Exploration and production firms are expected to make more upfront capital investments in privately owned solutions
A recent report from Navigant Research examines communications infrastructure and services for digital oilfield applications, with forecasts for communications services and equipment at drilling and production sites in onshore and offshore environments, as well as for service fleet vessels, through 2025.
The global collapse of fuel prices shook the oil & gas (O&G) industry in 2015, and the need for reliable, high-bandwidth communications for all phases of the upstream O&G process—exploration, drilling, and production—has never been greater. As exploration and production (E&P) companies adjust to the new normal and continue to seek efficiencies through automation, market growth is expected to resume for the remainder of the decade and into the 2020s. Click to tweet: According to a recent report from @NavigantRSRCH, the market for communications subscription services and equipment for upstream O&G is expected to total nearly $2.3 billion in 2025.
“The potential for real savings and efficiency gains thanks to digital oilfield applications should drive renewed growth in spending for connectivity at oilfields,” says Richelle Elberg, principal research analyst with Navigant Research. “Most new drilling and production sites are expected to have modern communications installed at the outset.”
In 2016 and beyond, E&P companies will be more price-sensitive and seek more bandwidth when it comes to their communication needs, according to the report. However, financial constraints and the inherently cautious nature of E&P management imply that gradual investment will occur at existing production sites.
The report, Communications Technologies for Digital Oilfields, provides a comprehensive review of the outlook for communications infrastructure and services for digital oilfield applications. The study provides forecasts of drilling and production sites for both onshore and offshore environments, as well as the number of service fleet vessels. Regional considerations are outlined, and the major communications technologies employed in digital oilfields are described. The report also examines the market sizes of both communications equipment and subscription services tied to upstream O&G sites and profiles the key vendors and service providers. An Executive Summary of the report is available for free download on the Navigant Research website.
Contact: Lindsay Funicello-Paul
* The information contained in this press release concerning the report, Communications Technologies for Digital Oilfields, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.