Enhanced Oil Recovery: Technologies and Global Markets
The global enhanced oil recovery market totaled $21 billion in 2012 and is projected to increase to nearly $22.6 billion in 2013; the market should total $34.4 billion by 2018, with a five-year compound annual growth rate (CAGR) of 8.8% from 2013 to 2018.
- An overview of the global market for enhanced oil recovery (EOR) technologies that are implemented to recover crude oil from reservoirs after primary and secondary recovery methods have ceased to be productive enough to continue normal field operation economically.
- Analyses of global market trends, with data from 2010, 2011 and 2012, estimates for 2013, and projections of compound annual growth rates (CAGRs) through 2018.
- Identification of the various EOR products and components, such as injection pumps, wellheads, specialized well tubing, chemical feeder systems, air separation units, gas compressors, blowers, steam generators, specialized storage vessels, and various other equipment and facilities; other important products include oil recovery media such as surfactants, polymers, alkali chemicals, liquid nitrogen, and CO2.
- Discussion of the most recent government, industry, and academic data regarding the amount of oil in place that potentially can be extracted via EOR.
- Examination of government roles in support of EOR technologies worldwide, including regulatory support, government requirements, and promotional incentives for various EOR technologies as relevant and available.
The scope of this investigation includes the major viable EOR technologies that are currently being implemented in the oil industry. These EOR technologies are implemented to recover crude oil from reservoirs after primary and secondary recovery methods have ceased to be productive enough to continue normal field operation economically. In some cases, the EOR technologies considered in this report may also be applied immediately following initial well drilling. These applications are common for fields where primary and secondary recovery technologies are incapable of producing adequate oil in any phase of oilfield operation.
Installation and operation of EOR technologies can include various products and components such as injection pumps, wellheads, specialized well tubing, chemical feeder systems, air separation units, gas compressors, blowers, steam generators, specialized storage vessels and various other equipment and facilities. Other important products of an EOR technology include oil recovery media such as surfactants, polymers, alkali chemicals, liquid nitrogen and CO2. Although steam and onsite-compressed atmospheric nitrogen are also important oil recovery media, they are not considered EOR technology products within this report as they are supplied at minimal or no direct cost, unlike CO2 or specialized injection chemicals that are supplied to an EOR operation.
The market analysis provided in this report is based on a variety of data sources. These include the most recent government, industry and academic data regarding the amount of oil in place that could potentially be extracted via EOR, combined with a supplemental evaluation of major EOR projects that have been announced or that are currently being proposed. Therefore, this report combines “top-down” and “bottom-up” approaches to provide a realistic, robust and accurate assessment of this complex market.
Emerging EOR technologies that may become commercially viable within the next five years are summarized, but are not included in the market assessment of this report. BCC analyzes each major viable EOR technology, determines its current market status, examines its impact on future markets and presents forecasts of growth over the next five years. Additionally, this report provides a breakout analysis for solar enhanced EOR. Solar enhanced EOR was considered only as an emerging technology during under the prior report completed in this series. However, increased deployment indicates that the technology has come sufficiently close to commercialization that additional analysis was deemed practicable and useful. Technological issues, including the latest trends, are assessed and discussed, as are the current and likely regulatory environments in support of this industry.
BCC analyzes the industry on a worldwide basis in terms of its manufacturing and the deployment of its technologies or products. BCC also examines government roles in support of EOR technologies worldwide, including regulatory support, government requirements and promotional incentives for various EOR technologies as relevant and available. BCC provides a review of the most relevant EOR technologies, discusses recent trends in capacity installation and unit sales and provides industry overviews and market assessments for each EOR technology.
Robert Eckard, PhD, has 15 years of experience working in the cleantech, clean transportation, clean/smart cities, advanced fuels, water and energy sectors. Having completed his dissertation at the University of California at Davis, Robert also runs a specialty industry research and technical consulting company, with an emphasis on energy, water and climate-oriented sectors, including those segments relevant to this study. Robert specializes in commercialization, data-based economic analysis, market development and penetration, environmental analysis and technical energy, environmental and market studies for Fortune 500, Global 1000 and promising startups, as well as state and local governments, other consultants and industry organizations throughout the U.S., Canada, Europe, the Middle East, Southeast Asia and Australia. He worked as a subcontractor under the U.S. Department of Energy providing evaluations of a wide array of industrial technologies, systems and related supply markets. He helped to successfully develop new markets in the U.S. and abroad, identify target niches and support highly successful business strategy development. Previously, he produced reports for BCC Research on global markets pertaining to energy, industry, energy efficiency, water and industrial, durable goods and related categories and technologies. Robert works directly in the industries that he analyzes and has successfully secured over $225 million in fund development for specific projects and technologies in the last six years.
Tempered by the ongoing global economic recovery, between 2009 and 2014 the world market for enhanced oil recovery (EOR) technologies is expected to increase by a factor of 3.5, from $4.7 billion to $16.3 billion, a compound annual growth rate (CAGR) of 28.4%.
The most extensive growth, in terms of total dollars, will occur in the North American market. This region was valued at $3.3 billion in 2009 and is expected to increase at a compound annual growth rate (CAGR) of 26% to reach $10.3 billion in 2014.
South America will experience the highest compound annual growth rate (CAGR) of 374%, increasing in value from $1 million in 2009 to $2.4 billion in 2014.