This article discusses the growth of digital oilfield solutions, key vendors, and applications. We’ll also discuss the key challenges faced by oilfield operators when implementing new technology in their oilfields. The digital oilfield solution market is expected to grow at a rate of nearly 20% per year through 2025, with a market size of more than $5 billion. You can download a copy of the entire article for free. But remember to read the entire article before investing in the solution.
Growth of digital oilfield solutions
According to the FMI report, the growth of digital oilfield solutions is expected to increase at a CAGR of 14.6% during the forecast period. The digital oilfield solutions market is expected to be led by the upstream segment in the coming years. The upstream segment mainly comprises of light crude oil, which is used in gasoline production. The upstream segment is also expected to witness an exponential growth, as governments of various countries are investing in it.
The global market for digital oilfield solutions is predicted to grow at a CAGR of 6.3% during the assessment period 2018-2028. The report also features competitive analysis of the market across the segments – Products, Applications, and Geography. Further, the report also includes factors affecting the market, including the impact of COVID-19, carbon neutrality, and regional conflicts. Moreover, it includes a detailed analysis of the leading players in the market.
Challenges faced by oilfield operators
While big data, artificial intelligence, and the internet of things are already commonplace, the oil and gas industry is just starting to take advantage of these emerging technologies. These technologies are also known as digital oilfield solutions and promise fantastic opportunities for the industry. For example, smart bit technology and machine learning can help improve drilling efficiencies and improve economics. The same technology can help improve the efficiency of conventional wells.
Unlike the private sector, governments are more sensitive to cybersecurity threats and take extreme precautions when dealing with sensitive proprietary data. While established NOCs are more likely to adopt digital oilfield solutions sooner than smaller, less sophisticated ones, the pace of adoption of these solutions may vary. However, there are four major projects related to digital oilfield solutions in Saudi Aramco since 2010.
The global market for digital oilfield solutions is projected to grow at a CAGR of more than 30% until 2022, with the upstream segment accounting for the largest share of the market. Growth in the upstream sector will be fueled by increasing production of light crude oil, which is used in gasoline production. In addition, governments of various countries are planning to invest massive sums in accelerating production in this sector. With this growth in the market, the key vendors in this sector are expecting to benefit from this.
As the oil and gas industry pushes the digitalization agenda, key participants are looking for new ways to engage their workforce. Halliburton recently introduced its DecisionSpace(r) 365 cloud application, which offers scalable earth modeling, a real-time control edge, and a data foundation for full-scale asset simulation. These technologies help operators improve reservoir characterization while minimizing exploration risk. Similarly, industrial automation providers partner with oilfield service providers to offer digital oilfield solutions. For example, Rockwell Automation and Schlumberger have formed a joint venture, called Sensia, to develop a fully integrated digital oilfield automation solution.
The growth of digital oilfield solutions is anticipated to accelerate along with the increase in real-time monitoring. This type of technology eliminates lost time and money associated with nonproductive functions. Digital oilfield solutions have enabled more accurate and reliable administration. The growth of the digital oilfield market is anticipated to be driven by the growing adoption of wireless technologies, data analysis and gathering services, and increased expenditure in offshore oil exploration. But the adoption of these technologies isn’t without its challenges.
With the growth of data and the growing importance of gaining insight, the oil and gas industry is trying to adopt lessons learned from other industries. In oil and gas, data analytics and simulations can increase productivity and improve the safety of workers and the environment. These solutions enable oil and gas companies to make better decisions and meet environmental compliance requirements while optimizing field operations. For example, AI-based predictions can help companies improve their environmental compliance.