Improved Chemistries Have Enhanced Oil Recovery Rates to Up to 70% While Higher Oil Prices Make the Technology More Economically Viable, Amid Dwindling Production Levels in Major Oilfields Worldwide, Says Lux Research
BOSTON, MA--(Marketwired - Jul 22, 2014) - Once considered risky and expensive, the $500 million chemical enhanced oil recovery (EOR) market has been revitalized by higher oil prices, improved chemical formulations and advances in laboratory analysis, with Canada and the Middle East leading the way for global expansion, according to Lux Research.
With rising demand for oil and dwindling production, EOR techniques are growing in importance on account of their ability to boost ultimate recovery rates to as high as 70% of the original oil in place (OOIP), compared to 40% for traditional methods. On account of sustained higher oil prices of over $100 a barrel, many of these techniques have become economically viable, too.
"Chemical EOR still only accounts for a tenth of global production from EOR today but is applicable in many fields that are incompatible with other forms of EOR," said Daniel Choi, Lux Research Analyst and the lead author of the report titled, "New Age of Oil Drives Growth of Chemical Enhanced Oil Recovery."
"Besides, changes in the market and improvements to the chemical EOR process have allowed projects once considered uneconomical to now be viable," he added.
Lux Research analysts evaluated advances in chemical EOR and their applications in oilfields worldwide. Among their findings:
The report, titled "New Age of Oil Drives Growth of Chemical Enhanced Oil Recovery," is part of the Lux Research Exploration & Production Intelligence service.
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