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Emerging Trends in Enhanced Oil Recovery
Chemicals Market in the United States and
Europe
2
I’ve more then four years experience in a broad range of chemicals and
materials industry sectors in Europe and the Commonwealth of Independent
States (CIS).
I’ve extensive expertise in construction chemicals and materials, plastics
materials, photovoltaics and water, wastewater and sludge treatment chemicals
markets as well as EOR chemicals markets
Before Frost & Sullivan, I was involved in research based on nano-composite
lithium salt electrolytes which can find application in various electrochemical
devices
I’ve a Doctorate in Chemistry from Max Planck Institute for Solid State
Research/Stuttgart University, Stuttgart, Germany a Master of Science and
Engineer in Chemical Technology (Process and Chemical Engineering) from
Poznan University of Technology, Poznan, Poland and was on an Exchange
Sokrates/ERSAMUS scholarship at Louis Pasteur University in Strasbourg
(ECPM), France
In my spare time I enjoy travelling, photography and reading. I also like to
experiment in the kitchen, probably because I am a chemist.
Dr. Anna Jarosik Industry Analyst
Frost & Sullivan
Central and Eastern Europe
Warsaw, Poland
About Anna
3
Current EOR Chemicals Market Trends
End-user Focus
It is crucial for chemical manufacturers to offer customised enhanced oil
recovery chemicals and technological solutions that in general depend on the
specific environmental conditions related to crude oil extraction. EOR
chemicals facilitates the functioning of equipment and significantly improve oil
extraction.
Expansion
Strategies
Multinational companies such as SNF s. a. s., TIORCO, Kemira, The Dow
Chemical company and Shell Chemicals are focusing on regions that have
mature oil fields and at the same time regions attractive for EOR chemicals.
They’ll try to expand their businesses by looking for end-users who would use
chemical solutions.
Improved
Chemicals
Performance
By investing in innovative, advanced and highly effective EOR chemicals whilst
maintaining high environmental and quality standards EOR chemicals are
crucial for enhancing the crude oil extraction efficiency. There is also a trend to
offer bio-based chemicals, for example bio-polymers that are bio-degradable
and more environment friendly.
Supply Chain
Management
The key EOR chemicals manufacturers are aware of the importance of supply
chain management and professional, technical and after-sales support.
Manufacturers offering basic chemicals are engaging in partnerships with
chemical distributors. Manufacturers of advanced EOR chemicals tend to
create closer partnerships with oil producers or/and engineering companies
that provide EOR technology. Source: Frost & Sullivan analysis
4
Four Big Predictions for 2019
2 Rising oil prices, ageing oil fields, rapidly escalating global energy demands, and a
desire to increase energy independence are likely to drive developments and
improvements in EOR chemicals.
3 EOR chemicals and advanced crude oil extraction technologies based on chemical
injection are expected to tap more oil from the rapidly maturing reserves.
1 The current increase in crude oil production is expected to create a need for various
enhanced oil recovery technologies, including the chemicals injection method.
4 The specialty oilfield chemicals, including EOR chemicals are expected to undergo
continuous technological improvements in spite of rising prices in energy and
decelerating global oilfield activity.
Source: Frost & Sullivan analysis
5
EOR Chemicals Demand
46.5%
16.4%
0.5%
17.8%
15.8% 2.9%
Polymers Surfactants
Alkali Chemicals Surfactant-Polymer Formulations
Alkali-Surfactant-Polymer Formulations Other Chemicals*
58.5%
12.3%
0.3%
10.4%
16.1% 2.4%
Polymers Surfactants
Alkali Chemicals Surfactant-Polymer Formulations
Alkali-Surfactant-Polymer Formulations Other Chemicals*
Total Enhanced Oil Recovery Chemicals Market:
Segmentation by Chemicals, The United States and Europe
2012 2019
Key: *Other chemicals segment include cleaning
agents, demulsifiers, hydrate inhibitors. Note: All figures are rounded. The base year is 2012.
Source: Frost & Sullivan analysis
6
Growth Opportunities Matrix for EOR Chemicals
Note: All figures are rounded. The base year is 2012.
Source: Frost & Sullivan analysis
CA
GR
, 2
01
2–2019
Surfactants
Revenue in 2019 ($ Million)
Other
Chemicals*
Surfactant–Polymer
Formulations
> 2% loss 2% loss – 5% gain > 5% gain Unknown
Profitability
Polymers
Alkali
Chemicals
Alkali-Surfactant-Polymer
Formulations
Key: *Other chemicals segment include cleaning
agents, demulsifiers, hydrate inhibitors.
Polymers as well as formulations containing alkali chemicals, surfactants
and polymers as highly effective chemicals present the largest
opportunities as EOR chemicals.
7
EOR Chemicals Market Situation
Segment Total Market
Share
Segment
Stage Key Chemicals
Key Market
Participants CAGR (2012-
2019)
Polymers 46.5 % Growth HPAM
Bio-polymers
Associating polymers
SNF s.a.s.
Kemira
BASF
Ashland
27.4 %
Surfactants 16.4 % Growth
Petroleum-based
Synthetic
Bio-surfactants
Co-surfactants/co-
solvents
Huntsman
Shell Chemicals
Dow
BASF
Rhodia
18.4 %
Alkaline
Chemicals 0.5 % Growth
Hydroxides
Silicates
Carbonates
Dow
Solvay Chemicals
FMC Co.
Akzo Novel N.V.
16.2 %
Surfactant-
Polymer
Formulations 17.8 % Growth
Anionic
surfactants/HPAM
Anionic
surfactants/PS
TIORCO
Dow
Akzo Nobel N.V.
VeruTEC®
14.2 %
Alkali-Surfactant-
Polymer
Formulations 15.8 % Growth
Carbonates/Anionic
surfactants/HPAM
Hydroxides-Anionic
surfactants/HPAM
TIORCO
Shell Chemicals
Dow
Schlumberger
23.6 %
Key: HPAM stands for hydrolized polyacrylamide; PS stands for polysaccharides (bio-surfactant) Note: All figures are rounded. The base year is 2012.
Source: Frost & Sullivan analysis
8
Regional Trends in EOR Chemicals Market
The U.S.
Europe
Year The United
States Nordic
Countries
The United Kingdom
Balkan Countries
The Rest of Europe*
($ million)
2012 261.9 78.6 36.0 12.3 20.5
2019 1,132.5 326.6 156.2 74.6 85.2
CAGR (2012-
2019) 23.3 % 22.6 % 23.3 % 29.4 % 22.6 %
Key: *Rest of Europe includes Austria, Baltic countries, Benelux countries, Czech and Slovak Republic, France,
Germany, Hungary, Ireland, Iberian countries, Italy, Poland and Switzerland.
Note: All figures are rounded. The base year is 2012.
Source: Frost & Sullivan analysis
9
The CEO’s Perspective
2 The need for innovative, sustainable, and
economically viable EOR chemicals is
expected to drive the market.
3
EOR chemical manufacturers are focusing
on providing advantages such as improved
extraction efficiency, cost reduction, better
regulatory compliance and multi-application
capabilities
4
Close and active partnerships with key oil
producers as well as EOR technology
providers offer better opportunities for EOR
chemicals.
1
Rapid depletion and ageing of crude oil
reserves are expected to strongly determine
the EOR chemicals market’s development,
leading to continued growth.
Source: Frost & Sullivan analysis
10
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Anna Jarosik
Industry Analyst
Chemicals, Materials and Food
(+48) 22 481 6236
Leonidas Dokos
Research Manager
Chemicals, Materials and Food
(+44) 186 539 8685
Chiara Carella
Corporate Communications
Energy & Environment
(+44) 207 343 8314
