India PAM for C-EOR Market – By Type , By Technique , By Use Case , By Form , By Molecular weight , By Application - Opportunity Analysis & Industry Forecast, 2024-2030

India PAM for C-EOR Market Overview:

India PAM for C-EOR Market size is estimated to reach US$152.8 million by 2030, growing at a CAGR of 5.4% during the forecast period 2024-2030. Polyacrylamide (PAM) is a crucial chemical agent in Chemical Enhanced Oil Recovery (C-EOR) processes, offering enhanced oil displacement efficiency by improving the viscosity of injected water, reducing water permeability, and improving sweep efficiency. Government policies, high dependency on oil & gas and high energy demand is driving the demand for India PAM for C-EOR from the end users.With declining production rates in mature oil fields, there is a growing trend towards adopting CEOR techniques. PAM plays a crucial role in these techniques by improving oil recovery rates and enhancing overall efficiency. Indian companies are increasingly forming strategic partnerships and collaborations with international firms and research institutions to leverage advanced CEOR technologies and expertise. These factors positively influence the India PAM for C-EOR industry outlook during the forecast period.

Market Snapshot: 

India PAM for C-EOR Market - Report Coverage:

The “India PAM for C-EOR Market Report - Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the India PAM for C-EOR Market.

 COVID-19 / Ukraine Crisis - Impact Analysis:  

• When the COVID-19 pandemic hit, the Oil & Gas and other industries scaled back production and many were shut down due to lockdowns. For the first time in history, oil prices were negative. The WTI (West Texas Intermediate) futures fell by over 300% to trade at minus US$39 per barrel 20 April 2020. The Indian counterpart, MCX, accordingly had to settle the price at just INR 1 per barrel due to the unusual volatility in the international markets. As a result, EOR activity stopped as it wasn’t viable.
• In 2021-2022, India imported over $116 billion of crude oil, as per the Directorate General of Hydrocarbons. Following Russia’s invasion of Ukraine in February 2022, India’s energy systems were under stress owing to western sanctions against Russia. The state owned ONGC, having a stake in Russian oil fields, also faced challenges of transporting and trading its equity oil. India being deficient in oil and gas is finding it hard to cope with the rising prices of oil. This high price however benefits the CEOR market in India 

Key Takeaways:

• Polymer Flooding to Grow the Fastest

In the India PAM for C-EOR Market analysis, the polymer flooding is the largest segment by type and is estimated to grow with the fastest CAGR during the forecast period 2024-2030. In polymer flooding, water viscosity is enhanced using polymers like PAM. This allows the injected water to reach previously bypassed zones within the reservoir, leading to a more effective sweep and ultimately maximizing oil production. According to a World Oil article published in May 2022, in India, five polymer flooding projects are being executed including ONGC’s North Kadi field and Cairn’s Barmer field.

• Polymer Flooding Technique is the Largest Segment in the Market

According to the India PAM for C-EOR Market forecast, the polymer flooding technique held the largest market share in 2023. Polymer flooding is a chemical EOR technique that involves injection of polymer solution in the reservoir to reduce adverse mobility ratio of water to oil and improve the recovery of oil. In December 2023, ONGC announced that India’s maiden commercial Polymer flood EOR in heavy oil at Bechraji field got a green light with 50% cess benefit under the Union Government’s Enhanced Recovery Incentive Policy. Polymer flooding started at ONGC’s Bechraji field in the Mehsana asset of Gujarat state. The scheme consists of 11 injection wells for polymer flooding.

• Rising Energy Demand

Economic growth is one of the biggest factors affecting petroleum products, and therefore crude oil demand. In growing economies like India this translates to a higher demand for energy. According to the International Energy Agency (IEA), India's oil demand is projected to rise from 5.4 million barrels per day (bpd) in 2023 to 6.7 million bpd by 2030, a growth of 3.2% or 1.3 million bpd, as per its Oil 2024 Report. As conventional oil reserves get depleted, there is a growing need to extract oil from mature reservoirs that were previously considered uneconomical using traditional methods. As the demand for crude oil continues to rise, the importance of EOR technologies, including PAM in chemical EOR, is expected to grow, driving further innovation and advancements in the field. 

• Favorable Government Policies

In 2018, the Union Cabinet approved the policy framework to promote and incentivize Enhanced Recovery (ER)/ Improved Recovery (IR)/ Unconventional Hydrocarbon (UHC) production. secondary recovery. The objective of the ER Policy is to encourage and incentivize additional investments toward the adoption of enhanced recovery techniques through fiscal waivers to increase domestic hydrocarbon production. The Policy envisages systemic assessment of every field for its ER potential, appraisal of appropriate ER techniques and fiscal incentives to de-risk the cost involved in ER projects to make the investment financially viable. An increase by 5% in recovery rate of original in-place volume in oil production is envisaged producing 120 MMT of additional oil in next 20 years. Thus, favorable government policy drives the India PAM for C-EOR market.

• Volatile Raw Material Prices to Impede to Market growth

A major challenge for the India polyacrylamide for chemical enhanced oil recovery market is the volatile raw material prices. The main raw materials needed for polyacrylamide production include acrylamide and acrylonitrile, derived from crude oil. The price of acrylamide is significantly influenced by the cost of its main raw material, acrylonitrile. The price of acrylamide is primarily influenced by the cost of its main raw material, acrylonitrile, which is also utilized in the production of ABS polymers and acrylic fibers. According to company reports from Black Rose Industries, the Indian acrylonitrile market faced challenges due to high-priced raw material inventories which impacted profit margins. Additionally, fluctuations in supply and demand, both domestically and internationally, exacerbated the situation. As per Black Rose Industries, acrylamide solid is imported from China by various chemical traders and end users, due to the demand, with import duties of 7.5% applicable to this material. Thus, the prices of acrylonitrile and acrylamide affect PAM price in India.

India PAM for C-EOR Market Revenue, 2023-2030

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Key Market Players: 

Product/Service launches, approvals, patents and events, acquisitions, partnerships and collaborations are key strategies adopted by players in the India PAM for C-EOR Market. The top 10 companies in this industry are listed below:

1. SNF
2. BASF SE
3. Solenis LLC
4. Sterling Specialty Chemicals
5. Beijing Hengju Chemical Group Co., Ltd.
6. Anhui Jucheng Fine Chemicals
7. Anhui Tianrun Chemicals
8. Shandong Nuoer Biological Technology Co. Ltd
9. ZL EOR Chemicals
10. Xitao Polymer Co.

Scope of Report: 

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