshore and onshore. The onshore segment is anticipated to witness considerable growth between 2019 and 2027, due to increase in the number of marginal oilfields. Surge in the demand, from oil and gas producers, in order to maintain production from gas wells and boost the rate of recovery from reservoirs is also likely to drive the global chemical enhanced oil recovery market during the forecast period.
Based on technique, the global chemical enhanced oil recovery market can be divided into polymer flooding (PF), alkali-co-solvent-polymer (ACP) flooding, alkali-surfactant-polymer (ASP) flooding, surfactant flooding, and others. Surfactant flooding is one of the most extensively used techniques in the chemical enhanced oil recovery. By using this flooding technique, residual oil can be recovered by reducing the interfacial tension between the oil and the rock interfaces and the oil and the displacing water.

In terms of region, the global chemical enhanced oil recovery market can be divided into: Middle East & Africa, Latin America, Asia Pacific, Europe, and North America
The chemical enhanced oil recovery market in North America is expected to expand at a significant pace during the forecast period. This growth of the market in the region can be attributed to increase in investments in the exploration of unconventional resources.
The chemical enhanced oil recovery market in Europe is projected to witness significant growth during the forecast period. This growth can be attributed to increase in efforts for production of hydrocarbon resources from depleting oilfields. Ongoing increase in the energy demand backed by rapid industrialization, economic growth, and rise in the per capita income are some of the key factors that have attracted investments by oil and gas operators in the development of mature oilfields.
This market in Asia Pacific is anticipated to expand at the maximum CAGR during the forecast period, due to increase in the number of aging fields in the region
The chemical enhanced oil recovery market in Latin America and Middle East & Africa is projected to expand at a sluggish pace during the forecast period, due to abundance of untapped oil and gas reserves in these regions. For instance, in 2018, Saudi Arabia accounted for 15.7% share of the global proven oil reserves i.e. 266.2 billion barrels of proven oil reserves.