Global Digital Oilfield Services Market - Segmented by Type of Process and Country - Growth, Trends, and Forecast (2018 - 2023)
After the oil price crisis in 2014, the majority of E&P companies, who had invested heavily in exploration and production activity, suffered severe losses as the oil prices dropped well below the breakeven oil prices. After this, many organizations started adopting the digital oilfield solutions, because of their ability to reduce the operation costs by helping with faster decision making, improving the productivity of the workforce, and assisting with the Asset Integrity Management (AIM). Moreover, during the forecast period, the operator’s focus is expected to shift toward services that provide long-term benefits such as improving analytics capabilities by employing big data analytics solutions.
Low Oil Prices - Driving the Market
With current low oil-price scenario, the focus is on installing the digital solutions which provide immediate benefits in terms of lowering costs, such as cloud technology and IoT. The digital services have helped the operators in reducing the cost successfully by assisting with the decision-making process and by improving operational efficiency. Operators have been focusing toward operational efficiency improvements for cost savings through sustainable exercises, such as major changes in drilling strategy to optimize the production. As a result, breakeven prices have consistently reduced in many oil fields all across the world. Lower oil prices scenario is expected to drive the digital oilfield services market during the forecast period.
North America Shale Gas Production - Increased Offshore Activity is a Market Driver
Due to record high production, increased offshore activity, and production from shale fields, North America is expected to be among the market leaders during the forecast period. Supported by industry’s growing focus toward the reduction in the operating costs, particularly for the offshore oil fields and shale oil production. For example, the breakeven price of Eagle Ford Shale, located in the United States, decreased by about 55% during the 2013—16 period. The operating company, ConocoPhillips, installed sensors across the wells drilled in this field for data collection and monitoring purpose. The data collected by the sensors were used for improving the development strategy and drilling operations. This data helped the company reduce the drilling cost substantially, saving billions of dollars.
US – A Regional Hotspot for Digital Oilfield Services Market
In 2016, the oil and gas production from the United States accounted for about 13% and 21% of the total global production respectively. The country has been a pioneer of the technological developments in the oil & gas industry. In January 2018, US Interior Department allowed drilling in nearly all US waters, which is among the biggest expansions of offshore oil & gas leasing by the federal government in the history of the United States. This new development is expected to drive the offshore exploration and production activity, and hence, the demand for digital oilfields solutions is likely to increase in the future.
Key Developments in the Market
October 2017: Weatherford International PLC had entered into an agreement with Intel Corporation, at the IoT Solutions World Congress in Barcelona. The aim of the agreement was a collaboration between the oilfield services provider and the technology giant, and to demonstrate the benefits of bringing the Internet of Things (IoT) technologies to the oil field.
July 2017: Emerson completed the acquisition of Paradigm, a leading provider of software solutions to the oil and gas industry. The combined company has a comprehensive Exploration & Production (E&P) software portfolio offering.Major Players: Baker Hughes, A GE Co., Halliburton Company, Schlumberger Limited., Weatherford International PLC, Siemens AG, Rockwell Automation, Honeywell International Inc., amongst others.
Reasons to Purchase The Report
Current and future global digital oilfield services market outlook in the developed and emerging markets
Analyzing various perspectives of the market with the help of Porter’s Five Forces analysis
The segment that is expected to dominate the market
Regions that are expected to witness the fastest growth during the forecast period
Identify the latest developments, market shares, and strategies employed by the major market players
3 month analyst support, along with the Market Estimate sheet (in excel)Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.