Microbial Enhanced Oil Recovery Market Trends
Growth Drivers
- Growing Demand for Crude Oil and Oil Products – Crude oil has been on a constant rise owing to its usage in various end-use industries such as transportation, automotive, energy, petrochemical, plastics, and many others. As crude oil is obtained through the drilling processes, the growing need for crude oil is expected to increase the utilization rate of microbial enhanced oil recovery (MEOR) for optimum results in drilling process. As per the latest data available, the daily demand for crude oil across the world increased from 90 million barrels per day in 2020 to 100 million barrels per day in 2022. This figure is supposed to further increase and reach 105 barrels per day in 2026.
- The Rise in Oil Exploration & Production Activities – In the recent period, the government of different nations has been focusing on increasing the number of oil exploration and production activities to meet the global demand for oil and oil products. With the increase in the number of oil exploration projects, the demand for microbial enhanced oil recovery (MEOR) is also anticipated to rise which in turn, is projected to aid in the expansion of the global microbial enhanced oil recovery (MEOR) market during the analysis period. For instance, global oil production was calculated to be around 90 million barrels per day across the world which is further anticipated to increase to approximately 150 million barrels per day by 2033.
- Constant Support by Various Governments – By 2024, the Indian government is planning to invest around USD 120 billion in the oil and gas industry. Out of these USD 120 billion, USD 60 billion is expected to direct towards exploration and production (E&P) activities, and the rest USD 60 billion in natural gas infrastructure.
- High Expenditure in Research & Development – World Bank released the global expenditure made in the Research & Development (R&D) sector which showed that in 2020 it was 2.63% of the total GDP. This is an increase from year 2.14% of the total GDP in 2016.
Challenges
- High Cost of Procedure – The process of microbial enhanced oil recovery is the utilization of bacteria and their by-products for increased mobility of oil from the reservoirs. This process requires a lot of investment. This factor is anticipated to hamper market growth during the forecast period.
- Increased Risks During the Drilling Processes
- Fluctuation in the Price of Crude Oil and End Products
Microbial Enhanced Oil Recovery (MEOR) Market: Key Insights
In 2019, the world’s total energy supply was 606EJ, wherein the highest share in terms of source was captured by oil, accounting for 30.9%, followed by coal (26.8%), natural gas (23.2%), biofuels and waste (9.4%), nuclear (5.0%), hydro (2.5%), and other (2.2%). Where there was an increase in energy demand in 2018, the year 2019 witnessed slow growth as the energy efficiency improved owing to decline in the demand for cooling and heating. However, in 2020, the electricity demand decreased by 1% due to the outbreak of Coronavirus resulting in government-imposed shutdowns in order to limit the spread of the virus, which was further followed by shutdown of numerous business operations impacting their growth. This also resulted in decline of 5.8% in the worldwide CO2 emissions which was recorded to be five times larger than the one recorded during the global financial crisis in 2009. However, in 2021, the demand for oil, gas and coal is estimated to witness growth, which is further projected to create opportunities for market growth. Moreover, rising environment degradation and awareness related to climate change is motivating many key players to employ sustainable energy strategies and invest significantly in environment-friendly power generation technologies with an aim to promote sustainable development among various nations around the world. Such factors are anticipated to promote the growth of the market in upcoming years.
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
19.8% |
|
Base Year Market Size (2024) |
USD 143.64 million |
|
Forecast Year Market Size (2037) |
USD 1.5 billion |
|
Regional Scope |
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