Global Big Data in Oil and Gas Exploration and Production Market - Analysis of Growth, Trends and Forecasts (2018 - 2023)
Volatile crude oil price and increasing competition in the oil & gas industry have driven the use of big data to make smart decisions. With crude oil price crossing USD 60 barrel mark, increase in seismic, drilling, logging and production activities are expected to increase the volume of data and data velocity. As a result, big data in the global oil & gas exploration and production market is expected to witness an exponential growth in the forecast period.
Increasing Exploration and Production Activity
With crude oil price crossing USD 60 per barrel mark, exploration and production activities are expected to increase over the coming years. Cheap sensors and ever-greater computing power are likely to increase the volume of data collected by the oil & gas industry. Modern offshore drilling platforms have about 80,000 sensors, which are expected to generate 15 petabytes of data during the life of the asset. Big data and analytics are expected to help the industry navigate the vast data, which is expected to drive the big data market.
Lack of Awareness – Restraints the Market
The oil & gas industry faces lack of awareness in terms of big data. Only 36% of the oil & gas companies have invested in big data and analytics. However, only 13% of them use the insights from technology, as enhanced business intelligence solution. This underlines the fact that many companies have not embedded big data and analytics completely in their systems, but are just applying a part of the technology. Several companies do not have a clear idea about the new technologies hitting the market. Coupled with the fact that a small number of players have a clear idea about the enhanced business intelligence solution available through the use of big data solutions, lack of awareness is considered to be a restraint for the market.
North America to Dominate the Market Share
North America accounts for the major share in global big data in the oil & gas industry. The market is driven by high demand for IT solutions in Gulf of Mexico and the US shale fields, to enhance their productivity and decision making process. ConocoPhillips said that the sensors the company deployed in Eagle Ford shale basin of South Texas helped reduce the drilling time by around 50%. North Sea is expected to account for second-largest share in the market. Digitalization of oilfields in the region contributed to 40% reduction in operating cost in the North Sea, during the low oil price regime.
Digitization of Saudi Arabia’s Oilfields
Saudi Aramco is the biggest oil & gas player in Saudi Arabia. The company is entering into agreements with several companies for digitization of its operations, in the country. Saudi Aramco has signed an MOU with Honeywell. The companies will work together to increase yield, throughput, and improve reliability of Saudi Aramco’s operations by deploying Honeywell’s predictive analytics solutions and cloud-based services.
Key Developments in the market
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