Enhanced oil recovery (EOR), also referred to as improved oil recovery or tertiary oil recovery, is most often achieved by injecting a liquid or gas into an oil reservoir, thereby lowering oil viscosity and increasing the amount of oil available for production. Some of the more common EOR methods include CO2-EOR, thermal EOR and chemical EOR. Microbial EOR and seismic EOR also hold a strong niche in the EOR market. While only about 10% - 30% of oil is typically extracted by conventional oil production processes, EOR methods can enhance these recovery rates by an additional 5% to 20%, on a conservative average.
The global market for EOR, estimated at nearly $62.5 billion (for barrels of crude oil) for 2009, has shown exciting growth since 2005, when it totaled $3.1 billion. Technological challenges, hazy regulations, and costly implementation have often kept oil companies from using EOR. However, EOR is quickly becoming more feasible, due to rising government interest and investment, new technologies, and increased availability of required materials (such as CO2). It is expected EOR will continue to perform extremely well in the world marketplace.
The world’s governments’ interest in EOR has been fueled by a number of factors, the most obvious being an increase in oil production. Besides increasing oil revenue, countries that are able to increase their oil production are often lowering their increase in demand for oil imports. There is also much anticipation regarding the use of CO2-EOR to sequester CO2 permanently in the ground. It is estimated 130 billion tons of CO2 worldwide could potentially be captured through the use of CO2-EOR, which would help to reduce industrial emissions, and in turn reduce greenhouse gas emissions. Some governments are also taking note that EOR has the potential to propel substantial economic growth. In Texas, where EOR now accounts for 20% of its oil production, it is estimated the benefits of EOR production will result in additional revenue of $200 billion and will create 1.5 million jobs.
Many of the world’s oil fields have experienced or are experiencing a decline in oil production; using EOR has the potential to reverse this downward trend. Oman’s historical oil production reflects this; between 2001 and 2007 its oil production fell by 27%, but by 2009, due mostly to EOR projects, oil production increased by 17%.
EOR Enhanced Oil Recovery Worldwide contains comprehensive historical (2005-2009) and forecast (2010-2015) data; plus EOR’s share of overall standard oil production, market size in terms of barrels of oil, and dollar value. This report identifies key trends, regulations, new technologies, economic factors, environmental factors, and industry hurdles affecting the direction and size of market growth, and discusses market size and growth in various countries. Profiles of major - or simply interesting - companies using EOR are also included.
Read an excerpt from this report below.
The information in EOR Enhanced Oil Recovery Worldwide is based on data from government agencies, such as the U.S. Census Bureau, U.S. Department of Energy, and the Central Intelligence Agency; trade associations; business, science and law journals; company literature and websites; interviews with key individuals; and from research services and institutes from around the world.
How You Will Benefit from This Report
EOR Enhanced Oil Recovery Worldwide details significant trends, numbers, and technologies for a clear overview of the complex EOR market.
This report will help:
Managers identify market opportunities and develop implementation plans for EOR.
Research and development professionals stay on top of competitor initiatives, and to explore the ups and downs associated with EOR projects.
Advertising agencies working with clients in the oil and energy industries to help design appropriate messages and images for the EOR market.
Business development executives understand the dynamics of the market and identify possible partnerships.
Information and research center librarians access vital information.
Market Insights: A Selection From The Report
Mature Oilfields in Russia Benefit from EOR
Russia produced over 3.5 billion barrels of total oil in 2008, accounting for nearly 11.5% of
the world’s total oil production for that year. Russia has seen some fluctuations in its overall
oil production: In 1988 the country experienced a peak in oil production bringing in nearly
4.6 billion barrels for the year; however, following the collapse of the Soviet Union in 1991,
oil production fell dramatically to about 2.2 billion barrels. According to the U.S. Energy
Information Administration’s Independent Statistics and Analysis: Russia, this plummet in
production may have been partly caused by the depletion of the country’s largest oil fields
due to state-mandated production surges and a lack of investment in field maintenance.
Most of the country’s oil reserves, figured to total 60 billion barrels, are located in Western
Siberia between the Ural Mountains and the Central Siberian Plateau. Eastern Siberia has
been left relatively unexplored. In 2006, about 24.0% of Russia’s oil production came from
fields that had already produced 60.0% of their total recoverable reserves. While new field
development is expected to help offset production losses at older oil fields, Russia is also
looking at EOR to increase the country’s oil production. Lukoil Oil Co. (Lukoil), which was
responsible for 18.0% of Russia’s oil production and 19.0% of its refining capacity in 2009,
is highly invested in EOR, claiming 5,376 EOR operations in 2008. In 2007 EOR techniques,
mostly comprised of the hydrocholoric acid fracturing method, accounted for more than
26.0% of Lukoil’s total Russian production. The company’s Volga and Ural regions are both
large fields that have seen a production revival through the use of EOR - in 2008 these fields
accounted for nearly 16.0% of Lukoil’s oil production in Russia. It is likely Russia will
continue see growth in its EOR production - especially with Lukoil at the helm.
United States Favors CO2-EOR
In 2008 nearly 643,000 barrels of oil per day (bopd) were produced using EOR in the United
States, which was down from 1992, when 761,000 bopd were produced. The drop in EOR
production was likely caused by the decline in oil produced from thermal methods. CO2-EOR, however, is on the rise - its production in 2008 reaching nearly 240,000 bopd, up from
28,000 bopd in 1986. In the U.S. Department of Energy’s Independent Statistics andAnalysis: United States, it is stated CO2-EOR has the potential to add 89 to 430 billion
additional barrels to U.S. resources. Texas alone is responsible for nearly 80.0% of all CO2-
EOR in the United States and 20.0% of overall EOR production in the United States. West
Texas’ Permian Basin has been produced using the CO2-EOR method for decades. In the
early 1970s Chevron Corp. (Chevron) built a 230-mile pipeline to bring CO2 from gas
processing plants in the Val Verde Basin to the Kelly-Snyder Field, which housed the
Permian Basin’s first large-scale tertiary project, using CO2-EOR.
Other successful CO2-EOR projects in the United States include Anadarko Petroleum Corp.’s
(Anadarko’s) Salt Creek Field - one of the largest oil fields in the region - located in
Wyoming’s Powder River Basin. Anadarko expects to sequester 40 million metric tons of
CO2 and produce an additional 150 million barrels of oil through EOR in the Salt Creek
Field. Chevron Corp.’s Rangely Field in Colorado, which is one of the world’s largest and
longest running operations in the world, has produced an additional 100 million barrels of oil
and natural gas liquids from its CO2-EOR production. BP PLC is using an interesting EOR
method in its Prudhoe Bay oil field that involves alternating waterfloods along with natural
gas liquid injections. Mike Utsler, asset manager for the Greater Prudhoe Bay Are for BP
Exploration Inc., says in the Alaska Journal of Commerce, April 6, 2008, that this enhanced
oil recovery method, along with a steady pace of investment in drilling and implementing a
variety of new technologies, has helped to produce an additional 3 billion barrels on top of
the 12 billion barrels than was initially projected for the Prudhoe field in 1969.
In the News
Six Clean Energy Markets That Will Change Life As We Know It in the Next Five Years
New York, August 26, 2010 - Renewable energy is receiving a big push from the Obama Administration and from governments around the globe. Stimulus packages and government incentives for green technology has created jobs and established new industry, which in turn has sparked a brighter outlook on the world's economy. Going into 2011 and beyond, SBI Energy has identified six clean energies that will not only gain double-digit growth in the next five years, but will also alter the lifestyle we know today.
Green Building Materials and Construction - Traditional construction creates considerable debris which ends up in our landfills, soil and fresh water supply. Furthermore, inefficient materials used in construction produce higher energy bills for the homeowner. The judicious use of recycled materials, lumber that is harvested from sustainable forests, more efficient insulation and windows, and improved construction techniques can drop energy bills for consumers while reducing the need for raw materials simultaneously. Market research performed by SBI Energy forecasts the size of the global green building materials market to grow to over $580 billion by 2015 from about $160 billion in 2010. This represents a growth rate of 21% CAGR which is significant but understandable in light of increasing demand for products that save energy and minimize harmful environmental effects.
Enhanced Oil Recovery - EOR refers to a variety of oil producing methods, by which 70% - 90% more oil is produced from oil wells than is typically extracted by conventional oil production methods. Some of the more common EOR methods include steam, gas or chemical injection, which improve the viscosity of the oil, enabling the oil to flow more freely out of the well. More oil indicates lower prices. SBI Energy estimates dollars from EOR will climb steadily with some gentle fluctuations. SBI's analysts calculate the EOR market will experience a compound average growth rate (CAGR) of 63% per year over the 6-year span to total $1.3 trillion in 2015.
Solar Technology - We've all seen the solar panels on residential home roofs and today energy providers are multiplying this concept by installing large solar farms and using concentrated solar power (CSP) technology to supplement power demands. Electricity from CSP technology is generated like conventional electricity, except solar power is used to heat the boiler instead of fossil fuels. Global CSP installations are just getting started and SBI Energy expects to see real growth in the segment beginning in 2012.CSP is the fastest growing segment within the solar technologies, going from $0.7 billion in 2010 to $3 billion in 2014, a CAGR of 42% for the period. Including systems and panels, SBI Energy sees the world solar market growing to $173 billion in 2014 - a CAGR of 28%.
Offshore Wind Farms - Coastal area will have a new view as nations increasingly harness the renewable energy generated by the fierce winds a few miles off their shorelines. During the next five years, SBI Energy expects offshore wind farms to crop up at a much faster pace than land-based turbines. Leading manufacturers of turbines and components are riding the wave of production expected to result from growing interest in offshore projects, such as the recent approvals of Cape Wind in Massachusetts and The Offshore Wind Economic Development Act in New Jersey. Helping them accelerate their offshore initiatives are government cash and tax incentives that promote renewable energy development, particularly in Europe and the U.S. "States are leading the way in off-shore wind development because it spurs economic development, helps to stabilize energy costs, and moves our country towards energy independence in a sustainable fashion," comments Donald Carcieri Governor of Rhode Island. SBI Energy forecasts the global market to grow at a five-year CAGR rate of 11% to reach more than $78 billion. The fastest growth will come from the U.K., which will more than double its offshore market value to reach nearly $5 billion in 2015.
Electric Vehicles - For years the marketing and advertising from government and car companies alike have boldly stated that electric cars will take over the car industry “real soon now.” Now, electric vehicles, in the form of hybrids that combine both gas and electric motors, are finally beginning to do just that. The world populace is accepting hybrid electric vehicles, giving them equal weight as an option in their car purchases. Just how quickly this market will grow depends on several factors including gas prices, government incentives and vehicle price. According to market research from SBI Energy worldwide hybrid electric vehicle sales will double from just under 700,000 units sold in 2009 to 1.5 million passenger hybrid vehicles sold in 2014. Exponential HEV market growth will occur in smaller existing markets such as Europe, Australia and South Korea, and in new markets such as India and China where product sold will increase from 95,000 vehicles in 2010 to 440,000 vehicles in 2014, a phenomenal 47% compound annual growth rate.
Smart Grid Technologies - Implementing and integrating all of the renewable energies is somewhat contingent on the upgrade of our existing dilapidated 100 year old electrical grid to a powerful sophisticated smart grid system. The smart grid can be seen in broad outline as an architectonic structure consisting of three major sectors: grid infrastructure; information and communications technology (ICT); and applications and software (A/S). Despite consumer concerns over privacy and cost regulation, the smart grid will encourage clean energy production and ensure reliable electrical supply to the world through digital grid operation and a distributed network. SBI Energy sees the global smart grid market soaring upward nearly 150% between 2009 and 2014, reaching $171 billion in 2014. Meanwhile, the U.S. market is projected to double over the timeframe to about $43 billion by 2014.
SBI Reports has been leading industrial market research reporting for more than a decade. The brand established SBI Energy to address the complex nature of the Energy and Resources industry. SBI Energy reports capture data vital to emerging energy market sectors on a global scale. Growth of energy technology, manufacturing, construction, transportation and investment is exciting in its innovations and opportunities, and integral to the advancement of security and science. SBI relies upon only the most experienced analysts with excellent credentials, years of industry experience, and the trust of colleagues and peers. For more information please visit us at www.sbienergy.com.
Electric Vehicle (EV) and Plug-In Hybrid Electric Vehicle (PHEV) Markets Worldwide
Smart Grid and Consumers
Global Green Building Materials and Construction, 2nd Edition
Offshore Wind Farm Manufacturing Worldwide
U.S. Solar Energy Market World Data, 2nd Edition: PV, Solar Thermal, CSP
# # #
In the News
Governments Worldwide Invest in Enhanced Oil Recovery Applications,
Spur Market Past $1 Trillion by 2015
New York, March 24, 2010 - With the world’s oil fields experiencing a decline in production, enhanced oil recovery (EOR) applications that produce more oil from oil wells than conventional methods are garnering government attention as solutions to reverse the downward trend. As a result, the market value of EOR applications is projected to explode from $63 billion in 2009 to $1.3 trillion in 2015, according to EOR Enhanced Oil Recovery Worldwide by leading industrial market research firm SBI Energy.
Conventional oil recovery methods are only able to extract about 10%-30% of the original oil from any given reservoir, leaving nearly 70%-90% of the reservoir’s oil untouched. The implementation of EOR methods has the potential to add an estimated 242 billion barrels of oil to worldwide proven reserves. Technologies created for EOR include everything from gasification and carbon capture and storage (CCS) technologies to an array of chemicals and a breed of tiny well-monitoring robots.
“In the past, oil companies often avoided using EOR due to technological challenges, hazy regulations, and costly implementation. But not anymore,” says Shelley Carr, publisher for SBI Energy. “EOR will continue to perform extremely well in the world marketplace due to rising government interest and investment, new technologies, and the increased availability of required materials.”
The EOR market—which includes oil produced through EOR recovery methods, such as thermal recovery, gas injection, and chemical injection, in addition to other methods including microbial and seismic recovery methods—is forecast by SBI Energy to experience an average growth of 67% per year over the span of the six-year forecast period from 2009-2015.
The United States, Canada, and China combined to account for more than half of the global EOR production last year. SBI Energy expects the market share to become more evenly spread out between countries as more governments around the world begin to compete in an effort to maximize their respective country’s ability to not only increase oil revenue through increased production, but to also lower their country’s demand for oil imports in the process. By 2015, the big three producers from 2009 are forecast to hold only a third of the EOR market share.
EOR Enhanced Oil Recovery Worldwide contains comprehensive historical (2005-2009) and forecast (2010-2015) data; plus EOR’s share of overall standard oil production, market size in terms of barrels of oil, and dollar value. The report identifies key trends, regulations, new technologies, economic factors, environmental factors, and industry hurdles affecting the direction and size of market growth, and discusses market size and growth in various countries. Profiles of major companies using EOR are also included.
About SBI Energy SBI Energy,a division of MarketResearch.com, publishes research reports in the industrial, energy, building/construction, and automotive/transportation markets. SBI Energy also offers a full range of custom research services.
The Global Market for Enhanced Oil Recovery, 2010: EOR Seeds Bear Juicy Fruit - Blog
The enhanced oil recovery (EOR) market has experienced huge growth, catapulting itself from $3.1 billion in market value in 2005 to $62.5 billion in 2009. Fueling the EOR market is a worldwide interest to increase oil production, stabilize oil production and, in some cases, to at least slow undeterrable production decreases.
Many countries, heavily reliant on their oil revenue, are implementing EOR projects out of necessity. Saudi Arabia’s attitude is a definite exception to this trend. The country is planning a CO2-EOR project in the world’s largest oilfield. Interestingly, the oil-rich country is stating that it is implementing this project more to curb its greenhouse gas emissions than to increase its oil production.
The realm of EOR is quickly becoming recognized as a reliable and well-tested market, enabling more oil companies to be able to look to EOR as a viable option. This market solidification is expected to continue, as EOR regulations become more concrete, technology advances and material supplies become more available. Billions of dollars invested in EOR research and development have also helped the market to stabilize. Ensuing technologies range from new flue gasification systems to compelling well-exploring robots (said to be the width of a human hair). Huge potential has been found for EOR in geological areas, previously thought to be economically unworthy of production, such as in the oilsands of Canada. While mining operations are currently producing oil from the oilsands region, most of the oil lies too deep for mining procedures to be economically feasible, leaving the doors wide open for EOR.
Other company types, outside the oil arena, are also taking advantage of the growth in EOR, and at the same time are helping to propel the EOR industry. Many large industrial emitters of CO2 have joined forces with oil companies to provide them with anthropogenic CO2 for their CO2-EOR projects, and have thereby reduced their own greenhouse gas emissions. Other industry affiliates affecting the growth and direction of the EOR market include chemical and solvent manufacturers, pipeline manufacturing and installation companies, equipment and component companies, consulting and investment firms and research centers.
Many factors - ranging from scientific developments and environmentalists’ actions to government incentives and market regulations - have the potential to influence the EOR market. For example, scientists are now questioning whether oil indeed comes from dead matter that takes millions of years to transform, and are suggesting instead that it may be a renewable resource that comes from deep within the earth. If this theory is found to be true, EOR may take a divergent path, along with the entire oil industry, to focus on deep oil well production.
The oil industry, heavily influenced by gas prices, economics and politics on a global level, is likely to experience unforeseen spurts and setbacks in its growth; however, SBI Energy projects the EOR market will continue to see substantial growth, as oil reservoirs worldwide continue to mature and as EOR becomes more commonplace. EOR growth in each country is highly influenced by its own internal web of economic and political influences, causing EOR to take off more quickly in some countries than in others.
The global EOR market holds exciting promises for the oil industry’s future; although, there are still many stones unturned and paths to be explored, it seems there is only one direction for the trajectory of the EOR market, and that is up.