Digital oilfield market size to exceed US$39 billion by 2025, says Global Market Insights
Published by Nicholas Woodroof,
Ongoing advancements in technology along with a growing awareness among industry players regarding the potential of IoT, analytics and cloud computing will drive the digital oilfield market's growth. Prevailing technology promotion through Industry4.0 or the Fourth Industrial Revolution along with government programmes to enhance the domestic technological capabilities will augment the industry landscape.
The growing number of mature fields along with a need for economic recovery of resources will propel Europe's digital oilfield market growth. Large number of fields across Russia and Romania have reached their maturity. Companies are adopting enhanced oil recovery methods to boost production. Advanced solutions, including reservoir optimisation and well testing facilities, will help operators to take necessary action while saving cost on expensive recovery methods.
Growing exploration and production activities on account of recovering oil prices will enhance the digital oilfield's market share. Increased rig count along with discoveries of new oilfields will provide substantial growth prospects for investors. For instance, the US's rig count increased from 900 in 2017 to 945 in 2018.
A growing need to transform business operations on account of economic dependency on oil production and trade will stimulate the Middle East's digital oilfield market. The majority of the investment in the region is witnessed across Saudi Arabia and Kuwait. The companies have started adopting new digitalised solutions in order to boost their production output and returns. Major investors across the region include Kuwait Oil Company, Saudi Aramco, and Abu Dhabi National Oil Company. In 2019, Kuwait Oil Company has planned to initiate phase two of KwIF project in which it has integrated operations involving optimisation of field assets, real time surveillance and modelling.
Requirement of large capital investments along with a growing need for strategically planned drilling operations will foster the digital oilfield market by drilling optimisation. Increasing well complexity and low oil prices are the prime factor instigating the requirement of advanced drilling solutions. In addition, it further offers enhanced safety, reduces drilling risk, minimises nonproductive time while providing guidance for the project that are likely to boost its adoption.
Declining technology costs along with growing industry merger and acquisitions will drive the digital oilfield's market size by information technology. In addition, growing integration of technology and business strategies are compelling oil and gas companies to innovate and develop extensive IT infrastructure and services.
Read the article online at: https://www.oilfieldtechnology.com/digital-oilfield/23072019/digital-oilfield-market-size-to-exceed-us39-billion-by-2025/
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