PUBLISHER: The Business Research Company | PRODUCT CODE: 1889326
PUBLISHER: The Business Research Company | PRODUCT CODE: 1889326
Carbon dioxide enhanced oil recovery (CO2 EOR) is a petroleum extraction method in which carbon dioxide is injected into depleted or mature oil reservoirs to increase pressure and reduce the viscosity of remaining oil, enabling it to flow more easily to production wells. It is widely used to boost recovery rates from existing fields while also providing an opportunity for long-term underground CO2 storage.
The main sources of carbon dioxide used in enhanced oil recovery (CO2 EOR) include natural CO2, anthropogenic (man-made) CO2, and captured CO2. Natural CO2 refers to carbon dioxide that exists in the environment without human involvement and is typically released from geological sources such as volcanic eruptions, hot springs, and natural underground reservoirs. The key technologies used are cyclic CO2 injection, continuous CO2 injection, and CO2 flooding. The various applications include conventional oil fields, unconventional oil and gas reservoirs, and mature or declining oil fields, serving end users such as oil and gas companies and independent operators.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly affecting the oil and gas sector, particularly in exploration equipment, pipeline infrastructure, and refinery operations. Elevated duties on imported drilling rigs, steel pipes, and specialized machinery have driven up capital costs for both upstream and downstream activities. Midstream operators are burdened by price hikes on valves, compressors, and storage tanks, disrupting ongoing expansion projects. Meanwhile, refiners face rising costs for imported catalysts and control systems essential for processing efficiency. Retaliatory tariffs from key trade partners have also dampened U.S. exports of liquefied natural gas (LNG) and crude oil, weakening market competitiveness. To mitigate these challenges, companies are increasingly investing in domestic manufacturing partnerships, digital asset management, and energy diversification strategies to sustain operations and protect profit margins.
The carbon dioxide enhanced oil recovery (CO2 EOR) market research report is one of a series of new reports from The Business Research Company that provides carbon dioxide enhanced oil recovery (CO2 EOR) market statistics, including carbon dioxide enhanced oil recovery (CO2 EOR) industry global market size, regional shares, competitors with a carbon dioxide enhanced oil recovery (CO2 EOR) market share, detailed carbon dioxide enhanced oil recovery (CO2 EOR) market segments, market trends and opportunities, and any further data you may need to thrive in the carbon dioxide enhanced oil recovery (CO2 EOR) industry. The carbon dioxide enhanced oil recovery (CO2 EOR) market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The carbon dioxide enhanced oil recovery (CO2 EOR) market size has grown strongly in recent years. It will grow from $2.22 billion in 2024 to $2.38 billion in 2025 at a compound annual growth rate (CAGR) of 7.4%. The growth in the historic period resulted from increasing numbers of mature oil fields, rising crude oil demand, a growing focus on tertiary recovery, supportive government initiatives, availability of low-cost CO2 sources, and expansion of oilfield service providers.
The carbon dioxide enhanced oil recovery (CO2 EOR) market size is expected to see strong growth in the next few years. It will grow to $3.12 billion in 2029 at a compound annual growth rate (CAGR) of 7.0%. The growth in the forecast period will be driven by integration with carbon capture projects, expanding CCUS deployment in shale basins, increasing emphasis on emission reduction, adoption in unconventional reservoirs, favorable regulatory frameworks, and strengthened CO2 supply chain development. Major trends in the forecast period include advancements in CO2 injection technologies, innovations in monitoring and reservoir simulation, development of CO2 recycling systems, research focused on improving CO2 storage efficiency, and collaborations aimed at accelerating technology development.
The increasing production of crude oil is expected to drive the growth of the carbon dioxide enhanced oil recovery (CO2 EOR) market. Crude oil production refers to the process of extracting unrefined petroleum from underground reservoirs through drilling and other methods. The rise in crude oil production is mainly due to intensified drilling activities, which are boosting extraction rates and overall output. CO2 enhanced oil recovery works by injecting carbon dioxide into oil reservoirs to mobilize trapped hydrocarbons, improve sweep efficiency, and increase the recovery rate from mature fields. For example, in November 2025, the International Energy Agency, a France-based intergovernmental organization, projected that global oil supply would increase by an average of 3.1 mb/d in 2025 and 2.5 mb/d in 2026, reaching 108.7 mb/d. As such, the growing crude oil production is fueling the expansion of the CO2 EOR market.
Key players in the CO2 EOR market are focusing on innovative solutions such as pilot CO2 EOR deployments to optimize reservoir performance, improve CO2 utilization, and enhance recovery efficiency in mature oil fields. CO2 EOR pilot deployment refers to small-scale, controlled CO2 injection projects used to evaluate the feasibility and effectiveness of CO2 enhanced oil recovery in a given reservoir. For instance, in November 2023, Petroleum Development Oman, an Oman-based oil company, launched its CO2 Enhanced Oil Recovery Project. This project uses advanced monitoring technologies, including continuous sensors to track CO2 movement and reservoir pressure, ensuring precise control and optimal injection performance. Additionally, the project demonstrates how existing gas-processing infrastructure can be leveraged for CO2 handling, improving efficiency and reducing development costs. This initiative aligns with Oman's sustainability goals by combining enhanced production with a long-term carbon management strategy, positioning it as a leading example of low-carbon oil extraction in the region.
In July 2023, ExxonMobil Corporation, a US-based oil and gas company, acquired Denbury Inc. for $4.9 billion. With this acquisition, ExxonMobil aims to expand its carbon capture and storage network and strengthen its leadership in low-carbon enhanced oil recovery solutions. Denbury Inc. is a US-based company specializing in enhanced oil recovery operations using carbon dioxide (CO2) injection.
Major companies operating in the carbon dioxide enhanced oil recovery (co2 eor) market are ExxonMobil Corporation, Shell plc, BP plc, Chevron Corporation, Equinor ASA, Schlumberger Limited, Linde plc, Baker Hughes Company, Halliburton Company, Fluor Corporation, National Oilwell Varco (NOV), TechnipFMC plc, Weatherford International, SNF Group, Expro International Group, Aker Carbon Capture ASA, ESG Solutions, PanTerra Geoconsultants BV, Carbon Engineering Ltd., Ryder Scott Co. LP
North America was the largest region in the carbon dioxide enhanced oil recovery (CO2 EOR) market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in carbon dioxide enhanced oil recovery (CO2 EOR) report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the carbon dioxide enhanced oil recovery (CO2 EOR) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The carbon dioxide enhanced oil recovery (CO2 EOR) market includes revenues earned by entities by providing services such as reservoir evaluation and modeling, CO2 injection services, enhanced oil recovery operations management, and carbon storage and verification services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Carbon Dioxide Enhanced Oil Recovery (CO2 EOR) Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on carbon dioxide enhanced oil recovery (co2 eor) market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for carbon dioxide enhanced oil recovery (co2 eor) ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The carbon dioxide enhanced oil recovery (co2 eor) market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.