Our in-depth analysis has segmented global enhanced oil recovery market into the following segments:
Global enhanced oil recovery market is further classified on the basis of region as follows:
The global enhanced oil recovery market is likely to thrive at 23.2% CAGR over the forecast period i.e. 2017-2024. Growing oil & gas industry across the globe is expected to bolster the growth of global enhanced oil recovery market in upcoming years. Further, rising need to maximize production value of oil fields is a major factor which is anticipated to foster the growth of market over the forecast period.
In terms of regional platform, the global enhanced oil recovery market is segmented into North America, Asia Pacific, Europe, Latin America and Middle East & Africa regions. Further, North America accounted for lion market share in 2016. Swelled petroleum and other liquid production in U.S. are expected to drive the growth of enhanced oil recovery market in North America region over the forecast period. For instance, total oil & petroleum production in United States reached 14,855 thousand barrels per day in 2016. Further, this remarkable recovery of US oil production is expected to bolster the growth of enhanced oil recovery market in North America region.
Additionally, Asia Pacific enhanced oil recovery market is expected to grow at maximum pace over the forecast period. High dependency of Asian countries on oil & gas energy and government initiatives to strengthen oil & gas sector are likely to be the major growth drivers of enhanced oil recovery market in Asia Pacific region.
Apart from region, the global enhanced oil recovery market is segmented by technology into chemical injection, thermal injection and chemical injection. Among these segments, thermal injection segment is anticipated to garb lion shares in global market of enhanced oil recovery by the end of 2024. Thermal injection method is used in thinning the oil and to improve its flow characteristics.
With the rising consumption of oil & gas energy, the need to increase the oil & gas production is also increasing across all regions. EOR (Enhanced oil recovery) is anticipated to be one of the most adopted solutions to increase the oil & gas extraction rate.
Enhanced oil recovery solution can be found applicable in most of onshore oil fields. Further, high adoption of enhanced oil recovery solution in onshore fields is a major factor which is likely to drive the growth of Enhanced oil recovery market over the next few years. However, the adoption rate of enhanced oil recovery solution is also increasing at satisfactory rate.
Government initiatives to fuel the expansion of oil & gas sector are also expected to positively impact the growth of global Enhanced oil recovery solution in near future. Further, ongoing exploration of new oil fields is also expected to foster the growth of market over the forecast period.
Increasing crude oil production across the globe and high dependency of world on oil energy is a key factor which is augmenting the growth of enhanced oil recovery market during the forecast period. The increasing global energy demand and rising oil prices are expected to drive the demand for enhanced oil recovery techniques in future years.
However, limited number of offshore oil fields is expected to limit the growth of enhanced oil recovery market in upcoming years.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.