Oil Recovery Chemicals Oil Recovery Chemicals Market to Quadruple
The rapid depletion and ageing of crude oil reserves worldwide boosts the market for enhanced oil recovery chemicals in Europe and the US. According to analyst company Frost & Sullivan, the market for these speciality process aids could quadruple within the next six years...
The rapid depletion and ageing of existing crude oil reserves are set to fuel the enhanced oil recovery (EOR) chemicals market. The market will develop rapidly on a platform of innovative, sustainable and economically viable offerings.
A new analysis from Frost & Sullivan of the market for enhanced oil recovery chemicals in the United States and Europe, finds that the market earned revenues of US $ 409.3 million in 2012 and estimates this to reach US $ 1,775.1 million in 2019. The research covers polymers, surfactants, alkaline chemicals, surfactant-polymer formulations, alkali-surfactant-polymer formulations, and other chemicals segments.
EOR Technologies Help to Untap new Reserves
“The demand for energy has been rising continuously in the United States and Europe, even while crude oil reserves have been depleting, especially in Europe,” noted Frost & Sullivan Chemicals & Materials Industry Analyst Anna Jarosik. “Many oil reserves in both regions are already at the mature stage, making further oil extraction ever more challenging. This has highlighted the importance of highly efficient EOR chemicals.”
EOR technology is also gaining appeal because it offers access to hard-to-reach resources. Ten years back many significant deposits in the U.S. and Europe remained trapped underground because it was economically unfeasible to tap these resources and produce oil.
“At present, major oil producers have tried to locate and explore such trapped underground resources through advanced exploration methods and intensive use of EOR chemicals,” remarked Jarosik. “In this context, tertiary crude oil recovery by chemicals injection offers significant opportunities to EOR chemicals manufacturers.”
Escalating energy needs are driving advances in EOR technology, as oil producers seek to optimally extract crude oil. At the same time, sustained high oil prices are making the use of EOR chemicals economically viable.
Oil Industry Teams Up With Chemicals Suppliers
However, EOR projects are among the most complex and difficult undertakings in the upstream oil industry. Many EOR chemical solutions and their enhanced oil recovery applications are still in the pilot stage. Such factors are expected to restrain market growth.
“Close and active partnerships with key oil producers as well as EOR technology providers will generate growth potential for the EOR chemicals market,” concluded Jarosik. “EOR chemical manufacturers should focus on achieving improved extraction efficiency, cost reduction, better regulatory compliance, and multi-application capabilities.”