Transparency Market Research has released a new market report titled “CO2 EOR Market – Permian Basin Industry Analysis, Size, Share, Growth, Trends and Forecast 2013 – 2019.” According to the report, the CO2 EOR market in the Permian Basin accounted for 195,000 barrels per day in 2012 and is anticipated to reach 329,069 barrels per day in 2019, expanding at a CAGR of 7.0% from 2013 to 2019.
CO2 enhanced oil recovery technology has been proved as the most viable and commercially profitable in the U.S. Permian Basin region based in West Texas has experienced the development and expansion of the CO2 EOR market with growing number of project with large capacity addition to the existing fields. Permian Basin is creating the demand for low cost and highly pure CO2 sourced from natural CO2 reservoirs; however, the trend is expected to change in the near future with emergence of new industrial CO2 capture and storage projects. Therefore, an extensive CO2 supply pipeline network has been developed in this region. This extensive network helps to meet the upward CO2 demand from CO2 EOR sub-industry.
Out of all the three major methods of enhanced oil recovery (EOR) namely, thermal, gas/CO2 and chemical; gas/CO2 method has been growing at a quick pace In the Permian Basin. It utilizes carbon dioxide as an injectant gas to stimulate the extraction of crude oil. CO2 as an injectant provides numerous advantages over other EOR techniques as it has neutral behavior and doesn’t affect the chemical composition and quality of crude oil. Thus, development of large CO2 stations in the Permian Basin region has been driven by the EOR demand; however, being driven by the CO2 EOR market, the Permian Basin CO market is now driving the growth of the CO2 EOR.
Strong supportive regulatory framework in the Permian Basin CO2 EOR market is also drives the development of CO2 supply sources and thus the CO2 EOR market in the Permian Basin. The state and local government norms not only provide tax concession but also provide some incentives for carbon capture and storage. Permian Basin CO2 EOR market has dominated the global CO2 EOR market in terms of oil production as well as number of projects. There is presence of over 127 CO2 EOR projects which accounts for more than half of the global CO2 EOR market.
Permian Basin’s high amount of oil in place creates a huge opportunity for the upcoming EOR projects. Major players or operators in the Permian Basin are involved in the development strategies such as acquisition in order to penetrate the market and expand the production capacities. Major operators involved in the production of oil from the Permian Basin CO2 EOR fields are Chevron Corporation, ConocoPhillips Co., ExxonMobil Corporation, Hess Corporation, Kinder Morgan, Inc., Occidental Petroleum Corporation and Whiting Petroleum Corporation.
Permian Basin CO2 EOR Market: Revenue Analysis
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