Carbon Dioxide Enhanced Oil Recovery (CO2 EOR) Market Report 2026

The carbon dioxide enhanced oil recovery (co₂ eor) market size has grown strongly in recent years. It will grow from $2.38 billion in 2025 to $2.55 billion in 2026 at a compound annual growth rate (CAGR) of 7.2%. The growth in the historic period can be attributed to declining production from mature oil fields, need for enhanced recovery methods, availability of natural CO₂ sources, oil price volatility, infrastructure development for CO₂ transport.

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 $3.33 billion in 2030 at a compound annual growth rate (CAGR) of 6.9%. The growth in the forecast period can be attributed to carbon emission reduction initiatives, expansion of CCUS projects, increasing focus on low carbon oil production, government incentives for CO₂ utilization, demand for improved recovery efficiency. Major trends in the forecast period include rising adoption of CO₂ injection techniques, integration of carbon capture with EOR, expansion of mature field recovery projects, growth in CO₂ storage linked EOR, focus on maximizing recovery from existing fields.

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, TechnipFMC plc, Weatherford International, SNF Group, Expro International Group, Aker Carbon Capture ASA, PanTerra Geoconsultants BV, Carbon Engineering Ltd., Ryder Scott Co. LPP, Occidental Petroleum Corporation, Denbury Inc., Kinder Morgan Inc., Mitsubishi Heavy Industries Ltd., Air Products And Chemicals Inc.

North America was the largest region in the carbon dioxide enhanced oil recovery (CO₂ EOR) market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the carbon dioxide enhanced oil recovery (co₂ eor) market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the carbon dioxide enhanced oil recovery (co₂ eor) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, 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.

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