Surfactant EOR Market - Forecast(2024 - 2030)

The Surfactant EOR market size is estimated to reach US$90.8 million by 2030, after growing at a CAGR of 3.2% during the forecast period 2024 - 2030. Surfactant enhanced oil recovery is utilized for wettability alteration of porous rocks permitting water to flow through them faster displacing more oil. The growing oil & gas sector is driving the surfactant EOR market growth, for increasing oil production by raising oil mobility and permitting good displacement of the oil by the administered water, by utilizing the surfactant flooding technique. Moreover, the increasing requirement for bio-based and petro-based surfactants in the onshore and offshore fields, to increase the recovery of hydrocarbons, as a mobilizing agent is anticipated to upsurge the growth of the surfactant EOR industry during the forecast period.

The Surfactant EOR market is witnessing continuous technological advancements aimed at enhancing the efficiency and effectiveness of surfactant-based EOR processes. These advancements include the development of novel surfactant formulations with improved performance characteristics, such as higher stability, lower interfacial tension, and better reservoir compatibility. Additionally, advancements in application techniques, reservoir characterization, and reservoir simulation software contribute to optimizing surfactant EOR projects, leading to increased oil recovery rates and improved economic viability.

There is a growing emphasis on environmental sustainability in the oil and gas industry, driving the adoption of surfactant EOR as an environmentally friendly method for increasing oil recovery from mature reservoirs. Surfactant EOR offers advantages such as reduced water usage, minimized waste production, and lower carbon emissions compared to traditional EOR methods like steam injection or water flooding. As environmental regulations tighten and stakeholders demand greener practices, the Surfactant EOR market is expected to continue growing due to its alignment with sustainability objectives.

The COVID-19 pandemic had a significant impact on the Surfactant Enhanced Oil Recovery (EOR) market. Lockdown measures and restrictions on movement disrupted oil production activities worldwide, leading to reduced demand for EOR solutions. Many oil companies faced budget constraints and deferred or canceled EOR projects to prioritize cost-saving measures. Supply chain disruptions also affected the availability of surfactants and other chemicals required for EOR operations, causing delays and increasing costs. Additionally, the decline in oil prices resulting from decreased demand further dampened investment in EOR projects. 

However, as the global economy gradually recovered and oil prices stabilized, the Surfactant EOR market is rebounded, driven by the need for efficient oil recovery methods to maximize production from existing reservoirs and meet energy demands.

The “Surfactant EOR Market Report – Forecast (2024 - 2030)” by IndustryARC, covers an in-depth analysis of the following segments in the surfactant EOR industry.

By Origin: Surfactants and Biosurfactants.

By Technique: Polymer Flooding (PF), Surfactant-Polymer (SP) Flooding, Alkali-Surfactant-Polymer (ASP) Flooding, Alkali-Co-solvent-Polymer (ACP) Flooding and Low-Tension Gas Flooding (LTG).

By Type: Alkyl Polyglycoside, Coconut Diethanolamide, Di-Tridecyl Sulfosuccinic Acid Ester and Alkylpropoxy Sulfate Sodium Salts.

By Surfactant Type: Anionic surfactants, Cationic surfactants and Non-ionic surfactants.

By Category: Petro-based and Bio-based.

By Application: Onshore and Offshore.

By Geography: North America (USA, Canada and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Belgium and the Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile and Rest of South America), Rest of the World (the Middle East and Africa).

• The North-America region dominates the Surfactant EOR market owing to the increasing investments in the oil & gas sector. 

• Rapidly rising demand for Surfactant EOR in the oil & gas industry for increasing oil production by reducing interfacial tension and raising oil mobility has driven the growth of the surfactant EOR market.

• The rising importance of bio-based surfactants has been a critical factor driving the growth of the surfactant EOR market in the upcoming years.

• However, the high adoption of renewable energy can hinder the growth of the surfactant EOR market.

The petro-based segment held the largest Surfactant EOR market share in 2023 and is projected to grow at a CAGR of 3.5% during the forecast period 2024-2030. The petroleum industry utilizes large volumes of petro-based synthetic surfactants to increase the availability or recovery of hydrocarbons and for several purposes such as cleaning, extraction, treatment and transportation, as a mobilizing agent. Petro-based synthetically manufactured surfactants are extensively utilized in the surfactant EOR market as compared to bio-based surfactants due to their relatively high cost and also, the bio-based surfactants are weaker than petro-based synthetic surfactants. Thus, all these exhibit characteristics of petro-based surfactants make it a preferred choice over the bio-based surfactants for EOR that are driving its segmental growth.

The onshore segment held the largest Surfactant EOR Market share in 2023 and is estimated to grow at a CAGR of 3.8% during the forecast period 2024-2030. Surfactants are extensively used to recover a large quantity of oil & gas from onshore reservoirs by utilizing the surfactant flooding technique as compared to offshore reserves. Therefore, onshore is the biggest application in the Surfactants enhanced oil recovery market. In onshore drilling facilities, the wells are grouped together in a field and are connected by carbon steel tubes which deliver the oil and gas to a manufacturing and processing facility. Furthermore, onshore production companies are able to turn on and off rigs with more ease than offshore rigs. The oil and gas industry is growing, for instance, in 2022, India's top oil and gas producer ONGC invested Rs 31,000 crore (US$3,898 million), in exploring the Indian sedimentary basin for fuel reserves, over the next three years. Thus, with the rising oil & gas sector, the onshore segment is growing, which is driving the surfactant EOR market growth over the forecast period.

North-America region held the significant Surfactant EOR market share in 2023 up to 28%, due to the rising oil and gas exploration and production activities. The rising growth of the oil & gas industry has uplifted the growth of the surfactant EOR market since it is extensively being utilized for wettability alteration of porous rocks in industries such as exploration and development, chemical and refining. Moreover, the oil & gas industry is growing, for instance, according to the International Trade Administration, in Mexico, from 2021 to 2024, companies such as ExxonMobil and Fieldwood will invest US$18 billion, in order to purchase drilling, exploration and seismic services and extraction equipment, involving platforms and related services for 794 wells. Moreover, according to the Canadian Association of Petroleum Producers (CAPP), in 2021, capital investments were about US$3.36 billion higher as projected and there was a 14% increase in upstream oil & gas investment, rising up to US$39 billion, in 2023, in comparison to US$33 billion in 2022. Thus, the increasing investments in the oil & gas industry are proving to be a market booster for the surfactant EOR market size in this region.

The oil and gas industry uses surfactant-enhanced oil recovery for increasing oil production by reducing interfacial tension, for wettability alteration of porous, rocks and raising oil mobility, therefore permitting good displacement of the oil by the administered water, by using the surfactant flooding technique. The oil & gas industry is growing, for instance, according to the U.S. Energy Information Administration, the production of crude oil in the USA has reached 13.21 million barrels per day in 2023 from 11.91 million barrels per day in 2022. Thus, the increasing investments and production of oil and gas will drive the demand for the surfactant EOR market during the forecast period.

The increasing importance of eco-friendly bio-surfactants is boosting the demand for the surfactant EOR. Bio-surfactants are proven to reduce petroleum hydrocarbon pollution. The growing concern about environmental issues increases the demand for bio-based surfactants. According to Swansea University, they developed green surfactants for better oil recovery and considered the need for low-impact oil recovery solutions. Also, the rising demand for more efficient oil recovery techniques and surfactant EOR's increasing popularity boosts the surfactant EOR industry. The bio-based surfactants sector is growing, for instance, in 2022, Solvay launched a new range of low carbon footprint bio-surfactants. Thus, the rising importance of bio-based surfactants will drive the demand for the surfactant EOR market during the forecast period.

There is a global shift towards renewable green energy, which has resulted in a reduction in oil consumption. This reduction has caused a decrease in oil consumption as well as a decline in oil and gas production, processing and drilling activities, reducing the demand for enhanced oil recovery techniques. Moreover, the shift toward electric vehicles in the developed and under-developed countries is hampering the growth of the existing internal combustion engine vehicles and also hinders the chemical-enhanced oil recovery market over the anticipated timeframe. Thus, the high adoption of renewable energy will create hurdles for market growth in the forecast period.

Technology launches, acquisitions and R&D activities are key strategies players adopt in the surfactant EOR markets. The key companies in the surfactant EOR market are:

1. BASF SE

2. The DOW Chemical Company

3. Halliburton Company

4. Chevron

5. Schlumberger Inc.

6. Huntsman Corporation

7. Lubrizol Corporation

8. Sasol Ltd.

9. Shell Chemicals

10. Solvay S.A. 

• In January 2022, Evonik expanded a new production plant for bio-based and fully biodegradable rhamnolipids. Rhamnolipids are biosurfactants and act as an active ingredient, to serve the growing demand for environmentally friendly surfactants.

• In May 2022, the state-owned Oil and Natural Gas Corporation (ONGC) awarded contracts for two polymer flooding-based Enhanced Oil Recovery (EOR) projects on separate properties in India. SNF Flopam secured a contract from ONGC's Ahmedabad asset in December 2021 for the provision of alkali surfactant polymer and injection services at Jhalora field. Furthermore, SNF Flopam obtained a similar contract from ONGC's Mehsana asset in March 2022 for the Bechraji field.

• In July 2023, Bolivia's state hydrocarbons company YPFB opted to initiate the second phase of its Enhanced Oil Recovery (EOR) program.