(EnergyIndustry.Net, April 13, 2020 ) Market Overview The Global Digital Oilfield Market is expected to grow at a CAGR of 4.91% during the forecasting period (2019-2026). Digital oilfields endeavor to portray different uses of advanced software and data analysis techniques to enhance the profitability of oil and gas operations. It helps imitate the behavior of an oil and gas field on a computer. This aids in better decision making through the use of models, work processes and engineering abilities.
Market Dynamics Increase in demand for oil and gas, recovering prices of crude oil, human resource concerns, lowering down operation costs, increase in investments on offshore explorations and reduction of downtime by companies are salient factors responsible for the growth of the global Digital oilfield market. Increase in demand for oil and gas in the world is one of the primary factors promoting the growth of the digital oilfield market. According to the International Energy Agency (IEA), the global oil demand in 2018 is 6.9mb/d and is expected to reach 104.7mb/d by 2023. The application is expected to rise at an average annual rate of 1.2mb/d with countries like China and India together contributing to more than 50% of the global oil demand. Additionally, OPEC crude oil prices hit a record high of USD 109 in 2012 and decreased close to USD 96 in 2014. The prices fell steeply in the following years plummeting to USD 40 in 2016 and slowly started recovering in 2017. The cost of crude oil in 2017 was USD 52 and in the average crude oil price in 2018 at USD 70. Owing to the factor that crude oil prices are recovering, this would serve as a critical opportunity for most of the companies to invest in digital oilfield solutions. Fluctuations in oil prices, cyber threat and unwillingness to adopt digital solutions are some of the aspects that might hinder the global digital oilfield market. Fluctuations in crude oil prices are the primary factor which is responsible for impeding the growth of the digital oilfield market. The laws of supply and demand cause oil prices to fluctuate. When amount exceeds demand, the oil prices fall. The cost of Brent crude oil in 2014 was USD 99, and it decreased to USD 52 in 2015 and continued to decline until 2016 to USD 43 per barrel. These fluctuations forced many companies to shut down field operations. These unpredictable changes in the prices of crude oil will hamper the growth of the market.
Segmentation Analysis The global digital oilfield market has been segmented by type of process, kind of service and geography. The global oil field market has been segmented by the type of process as Production optimization, Reservoir optimization, Drilling optimization, Repair and maintenance, Well performance evaluation, Safety Management, and Asset management. The global oil production as per the Global energy statistical yearbook in 2005 was about 88721 thousand barrels per day and reached 92649 thousand barrels in 2017 with a 0.7% annual growth rate. Owing to this, production optimization is considered to be a widely growing segment when compared to the other sections because of the increase in global production of oil and gas. Based on the type of service, the market has been segmented as Automation and Instrumentation services and Information Technology (IT) services. Automation and Instrumentation services in Digital oilfields include SCADA (Supervisory control and data acquisition), good smart sensors, wireless sensors, distributed control systems and other components which are widely used to monitor industrial operations and real-time process data. These components are crucial for driving this market and therefore, the instrumentation and automation segment continues to dominate the service segment of the digital oilfield market
Geographical Trends The global digital oilfield market is segmented into North America, Europe, and the Asia Pacific, the Middle East, and Africa, and Rest of the world. North American region is further segmented into the following areas: The US, Mexico, and Canada. According to the International Energy Agency, currently, the United States dominates the list of global oil and natural gas producing nations. The annual output of the US increased to 15.6 million barrels per day in 2017 which was previously 14.8 million barrels per day in 2016. Due to this increase in productivity, North America will continue to dominate the global digital oilfield market. Countries in the Middle East region like Saudi Arabia and Iran are global leaders in oil and natural gas production. Saudi Arabia ranks second in the list of oil and natural gas producing nations with an annual output of 12 million barrels per day. Owing to the low production costs and a rise in offshore explorations in these regions, these countries have recently started to adopt digital oilfield solutions and will continue to remain as healthy markets in the future.
Competitive Trends The major players in this market incorporate competitive strategies like mergers and acquisitions to improve their competitiveness. For instance, in July 2018, Halliburton company acquired Athlon Solutions, LLC with an aim to strengthen its manufacturing and supply chain lines. In November 2018, Halliburton partnered with Akwa Ibom to open oil and gas research and training institute in Nigeria. Moreover, in November 2018, Baker Hughes and General electric company announced a series of long-term agreements to amend the technological relationships between the two companies. Similarly, in July 2017, Emerson has completed acquiring paradigm, a prominent provider of software solutions to the oil and gas industry. New product launches and expansion of facilities are some other essential strategies adopted by most of the companies to contribute to the growth of the company and improve their market growth rate. In November 2018, Emerson released the Roxar tempest 8.3, a platform for advanced reservoir management. Subsequently, Honeywell International released a cloud-based remote monitoring system for thermal processes. The scope of the Report The report covers the factors impacting the market, Porter 5 Forces, Market Share Analysis, Price trend analysis, Product Benchmarking, and company profiles. Based on the process type, the market is segmented as Production optimization, Reservoir optimization, Drilling optimization, Repair and maintenance, Well performance evaluation, Safety Management, and Asset management. Based on the type of service, the market is segmented as Instrumentation and Automation and IT Services. Based on the geography, the market is segmented into the following regions North America, South America, Asia-Pacific, Europe and Rest of the World. The report profiles the following companies Schlumberger Ltd, Baker Hughes, AGE Co, Weatherford International PLC, Siemens AG, Rockwell Automation, Honeywell International, Petrolink AS, Sinopec Oilfield Service Corp, The Halliburton Company, Accenture PLC, IBM Corporation and Kongsberg Oil and Gas.
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