Saudi Arabia Enhanced Oil Recovery Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Saudi Arabia Enhanced Oil Recovery Market Size

Saudi Arabia Enhanced Oil Recovery Market Trends & Growth Drivers

Emergence of Hybrid EOR Is Key Trend

• E&P companies are trying to advance EOR techniques via a hybrid approach.
• To maximize oil recovery while taking into account the particular qualities of certain reservoirs, there is a shift toward hybrid EOR, which combines and integrates several EOR processes.
• This trend has started gaining popularity in the kingdom’s oil and gas industry because it offers advantages over applying a single EOR method, such as combinations of various mechanisms, addressing reservoir heterogeneity, optimizing recovery factors, and offering flexibility and adaptability.

Presence of Heavy Oil in Saudi Arabia Is Biggest Driver

• Heavy oil presents special difficulties due to its high viscosity and density, which make it challenging to be extracted using standard production techniques.
• Due to the substantial amounts of heavy oil found in Saudi Arabia's reservoirs, which encourage the adoption and development of EOR techniques, particularly thermal recovery methods, the Saudi Arabian market for EOR is expected to rise.
• By using thermal EOR techniques to address the problems in heavy oil reservoirs, Saudi Arabia aims to maximize overall oil production, hold on to its position as the world's top hydrocarbon producer, and extend the life of its oilfields.

High Operational Costs Pose Challenge

• Putting the EOR procedures into practice comes with a substantial operational cost burden, which can be a major obstacle to their widespread adoption and financial feasibility.
• Several key factors contribute to the high operational costs, such as capital-intensive infrastructure and expensive chemicals.
• EOR infrastructure needs large upfront investments to set up the equipment, as well as to employ chemicals, such as alkaline, surfactant injections, and flooding polymers, which are expensive when used in large quantities.
• Additionally, the cost of energy, water management, drilling and well interventions, monitoring and surveillance, and specialized expertise also negatively affect the affordability of EOR techniques.

Saudi Arabia Enhanced Oil Recovery Market Analysis

Technique Insights

• The thermal EOR category dominates the market by contributing 45% market revenue in 2024, and it is expected to witness a CAGR of 7.7% in the forecast period.
• This is due to the thermal EOR technique's proven efficacy in enhancing oil recovery from Saudi Arabia's mature reservoirs.
• The thermal approach can also lower oil velocity, which makes it easier to replace oil and improves reservoir fluid mobility.
• The thermal technology is also strong enough to adapt to the many geological formations in this country, which adds to their continued significance.

The techniques covered in the report include:

• Thermal (Largest and Fastest-Growing Category)
  • Steam
  • Hot water
• Gas
  • CO2
  • Natural gas
  • Nitrogen
• Chemical
  • Polymer
  • Surfactant
  • Alkaline

Application Insights

• The offshore category dominates the market by contributing 60% market revenue in 2024.
• This expansion is driven by the kingdom’s strategic emphasis on optimizing the recovery from its vast offshore reserves.
• Saudi Arabia focuses on increasing the output from its major offshore oil resources, and the utilization of its EOR techniques, particularly in offshore reservoirs, creates huge prospects for raising production rates.

The following applications are included in the report:

• Onshore (Faster-Growing Category)
• Offshore (Larger Category)

Regional Analysis

Eastern Region Is the Largest and Fastest-Growing Province

• The Eastern region will acquire the largest market share, of 40%, in 2024, and become the fastest-growing market, with a CAGR of 7.9%, in the forecast period. This is because the eastern region of the kingdom is home to its principal oil and gas fields and operations.
• Saudi Arabia holds approximately 17% of the world’s petroleum reserves.
• The eastern region has numerous established oil fields, which have produced oil for many years, including Ghawar, Safaniya, Zuluf, and Marjan. The use of the EOR method in these fields is essential for revitalizing production and extending the lifespan of the wells.
• Additionally, this province contains significant heavy oil reservoirs, especially in the Safaniya and Manifa fields. This presents production challenges; therefore, companies use EOR techniques to reduce the oil's viscosity.
• This province is also the hub of Saudi Arabia’s carbon capture and storage (CCS) initiatives, which can be closely tied to EOR operations. Industrial sources' collected carbon can be used in EOR projects as it allows for the reduction of the greenhouse gas emissions reaching the air, as well as improvements in oil recovery.

The provinces analyzed in this report include:

• Al-Riyadh
• Makkah
• Al-Madinah
• Al-Qaseem
• Eastern Region (Largest and Fastest-Growing Province)
• Aseer
• Tabouk
• Hayel
• Northern Border
• Jazan
• Najran
• Al-Baha
• Al-Jouf

Saudi Arabia Enhanced Oil Recovery Market Share

Market Concentration – Consolidated

The Saudi Arabian enhanced oil recovery market is consolidated in nature due to the presence of a few key players, such as Halliburton Company, Schlumberger Limited, Saudi Arabian Oil Co. (Saudi Aramco), BP International Limited, and ExxonMobil Corporation. These companies established their presence in the kingdom by partnering with limited local companies for specific EOR projects. Additionally, they invest heavily in R&D to introduce advanced EOR technologies. They also provide specialized services, equipment, and technologies for EOR operations in Saudi Arabia.