Offshore Oil and Gas Satellite Communications Market
Despite a significant decrease in oil prices, demand remains high, and production will continue at a CAGR of% between 2014 and 2020.
Though spending on exploration may slow down over the next couple of years while prices are down, offshore drilling and operations will remain strong.
In addition, there are very few offshore vessels that are not currently in use. The number of inactive vessels remains generally consistent, with no significant change in utilization. Thus, while profit margins may have reduced, production has remained consistent.
Decreased oil prices do not affect the communications needs of active ships and vessels that are offshore and unreachable by traditional terrestrial technologies. Thus, the demand for satellite communications in the oil and gas industry will remain strong, being required for monitoring and providing offshore personnel with communications.
The decreased price of oil globally is a temporary phenomenon which will eventually be reversed. However, over the next couple of years, this will be a relevant trend in the industry and dictate spending in the industry. However, there is a finite amount of oil in the world, and the macro-trend is for prices and spending to increase over time. 2015 will be the most effected year, with spending on SATCOM only increasing by % over 2014.
Despite disruptions from oil and gas pricing, this industry remains one of the high-growth industries for the satellite VSAT market. Even during a period of lower margins for oil and gas companies, their consumption of VSAT services and hardware is stronger than the overall VSAT industry average.
Revenue in this research includes US dollars used to purchase satellite VSAT services for oil and gas communications.
About this report
Despite disruptions from oil and gas pricing, this industry remains one of the highest growth industries for the satellite Very Small Aperture Terminal (VSAT) market. Even during a period of lower margins for oil and gas companies, their consumption of VSAT services and hardware is stronger than the overall VSAT industry average. This research will include analysis of spending on satellite communications by oil and gas vendors.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook