Microbial Enhanced Oil Recovery Market Trends

Growth Drivers

• Growing Demand for Crude Oil and Oil Products – Crude oil has been on a constant rise owing to its usage in various end-use industries such as transportation, automotive, energy, petrochemical, plastics, and many others. As crude oil is obtained through the drilling processes, the growing need for crude oil is expected to increase the utilization rate of microbial enhanced oil recovery (MEOR) for optimum results in drilling process. As per the latest data available, the daily demand for crude oil across the world increased from 90 million barrels per day in 2020 to 100 million barrels per day in 2022. This figure is supposed to further increase and reach 105 barrels per day in 2026.
• The Rise in Oil Exploration & Production Activities – In the recent period, the government of different nations has been focusing on increasing the number of oil exploration and production activities to meet the global demand for oil and oil products. With the increase in the number of oil exploration projects, the demand for microbial enhanced oil recovery (MEOR) is also anticipated to rise which in turn, is projected to aid in the expansion of the global microbial enhanced oil recovery (MEOR) market during the analysis period. For instance, global oil production was calculated to be around 90 million barrels per day across the world which is further anticipated to increase to approximately 150 million barrels per day by 2033.
• Constant Support by Various Governments – By 2024, the Indian government is planning to invest around USD 120 billion in the oil and gas industry. Out of these USD 120 billion, USD 60 billion is expected to direct towards exploration and production (E&P) activities, and the rest USD 60 billion in natural gas infrastructure.
• High Expenditure in Research & Development – World Bank released the global expenditure made in the Research & Development (R&D) sector which showed that in 2020 it was 2.63% of the total GDP. This is an increase from year 2.14% of the total GDP in 2016.

Challenges

• High Cost of Procedure – The process of microbial enhanced oil recovery is the utilization of bacteria and their by-products for increased mobility of oil from the reservoirs. This process requires a lot of investment. This factor is anticipated to hamper market growth during the forecast period.
• Increased Risks During the Drilling Processes
• Fluctuation in the Price of Crude Oil and End Products