Dig­i­tal oil­field mar­ket to sus­tain well in the low oil price sce­nario

In­te­grat­ing in­stru­men­ta­tion and IT so­lu­tions to op­ti­mise oil­field op­er­a­tions and max­imise ef­fi­cien­cies

OffComm News - - ARTICLE -

The on­go­ing oil price cri­sis has lim­ited oper­a­tors from de­vel­op­ing new fields and drilling op­er­a­tions. Ma­ture oil­fields have be­come the cen­ter of fo­cus for most of the oper­a­tors, in re­gions with high pro­duc­tion costs, to sur­vive the in­dus­try slump.

Data ac­qui­si­tion and an­a­lyt­ics are not enough un­less whole work­flow is op­ti­mized. The dig­i­tal oil­field is of­ten mis­in­ter­preted as a core IT pro­ject, but it is more about col­lab­o­rat­ing IT so­lu­tions with the au­to­ma­tion tech­niques to sig­nif­i­cantly re­duce the re­sponse time. Data ac­qui­si­tion and an­a­lyt­ics are not enough un­less whole work­flow is op­ti­mized. This would en­able bet­ter field man­age­ment.

More­over, data an­a­lyt­ics in th­ese fields is as im­por­tant as pro­vid­ing the data to the rel­e­vant de­ci­sion maker so that there is min­i­mum lag or de­lay in crit­i­cal de­ci­sions. This re­duces the down time for the pro­duc­tion ac­tiv­i­ties thereby en­hanc­ing the prof­its.

Bet­ter con­trol and mon­i­tor­ing ca­pa­bil­i­ties

Adop­tion of dig­i­tal oil­field so­lu­tions re­sult in higher pro­duc­tion lev­els with bet­ter con­trol and mon­i­tor­ing ca­pa­bil­i­ties of the oil­field oper­a­tors. Th­ese will also en­able oper­a­tors to pre­dict pro­duc­tion lev­els and re­sult in max­i­mum re­turns on in­vest­ments. Ac­cord­ing to a re­search study pub­lished re­cently by Mar­kets and Mar­kets, mar­ket growth for DOF so­lu­tions in the Middle East is ex­pected to be the quick­est, at a CAGR of 5.37% from 2015 to 2019. With lower pro­duc­tion cost ad­van­tages, the re­gion is ex­pected to have more num­ber of DOF im­ple­men­ta­tions than any other re­gion.

South Amer­ica and Africa are in the ini­tial stages of in­tel­li­gent field de­vel­op­ment, and have higher oil pro­duc­tion costs with most of their E& P ac­tiv­i­ties lim­ited to off­shore fields. The de­mand for DOF so­lu­tions is there­fore com­par­a­tively low from them.

The DOF mar­ket is ex­pected to reach USD 30.78 bil­lion by 2020. This is ma­jorly driven by the de­mand for pro­duc­tion op­ti­miza­tion so­lu­tions. Cur­rently, due to oil prices below USD 50/ bar­rel, there is a price war be­tween re­gions to in­crease their mar­ket share, re­sult­ing in large amount of fis­cal oil in the mar­ket.

There­fore, the de­mand for pro­duc­tion op­ti­miza­tion is in­creas­ing in this slow growth sce­nario. Other pro­cesses such as drilling op­ti­miza­tion and reser­voir op­ti­miza­tion are likely to fore­see higher growth af­ter the sta­bi­liza­tion of the oil prices which is ex­pected to hap­pen post 2018. Hav­ing oil price near to USD 80/ bar­rel is likely to aug­ment the growth and se­cure the de­clin­ing CAPEX for field de­vel­op­ment.

Re­gional mar­ket overview for the dig­i­tal oil­field

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