Comms sub­scrip­tion ser­vices and equip­ment mar­ket for up­stream oil & gas ex­pected to ex­ceed US$ 1.5B in 2016

OffComm News - - FEATURE -

Re­port finds that, while satel­lite is ex­pected to re­main a lead­ing tech­nol­ogy for the oil & gas mar­ket, fixed fi­bre and wire­less present cost- ef­fec­tive al­ter­na­tives.

A new re­port from Nav­i­gant Re­search ex­am­ines com­mu­ni­ca­tions in­fra­struc­ture and ser­vices, for dig­i­tal oil­field ap­pli­ca­tions, with fore­casts for com­mu­ni­ca­tions ser­vices and equip­ment at drilling and pro­duc­tion sites on­shore / off­shore and for ser­vice fleet ves­sels, through to 2025. As oil and gas ( O& G) prices con­tinue to de­cline, im­proved safety and op­er­a­tional ef­fi­cien­cies of­fered by new and emerg­ing dig­i­tal oil­field ap­pli­ca­tions could mean the dif­fer­ence be­tween sur­vival and bank­ruptcy for strug­gling ex­plo­ration and pro­duc­tion ( E& P) firms. Through high band­width, low la­tency com­mu­ni­ca­tions, tech­nolo­gies such as: video sur­veil­lance, re­mote con­fer­enc­ing, smart drilling, crew wel­fare, and au­to­ma­tion and con­trol func­tions will be crit­i­cal in­vest­ment ar­eas for com­pa­nies in the up­stream O& G mar­ket. “The eco­nom­ics of the O& G in­dus­try have shifted rad­i­cally over the past 18 months, and with prices ex­pected to stay at his­tor­i­cally low lev­els for the fore­see­able fu­ture, E& P com­pa­nies need ad­vanced dig­i­tal oil­field sys­tems to­day more than ever,” says Richelle El­berg, prin­ci­pal re­search an­a­lyst at the firm. “With high band­width, low la­tency com­mu­ni­ca­tions net­works in place, E& P com­pa­nies can not only op­er­ate more safely and ef­fi­ciently, but th­ese sys­tems could be­come the linch­pin for eco­nomic vi­a­bil­ity in the long run.” His­tor­i­cally, satel­lite ser­vices have filled the com­mu­ni­ca­tions needs of O& G oper­a­tors and their ser­vice providers. But to­day, com­pet­ing and sup­ple­men­tary tech­nolo­gies can be com­bined, ac­cord­ing to the re­port. While satel­lite is ex­pected to con­tinue to be a lead­ing tech­nol­ogy, pro­duc­tion sites likely to be op­er­a­tional for sev­eral decades may now find bet­ter eco­nom­ics in fixed fi­bre or wire­less.

The re­port, Com­mu­ni­ca­tions Tech­nolo­gies for Dig­i­tal Oil­fields, pro­vides a com­pre­hen­sive re­view of the out­look for com­mu­ni­ca­tions in­fra­struc­ture and ser­vices for dig­i­tal oil­field ap­pli­ca­tions. The study also pro­vides fore­casts of drilling and pro­duc­tion sites for both on­shore and off­shore en­vi­ron­ments, as well as the num­ber of ser­vice fleet ves­sels. Tak­ing a deeper look, the re­search also in­ves­ti­gated how the drop in fuel prices has af­fected in­vest­ments into new com­mu­ni­ca­tions in­fra­struc­tures, and how DOF ap­pli­ca­tions af­fect band­width and la­tency re­quire­ments at drilling and pro­duc­tion sites. An Ex­ec­u­tive Sum­mary of the re­port is avail­able for free down­load from Nav­i­gant Re­search’s web­site.

“With high band­width, low la­tency com­mu­ni­ca­tions net­works in place, E& P com­pa­nies can not only op­er­ate more safely and ef­fi­ciently, but th­ese sys­tems could be­come

the linch­pin for eco­nomic vi­a­bil­ity in the long run.”

The global mar­ket for com­mu­ni­ca­tions sub­scrip­tion ser­vices ( satel­lite and cel­lu­lar) and equip­ment ( fi­bre, pointto- point/ point- to- mul­ti­point, WiFi, and hand­held ra­dios) for the up­stream O& G mar­ket is ex­pected to reach just

over US$ 1.5 bil­lion in 2016 and 2017.

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