Enhanced Gas Recovery (EGR) Market

Global Enhanced Gas Recovery (EGR) Market (2024 to 2032)

The Global Enhanced Gas Recovery (EGR) Market was valued at USD 5.42 billion in 2023 and is anticipated to reach USD 9.39 billion by 2032 from USD 5.76 billion in 2024, witnessing a CAGR of 6.30% during the forecast period.

The idea of ​​the enhanced recovery of gas (RGE) aims to increase the organization of the recovery process for natural gas, crude oil fluids, and various distillates. Enhanced gas recovery uses techniques such as fracturing, water injection, and gas injections such as CO2 injections to increase reservoir gas production. As energy needs increase around the world due to population expansion and rapid urbanization, it has become imperative to make the most of existing resources. Injecting carbon dioxide into a natural gas reservoir is a promising technology to reduce anthropogenic gas emissions and increase the final recovery of natural gas. Computer simulation is an important and inexpensive tool for designing pilot projects and predicting the optimal trade-offs between peak methane production and peak sequestration.

Market Drivers

The increasing demand for natural gas due to environmental concerns is the principal driver of the global enhanced gas recovery market.

Today, natural gas is highly preferred over other conventional fossil fuels because it causes much less pollution and is more abundantly available, both on land and at sea. As EGR reduces production costs, gas extraction and production (E&P), providers are turning to this technique to maximize production in addition to escalating well pressure for rapid extraction. Carbon capture and storage technology to trap carbon dioxide within the reservoir is predicted to help reduce carbon dioxide emissions to the atmosphere. This is supposed to help E&P market players reduce greenhouse gas emissions, which in turn supports the expansion of the worldwide EGR market.

Market Restraints

The heavy investments required to build the EGR mechanism for production remain the main obstacle to the market expansion rate. E&P companies have applied the EGR method to increase in-hole pressure for smooth extraction associated with optimal cost. The improved gas recovery method employed extraction gases that were mixed with natural gas along with other impurities. The extracted gas requires additional treatment to remove these impurities, escalating the cost of the product. This is predicted to hamper the global EGR market for the foreseeable future.

Market Opportunities

The global enhanced gas recovery market is predicted to grow due to the rising call for natural gas around the world over the next seven years. Enhanced Gas Recovery (EGR) improves extraction efficiency, which is predicted to drive market expansion over the foreseen period. Enhanced gas recovery greatly increases the volume of gas extracted and also reduces the cost of extraction, which is predicted to be the main expansion factor in the market. New research has developed the use of carbon dioxide over nitrogen gas for more efficient extraction. Carbon dioxide is heavier than nitrogen and can be easily trapped under the tank, providing more pressure that is supposed to drive market expansion during the outlook period. In addition, it is estimated that the spontaneity of automation to reduce degradation will cause a flow of notice of increasing development during the forecast period.

Market Challenges

Another unfavorable factor for the market is the incorporation of carbon dioxide into natural gas after the injection of gas for extraction. Improved gas recovery procedures use gases for removal, which are combined with natural gas with different pollutants. The extracted gas must also be selected to extract these contaminants, which increases the price of the product. This is estimated to restrict the all-inclusive EGR market for the foreseeable future.

Impact of COVID-19 on the Enhanced Gas Recovery (EGR) Market

The natural gas call is less sensitive to coronavirus in the short term than oil due to its limited exposure to the transportation sector. Although the call for natural gas in the electricity sector is affected, the loss of commercial and industrial electricity calls is partly transferred to residential uses. However, the call for natural gas could decline further as the year progresses due to lower calls in the energy and industrial sectors. The future call will depend on how industrial uses of natural gas are affected, the short-term and long-term effects of investment reductions in the natural gas sector, and the extent to which government policies aim to accelerate gas transitions. Clean air and energy will promote fuel switching and encourage investment in energy system integration. This can be done through the technologies offered by natural gas, green gas, hydrogen, and carbon dioxide solutions. Any results for these criteria will depend on the duration of the COVID-19 pandemic, the speed of the economic recovery, and how well the government's stimulus plans incorporate clean air and political goals for energy transitions.

ENHANCED GAS RECOVERY (EGR) MARKET REPORT COVERAGE

Market Segmentation

Global Enhanced Gas Recovery (EGR) Market - By Product Type

• Nitrogen Based EGR
• Carbon Dioxide Based EGR
• Others

Carbon dioxide is more substantial than nitrogen and can be confined under reservoirs; it is believed to help reduce the release of carbon dioxide into the atmosphere. This is predicted to help EGR market competitors reduce greenhouse gas emissions, which will subsequently support the development of the EGR market.

Global Enhanced Gas Recovery (EGR) Market - By End-Users

• Oil and Gas Industry
• Construction Industry
• Residential
• Others

Market Regional Analysis

• North America 
• Europe 
• Asia Pacific
• Latin America 
• Middle East & Africa 

Geographically, the use of EGR is very widespread; it is more common in the developed countries of the United States, Canada, Green, and the Gulf of Mexico, making North America the most profitable region in the worldwide enhanced gas recovery market. Shale gas is available in abundance in these regions, and the rate of adoption of new technologies is high. North America was the dominant regional market in 2020 due to increased exploration and production projects and natural gas requirements. The area is also estimated to experience remarkable development with the carbon dioxide EGR procedure over the predicted period due to the strict rules in the areas.

The Asia-Pacific is estimated to be the fastest-developing zonal market due to stringent zone regulations and the increasing use of natural gas. Modern shale gas reservoir detections, typically in China, are predicted to develop the enhanced gas recovery market in the areas. Growing concern for habitat in various countries is dominating customers to change their movements to have fuel injectors that are not stained. In the coming years, the EGR market is likely to undergo remarkable development in the Asia-Pacific.

North America was the dominant regional market in 2021 due to expansion in the exploration and production business and the call for natural gas. The region is also supposed to see significant expansion with the deployment of the carbon dioxide EGR method during the foreseen period due to strict regulations in the region. Asia-Pacific is estimated to be the fastest-growing regional market due to the higher consumption of natural gas. Discoveries of new shale gas reserves, particularly in China, are likely to drive the enhanced gas recovery market in the area.

Market Key Players

1. Abu Dhabi National Oil Company (ADNOC)
2. Linde Group
3. Praxair, Inc.
4. NALCO Energy Services
5. Tiorco, LLC.
6. Dow Chemical Company

Market Recent Developments

• The government of India launched a draft policy to boost oil and gas production through projects using enhanced oil recovery (EOR) techniques that offer significant tax incentives, including a 50 per cent exemption from oil exploitation and a reduction of the participation of companies in oil profits.