Enhanced Oil Recovery Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented By Technology (Gas, Thermal, Chemical, Microbial, Others), By Application (Offshore, Onshore), By Region 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 55.24 Billion
CAGR (2026-2031)	4.21%
Fastest Growing Segment	Offshore
Largest Market	North America
Market Size (2031)	USD 70.75 Billion

Market Overview

The Global Enhanced Oil Recovery Market will grow from USD 55.24 Billion in 2025 to USD 70.75 Billion by 2031 at a 4.21% CAGR. Enhanced Oil Recovery (EOR) encompasses tertiary extraction techniques, primarily thermal recovery, gas injection, and chemical flooding, designed to retrieve residual crude oil following primary and secondary production phases. The market is fundamentally driven by the imperative to maximize yield from maturing global oil fields and the sustained rise in energy consumption which necessitates extending the productive life of established assets. Furthermore, the economic convergence of hydrocarbon extraction with carbon capture utilization provides a critical impetus for growth, as regulatory frameworks increasingly incentivize carbon dioxide injection to simultaneously sequester emissions and bolster output.

However, the sector faces a substantial challenge regarding the high capital expenditure and technical complexity required for advanced injection infrastructure. These financial hurdles can impede project sanctioning, particularly in cost-sensitive offshore environments where operational margins are tighter. Despite these barriers, industry activity remains robust in key supporting sectors. According to the Global CCS Institute, in 2024, the global pipeline of carbon capture projects, which frequently serves as the essential feedstock source for carbon dioxide enhanced oil recovery operations, surged by 60 percent to comprise 628 facilities.

Key Market Drivers

The Growing Integration of Carbon Capture, Utilization, and Storage (CCUS) Technologies is fundamentally reshaping the market by transforming regulatory liabilities into operational assets. Oil producers are increasingly deploying closed-loop systems that reinject captured emissions to repressurize reservoirs, thereby lowering the carbon intensity per barrel produced while qualifying for tax incentives. This synergy is exemplified by major national oil companies scaling up their decarbonization infrastructure to maintain viability in a low-carbon economy. According to Petrobras, February 2024, in the 'Production and Sales Report 4Q23', the company achieved a record annual reinjection of 13 million tons of carbon dioxide into pre-salt fields during the previous year to boost recovery and reduce emissions. Such initiatives demonstrate how EOR is evolving from a purely extractive method into a critical component of the global energy transition strategy.

Simultaneously, the Increasing Prevalence of Mature Fields Necessitating Production Life Extension serves as a primary catalyst for industry investment. As conventional discoveries dwindle, operators must deploy tertiary recovery techniques to sustain output from aging assets to meet baseload energy requirements. According to the Organization of the Petroleum Exporting Countries, in 2024, global oil demand is projected to reach approximately 104 million barrels per day, creating immense pressure to maximize yield from existing reserves. Advanced injection techniques are essential to retrieve residual hydrocarbons that primary and secondary methods leave behind. Highlighting this potential, according to Occidental Petroleum, October 2024, in a presentation to the Society of Petroleum Engineers, the application of captured anthropogenic carbon dioxide in the Permian Basin has the potential to unlock 2 billion barrels of remaining recoverable oil, securing long-term supply stability.

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Key Market Challenges

The high capital expenditure and technical complexity associated with advanced injection infrastructure constitute a significant restraint on the Global Enhanced Oil Recovery Market. Tertiary extraction methods require substantial upfront investment for specialized equipment, such as gas compressors, chemical injection systems, and thermal generators, which are considerably more expensive than the infrastructure used in primary or secondary recovery phases. These elevated costs create a high barrier to entry and complicate the economic justification for new projects, particularly for operators managing mature fields with declining profit margins.

Consequently, the financial risk associated with these capital-intensive projects frequently leads to delays in Final Investment Decisions or the cancellation of planned developments. This hesitation is acute in offshore environments, where logistical challenges further inflate operational expenses. According to the International Energy Agency, in 2024, global upstream oil and gas investment costs increased by 7 percent to reach USD 570 billion, reflecting a broader inflationary trend that strains the fiscal viability of complex tertiary recovery ventures. As capital costs rise, energy companies are increasingly likely to allocate budgets toward lower-risk, short-cycle conventional assets rather than long-term enhanced recovery operations, thereby directly slowing the expansion of the market.

Key Market Trends

The Implementation of Artificial Intelligence and Digital Twins for Reservoir Monitoring is revolutionizing the sector by enabling real-time optimization of injection strategies. Unlike traditional modeling, these digital tools allow operators to simulate complex subsurface interactions and adjust chemical or thermal inputs dynamically to prevent early breakthrough and maximize sweep efficiency. Service providers are capitalizing on this demand by offering integrated platforms that merge geological data with machine learning algorithms to predict flow behaviors with unprecedented accuracy, directly addressing the industry's need for higher recovery rates without proportional cost increases. According to SLB, January 2025, in the 'Fourth-Quarter and Full-Year 2024 Results', the company’s digital revenue grew by 20 percent year-on-year to reach USD 2.44 billion, underscoring the rapid industrial uptake of these advanced monitoring solutions.

Simultaneously, the Adoption of Solar-Powered Thermal Steam Generation Systems is gaining traction as a viable alternative to conventional gas-fired methods, particularly in regions with high solar irradiance. This trend is driven by the dual need to reduce the carbon intensity of thermal recovery operations and to conserve valuable natural gas for export or power generation rather than burning it for steam. By utilizing concentrated solar power to generate the steam required for viscosity reduction, operators can significantly lower operating costs and decouple production from volatile fuel prices. Highlighting the long-term strategic reliance on such sustainable tertiary techniques, according to the Oman Daily Observer, August 2025, in the article 'EOR share of PDO's crude oil output to spike to 28% by 2031', Petroleum Development Oman projects that enhanced oil recovery projects will account for approximately 28 percent of its total crude oil production by 2031.

Segmental Insights

The Offshore segment is currently recognized as the fastest-growing category within the Global Enhanced Oil Recovery Market, primarily driven by the increasing maturation of onshore fields and a strategic shift toward deepwater reserves. Energy companies are utilizing gas injection techniques to maximize production from existing marine infrastructure, effectively extending the operational life of subsea assets. Furthermore, the segment benefits from the integration of carbon capture and storage initiatives, as offshore reservoirs provide secure geological formations for carbon dioxide sequestration during the extraction process. This dual utility encourages significant investment in marine recovery projects globally.

Regional Insights

North America holds the leading position in the Global Enhanced Oil Recovery market, driven primarily by the extensive presence of mature oil fields in the United States that require secondary extraction methods to sustain production. The region benefits from substantial investments in unconventional shale resources and established infrastructure for large-scale carbon dioxide injection. Furthermore, the United States Department of Energy actively supports the sector through initiatives focused on carbon capture, utilization, and storage. This combination of resource density, technological application, and government backing solidifies the region's market dominance.

Recent Developments

• In October 2024, PT Pertamina (Persero), in collaboration with partners including JAPEX and JOGMEC, commenced an inter-well carbon dioxide injection test at the Sukowati field in East Java, Indonesia. This field trial marked a critical step in the implementation of Carbon Capture, Utilization, and Storage (CCUS) combined with Enhanced Oil Recovery (EOR) in the region. The project involved injecting significant quantities of CO2 into the reservoir to verify the effectiveness of the gas in displacing residual oil and boosting production. The initiative aligns with Indonesia's broader goals to increase national oil output while simultaneously managing industrial carbon emissions.
• In April 2024, SLB entered into a definitive agreement to acquire ChampionX Corporation in an all-stock transaction valued at approximately $7.8 billion. This strategic acquisition was aimed at strengthening SLB’s position in the production and reservoir recovery space, specifically by integrating ChampionX’s leading production chemicals and artificial lift technologies. The Chief Executive Officer of SLB highlighted that the move would allow the company to provide integrated solutions to maximize asset value and efficiency during the production phase. The merger was designed to address growing demand for technologies that enhance recovery rates in maturing oil and gas fields globally.
• In February 2024, Occidental Petroleum Corporation announced plans to significantly expand its enhanced oil recovery operations in the Permian Basin by integrating captured carbon dioxide. The company revealed it would bring approximately 60 new wells online that utilize carbon capture technology to extract residual oil. This initiative links the company’s direct air capture facilities with its upstream production, aiming to produce net-zero carbon oil. Executives stated that these wells were expected to add substantial daily production volumes, with the enhanced recovery process playing a central role in the firm’s strategy to maintain output levels while managing carbon emissions.
• In February 2024, Petróleo Brasileiro S.A. (Petrobras) confirmed the advancement of its High Pressure Separation (HISEP) technology, designed to separate carbon dioxide from oil on the seabed rather than on floating platforms. The company announced that the pilot phase would be implemented in the Mero field within the Santos Basin pre-salt area. This proprietary technology allows for the immediate reinjection of CO2 into the reservoir, enhancing oil recovery efficiency while reducing greenhouse gas emissions and surface processing requirements. The project represents a significant investment in decarbonization and production optimization for ultra-deepwater fields.

Key Market Players

• ExxonMobil Corporation
• Chevron Corporation
• Royal Dutch Shell plc
• BP plc
• Schlumberger Limited
• Halliburton Company
• TotalEnergies SE
• ConocoPhillips
• Occidental Petroleum Corporation
• Baker Hughes Company

By Technology	By Application	By Region
Gas Thermal Chemical Microbial Others	Offshore Onshore	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Enhanced Oil Recovery Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Enhanced Oil Recovery Market, By Technology:

• Gas
• Thermal
• Chemical
• Microbial
• Others

• Enhanced Oil Recovery Market, By Application:

• Offshore
• Onshore

• Enhanced Oil Recovery Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE