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

PAM for C-EOR Market Overview:

PAM for C-EOR Market size is estimated to reach US$1.3 billion by 2030, growing at a CAGR of 5.2% 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. The growth in the number of mature oil fields, high energy demand and growing oil demand is driving the demand for PAM for C-EOR from the end users. 

Synergy with other EOR techniques is a trend in the market. PAM can be combined with other EOR techniques such as microbial enhanced oil recovery, for potentially even greater oil recovery improvements. This trend is expected to boost the growth of the PAM for C-EOR Market during the forecast period. Another growing trend is using PAM specifically formulated for low-salinity waterflooding, a technique gaining traction for its effectiveness in certain reservoirs.  These factors positively influence the PAM for C-EOR industry outlook during the forecast period.

Market Snapshot: 

PAM for C-EOR Market - Report Coverage:

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

 COVID-19 / Ukraine Crisis - Impact Analysis:  

• When the COVID-19 pandemic hit, many industries like Chemical, Oil & Gas and other industries scaled back production and many were shut down due to lockdowns. Dropping oil prices also meant that EOR wasn’t a viable option. For instance, the West Texas Intermediate (WTI) crude oil price registered a low of $22.39 per barrel March 20, 2020, less than half the price at the beginning of the month. In early 2020, investing huge capital for EOR projects took a backseat for a while, as industries struggled to make profits.
• Until the end of 2021, Russia was a major supplier of oil and gas. Following Russia’s invasion of Ukraine in February 2022, imports from Russia decreased substantially due to sanctions and the war’s influence on trade and infrastructure. Higher oil prices incentivized increased oil production, driving the demand for PAM in C-EOR. However, PAM production costs have risen due to sanctions. For instance, in August 2022, Solenis announced that it would implement an energy surcharge on all products and product lines of up to 20% on all orders for all customers across Europe, the Middle East, and Africa (EMEA). Due to the limited availability of gas from Russia the company experienced high costs at its manufacturing plants in addition to price escalations in key raw materials.

Key Takeaways:

• Dominance of Asia-Pacific Region

Geographically, in the PAM for C-EOR market share, the Asia-Pacific region has the highest market share of more than 68% in 2023. The International Energy Agency (IEA) forecasts that the APAC region will account for over half of global energy demand growth by 2040. Conventional oil and gas exploration and production methods have played a vital role in meeting the region's energy needs.  However, as readily accessible reserves are depleted, traditional approaches are reaching their limitations. PAM C-EOR offers a cost-effective and environmentally friendly solution to enhance oil recovery from mature fields in the APAC region. In January 2022, India’s stated owned Oil & Natural Gas Corporation Limited (ONGC) awarded a $6.5 million contract to SNF to establish a surface facility for injecting alkali surfactant polymer (ASP) at Jhalora oil field. Compared to some alternative EOR methods, PAM C-EOR is a relatively cost-effective solution, making it an attractive option for operators. Thus, the high energy demand in APAC drives the demand for PAM in C-EOR Market.

• Polymer Flooding to Grow the Fastest

In the PAM for C-EOR Market analysis, the polymer flooding is the largest segment by type and is estimated to grow with a CAGR of 6.3% during the forecast period 2024-2030. Thus, polymer flooding is expected to dominate the PAM for C-EOR market. Polyacrylamide (PAM) is a synthetic polymer of long-chain acrylamide subunits, high molecular weight (1000 to 20 × 106 g/mol), and a wide range degree of hydrolysis. 90% of polymer flooding utilize partially hydrolyzed polyacrylamide (HPAM), according to the Norwegian Offshore Directorate. HPAM is the most widely used polymer for field application of polymer floods because it can tolerate high mechanical forces present when flooding a reservoir. HPAM’s long-term stability increases its success in field application and improves oil recovery by up to 45%.

• Polymer Flooding Technique is the Largest Segment in the Market

According to the PAM for C-EOR Market forecast, the polymer flooding technique held the largest market share of 47% in 2023. Polymer flooding involves injecting polymers into reservoirs to improve water viscosity, enhancing oil recovery. Polymer flooding is the most commonly applied chemical enhanced oil recovery method (CEOR) globally. This is primarily due to its low cost compared to other CEOR methods such as surfactant flooding. Polymer flooding has been successfully implemented in many oilfields either on a pilot scale or commercial scale for several decades. The Daqing oilfield in China, East Bodo Reservoir and Pelican Lake field in Canada, Marmul field in Oman and Tambaredjo field in Suriname are some notable examples. The most notable contribution is the reported incremental oil production of up to 300,000 bbl/day from Daqing oil field in China. Thus, polymer flooding is expected to dominate the PAM for C-EOR market.

• Rising Energy Demand

Economic growth is one of the biggest factors affecting petroleum products, and therefore crude oil, demand. Growing economies mean a higher demand for energy. Petroleum products made from crude oil and other hydrocarbon liquids account for about one-third of total world energy consumption, as per the U.S. Energy Information Administration. According to the Organization of the Petroleum Exporting Countries (OPEC) bloc’s forecast for demand growth for 2024 and 2025, world oil demand will rise by 2.25 million barrels per day (bpd) in 2024 and by 1.85 million bpd in 2025, as per March 2024 monthly report. As conventional oil reserves are being 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, particularly in regions with maturing oil fields, the importance of EOR technologies, including PAM in chemical EOR, is expected to grow, driving further innovation and advancements in the field. 

• Rise in the Number of Mature Oil Fields

An oil field can be considered as mature when its production rate has significantly declined and/or when it is close to reaching its economic limit. A field might also be considered mature when it has been in production for many years and has depleted its primary and secondary recovery. However, far from being diminishing assets, these mature fields offer an important opportunity to extract further oil and gas resources to meet future energy demands. 

According to Baker Hughes 2024 Annual Meeting, 70% of all oil and gas production comes from mature fields. The cost of producing oil from mature assets is around $10 a barrel, in comparison with a new-field barrel that can cost much more. Operators are actively exploring and implementing various strategies to mitigate the effects of declining production in mature fields.  Techniques like polymer flooding can significantly increase oil recovery rates from mature fields by improving sweep efficiency and maximizing the amount of recoverable oil. Thus, the increase in the number of mature oil fields drives the PAM for C-EOR market.

• Volatile Raw Material Prices to Impede to Market growth

A major challenge for the polyacrylamide for chemical enhanced oil recovery market is the volatile raw material prices. The main raw materials needed for polyacrylamide production include acrylic acid and acrylonitrile, derived from crude oil. In March 2021, Solenis announced that it would increase prices by 10 to 15% on all polyacrylamide polymers across the EMEA region, effective immediately due to the major impact on key feedstock costs and raw material shortages. According to the company, several Force Majeure situations at major acrylonitrile producers in EMEA and North America caused a shortage in product availability. Rising prices of crude oil are likely to increase the prices of raw materials in the industry contributing to upward trends in polyacrylamide price trends during the forecast period. 

PAM for C-EOR Market Share (%) By Region, 2023
 

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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 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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