psalexa
logo

Digital Oilfield Technology Market

Digital Oilfield Technology Market by Process (Production Optimization, Reservoir Optimization, Drilling Optimization), by Device (Remote Terminal Unit, Gateway), by Service (Instrumentation & Automation, IT Expenditure), by Geography (U.S., Canada, Mexico, U.K., Norway, Russia, China, India, Malaysia, Brazil, Saudi Arabia, U.A.E., Kuwait, Oman, Nigeria) – Global Market Size, Share, Development, Growth, and Demand Forecast, 2013–2023

Published: June 2018
Report Code: PE10137
Available Format:

Digital Oilfield Technology Market Overview

The global digital oilfield technology market was valued at $26,570.4 million in 2017 and is projected to reach $34,871.6 million by 2023, witnessing a CAGR of 4.6% during the forecast period. The market growth is driven by cost reduction by oil and gas companies and growing involvement of software companies in digital oilfield.

 

GLOBAL DIGITAL OILFIELD TECHNOLOGY MARKET, BY PROCESS, $M (2013-2023)

DIGITAL OILFIELD TECHNOLOGY MARKET

Digital oilfield technology is the integration of networking, communication, and automation with oilfield processes such as surveying, drilling, and production.

Based on process, the digital oilfield technology market is categorized into production optimization, reservoir optimization, drilling optimization, and others; ‘others’ include safety management, asset management, and repair and maintenance. Production optimization was the largest category in the market, contributing more than 35.0% share in 2017. This can be attributed to the property of production optimization in quickly spotting the underperforming assets/wells to ensure that the production target is met to deliver accurate production data for allocation, accounting, and reporting.

The ‘device’ segment in the digital oilfield technology market is classified into remote terminal unit (RTU) and gateway. Gateway is expected to be the faster growing device category in the market, advancing at a CAGR of 4.7% during the forecast period. Gateway in digital oil fields collate data from RTUs in the field and remote sites and integrate these data into the company’s IT network. This makes data communication in the oilfield faster and easy, thus leading to the category’s growth in the market.

In terms of service, the digital oilfield technology market is bifurcated into instrumentation and automation, and IT expenditure. Of these, instrumentation and automation was the larger category in the market, with over 50.0% share in 2017; it is expected to be the faster growing category during the forecast period. The market growth of the service type is driven by the growing demand for automated digital oilfield technology and decline in human capital in the industry.

The instrumentation and automation category is further classified into distributed control system (DCSs), smart well, supervisory control and data acquisition, wireless sensor, safety system, programmable logic controller, and others; ‘others’ include process and human machine interface instrument. DCSs was the largest category in the instrumentation and automation market. Distributed control systems unlike other automation system, control the oilfield process directly, together with the integration of packaged process units having independent programmable logic controllers. The IT expenditure category of the service in the digital oilfield technology market is further classified into software, IT outsourcing, IT services, and others.

Globally, Europe was the largest region in the digital oilfield technology market, accounting for more than 30.0% in 2017. The region has several mature oilfields in the North Sea that require increased use of digital processes to produce oil. Russia, the U.K., and Norway share significant number of reserves in the region. The high number of oil and gas fields leads to the demand for digital oilfields such as well intervention and enhanced oil recovery (EOR) techniques, thus driving the market growth.

Digital Oilfield Technology Market Dynamics

Growing technological advancement and huge investment by major players is the major trend witnessed in the digital oilfield technology market. Whereas, cost reduction by oil and gas companies and growing involvement of software companies in digital oilfield are the major driving forces of the market.

Trend

Digital oilfield technologies are readily available and have proved their value in the form of reduced operating cost, and increased efficiency and revenue generation; for example, fiber-optic pressure and temperature gauges allow sustained down-hole profiling, which offers managers more robust information, resulting in more comprehensive asset awareness. Hence, pertaining to such advantages of these technologies in in oilfield processes, the major market players such as British Petroleum and Kuwait Oil Company are making huge investments to expand their global footprints in the digital oilfield technology market.

British Petroleum invested heavily in fiber communications and established advanced collaborative environments, onshore monitoring centres, which enable experts to work directly with offshore operators using real-time information. Furthermore, Kuwait Oil Company launched the Kuwait Integrated Digital Field Jurassic project as a cross-domain solution consisting of a fully integrated infrastructure, supporting field instrumentation, automated workflows, and ergonomic collaboration. Hence, investments and technological advancements carried out by key players is the major trend in the digital oilfield technology market.

Driver

Major software companies are working with oilfield companies to offer their services in digitizing the field. EMC Corporation announced a development center in Rio de Janeiro to focus on big data analytics for oil and gas. Other large IT and software companies with solutions designed for oil and gas companies are IBM, Microsoft, Progress, and SAS. A smaller company in this space is Mobilize (backed by Chevron Technology Ventures), which enables energy firms to aggregate data in real time from multiple vendors. Hence, such growing involvement of software companies in oilfield processes is expected to boost the digital oilfield technology market growth.

Restraint

Oil prices started to fall after a peak of $114.81 a barrel in June 2014. The Brent Crude benchmark on the ICE Futures Europe exchange, dropped by 61.2% over the last 22 months to $44.53 on April 2015 during the same period average gas prices in the U.S. fell to $2.09 a gallon from about $3.70 a gallon. This uncertainty in oil prices forced many companies to shut their field operations. The low-price scenario is expected to remain the same during the coming years, which will hinder the growth of the digital oilfield technology market to some extent.

Digital Oilfield Technology Market Competitive Landscape

Some of the major players operating in the global digital oilfield technology market are Schlumberger Limited, Baker Hughes Incorporated, National Oilwell Varco Inc., Weatherford International plc, Siemens AG, Honeywell International Inc., Kongsberg Gruppen, Paradigm Ltd., and Petrolink.

Place An Order

Single User License
question-mark

The report will be delivered in PDF format without printing rights. It is recommended for a single user.

USD 5100
Group License
question-mark

The report will be delivered in PDF format along with the printing rights. It is recommended for up to five users.

USD 6100
Enterprise License
question-mark

The report will be delivered in PDF format along with printing rights and detailed Excel sheet. It is recommended for organizations where multiple people would like to access the report from multiple locations.

USD 9100

Pre-Purchase Enquiry