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The global digital oilfield services market is expected to grow at a CAGR of more than 4.5% over the period of 2020-2025. Due to volatile oil-price scenario, the focus is now on installing the digital solutions which provide immediate benefits in terms of lowering costs, such as cloud technology and Internet of Things (IoT), which, in turn, is driving the digital oilfield services market. Oil and Gas operators are striving for maximum production from mature fields, for which digital oilfield is a viable solution which helps in quick and effective planning of well intervention techniques, hence driving the global market. However, cyber attacks and lack of funding in oil and gas automation process acts as restrain for the global digital oilfield services market.
- The reservoir optimization segment which involves preparation of exploration and development strategy, based on the data acquired during all the phases of oil or gas field’s life posts high demand for digital oilfield and is set to drive the market during the forecast period.
- According to Environmental Defense Fund or EDF, the global oil and gas industry is losing as much as USD 34 billion per year in in leaked, vented, and flared methane. So, for reduction of methane emission, digital transformation of methane management is likely to create massive opportunities for digital oilfield services market.
- Due to record high production, increased offshore activity, and production from shale fields, North America is the largest market during the forecast period, with majority demand coming from the United States.
Key Market Trends
Reservoir Optimization Segment to Dominate the Market
- Reservoir optimization requires handling the data acquired during seismic surveys, geophysical evaluation, reservoir fluid evaluation, drilling data, and production data.
- The big data analytics services help handle the data during this process in many ways, such as finding the trends in the data, identifying anomalies, among others, which in turn, helps in reducing uncertainties along with saving time in the process, by improving the productivity of the workforce, and more importantly, enabling better decision making.
- The decisions made during reservoir optimization affects the production life of the field. Thus, reducing the mistakes in the process can save large amount of money for the operating company, throughout the production life of the field.
- Growing exploration activities in offshore region, and growing production activities in Permian region of Texas and Federal Gulf of Mexico demands for reservoir optimization to ensure maximum production.
- Therefore, with the increase in demand for reservoir optimization, the global digital oilfield services market is expected to grow during the forecast period.
North America to Dominate the Market
- North America has dominated the digital oilfield services market in 2018 and is expected to continue its dominance in the coming years as well. The region consists of major oil and gas countries which have some of the largest petroleum reserves in the world, which enables the companies to use digitalization techniques to enhance production efficiency.
- The oil and gas industry is growing in this region; hence, many of the mature oilfields are expected to become digitalized in the coming years and hence drive the global market.
- In 2018, the United States Interior Department allowed drilling in nearly all the country’s 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.
- Moreover, increasing offshore field development activities in the Gulf of Mexico along with complying to the health and safety regulations is expected to drive the digital oilfield services market during the forecast period.
The digital oilfield services market is fragmented. Some of the key players in this market are Baker Hughes Co., Schlumberger Ltd., Weatherford International Ltd., Siemens AG, Halliburton Company, and Kongsberg Gruppen AS.
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