Cost Optimisation Through Seamless Integration of Operations to Boost Digital Oilfield Market
For oil and gas companies, digital oilfield services enhance the visibility and control of the operations. Leveraging new technologies, including in-memory computing, enterprise mobility and analytics to integrate processes, will help taking on-the-field decisions better. Use of digital oilfield services will integrate production, maintenance, and engineering operations. Utilisation of digital oilfield services enables operators to integrate, interpret, and act on production-related information in real time to optimise field operation, and development.
The resultant enhanced efficiency, optimum costs, prolonged well life, and improved operational capabilities even in high-risk locations collectively drive adoption in digital oilfield market. Whereas high initial investment is binding it. Declining prices of oil, the lasting impact of COVID-19 outbreak, high focus and investments in the renewables sector, followed by high capital investments in digital oilfield will remain the key factors challenging rapid growth of digital oilfield market space.
During the initial months of the pandemic, i.e., in April 2020, the prices of crude oil went sub-zero. WTI crude oil futures fell to a negative $37.63 per barrel. Demand shortage of crude oil-based products such as gasoline, diesel, and jet fuel in line with oversupply/stored crude oil has forced oil and gas E&P companies to halt production. Several planned onshore and offshore E&P projects were put on hold, which has raised concerns regarding the future of oil and gas industry, as well as companies involved in the entire value chain. Upstream oil and gas industry has faced multiple shocks amid the lockdown situation, which included easier accessibility to equivalent substitutes, changing consumer preferences, and rapidly changing geo-political scenarios. This may lower investments into digital oilfield market.
Reservoir and Production Optimisation Services to Lead
This report extensively analyses the digital oilfield market based on the key services, and applications. Reservoir and production optimisation service is expected to dominate the digital oilfield market. The falling year-on-year production from existing wells along with need to devise an economic well recovery method will accelerate industry growth. A majority of oil and gas field operators are beginning to invest in digital technologies to monitor and optimise operations. Digital oilfield services are predominantly adopted to streamline data collection, validation, surveillance, and notification processes, close the gap between decision-making and execution in the field, increase operational insight and create accurate production plans, and improve business and compliance processes for revenue, land, and financial functions. Discoveries and developments of ultra-deep-water exploration of oil and gas assets is set to continue, and more finds are anticipated in areas like Guyana, Mozambique, South America, and Australia, which is expected to fuel investments in digital oilfield services in the next few years.
European, and American Players to Lead Development of Cutting-edge Technologies for Digital Oilfield
The exploration activity for new oil and gas resources has been increasing in recent years. North America is poised to lead the digital oilfield market in the coming decade because of increased deep-water exploration activity in some areas such as Gulf of Mexico and in shale areas. Service providers and manufacturing companies are actively looking into regions like North America, and Asia Pacific as these regions have found huge shale reserves and huge exploration activity is undergoing or planned in the coming decade.
In August 2020, PTTEP has awarded Halliburton a contract to design and implement a series of digital transformation projects as part of PTTEP’s Advanced Production Excellence (APEX) Initiative. In Asia Pacific, countries in ASEAN, especially Thailand is expected to be the most lucrative country for investments in digital oilfield. APEX will improve operational efficiency and production in four offshore fields: Arthit (Thailand), Greater Bongkot South (Thailand), Greater Bongkot North (Thailand) and the Myanmar Zawtika Field.Landmark, a Halliburton business line, would deploy its DecisionSpace® Production Suite in the cloud to improve production operations from the subsurface to processing facilities.
Europe has a decent market opportunity for digital oilfield services as the North Sea exploration activity has been moved to much deeper waters and these operations require very complex and accurate measuring systems in the field’s daily operations. While the ability to operate in tougher environmental conditions, increasing investments in exploration activities across the globe are driving the market. On the other, lack of skilled labour, high initial investments are some of the factors constraining the market.
In Middle East & Africa, countries such as Saudi Arabia, Oman, Qatar, and Kuwait are the major producers of oil and gas. In Middle East & Africa, Saudi Arabia is the key nation eyeing high portion of total investments into digital oilfield space. In September 2020, Khurais oilfield in Saudi Arabia was recognised for adoption of adoption and integration of cutting-edge technologies of the Fourth Industrial Revolution (4IR). This is expected to boost the demand for digital oilfield services in Middle East & Africa
Global Digital Oilfield Market: Competitive Landscape
Some of the key players involved in digital oilfield market include GE, Halliburton, Schlumberger Limited, Weatherford International, IBM, Red Hat, Siemens AG, Rockwell
Automation, Honeywell International Inc., Kongsberg Gruppen ASA, National Oilwell Varco, Inc., Pason Systems Corp., Petrolink, and Vmonitor LLC. Companies offering digital oilfield solutions are focusing on strategic collaborations to develop cutting-edge technologies.
In September, Schlumberger, IBM, and Red Hat, have announced a collaboration to accelerate digital transformation across the oil and gas industry. Collaboration of three players involved in digital oilfield market space will provide global access to Schlumberger’s exploration and production (E&P) cloud-based environment and cognitive applications by leveraging IBM’s hybrid cloud technology, built on the Red Hat OpenShift container platform. In August 2020, Weatherford, and INT expand collaboration on 2D, 3D real-time well visualisation.
The digital oilfield market is segmented as below:
Key Elements Included In The Study: Global Digital Oilfield Market
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