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