The Global Digital Oilfield Market Analysis (2023 - 2030)
The Global Digital Oilfield Market is estimated to reach a market size of USD 35 billion by 2027. It is projected to grow with a CAGR of 6% during the period of the analysis (2022-2027).
The term "digital oilfield" describes technological methods that improve oil recovery from the seabed by utilizing highly developed data analysis and software platforms. The program imitates how an oil and gas field operates by employing workflows and predictive analysis based on information from wellbores, reservoirs, and surface facilities. The decision-making process is sped up by the application of cutting-edge technologies and properly screened data. Oilfield digitization has several advantages, including the effective utilization of mechanical and human resources as well as higher operational cost-effectiveness. It enhances all-around safety, safeguards the environment, maximizes the pace of hydrocarbon production, and minimizes resource waste.
The pandemic's effects have caused digital oilfield operations to be disrupted, with drilling activities being suspended or delayed, oilfield operators ceasing to explore for and produce oil and gas, and upstream capital investment falling. By postponing the development of LNG projects, oil corporations like Shell (Netherlands) and Exxon Mobil (US) are taking action to address oversupply issues. For instance, during the first quarter of 2020, BP suffered a loss of USD 1 billion. The corporation plans to cut its yearly spending by around a quarter, to USD 12 billion. In contrast, due to the present oil price crisis and coronavirus epidemic, Shell has arranged a USD 12 billion financing facility to protect its shareholder dividends. Due to oilfield operators' capital restraint, scheduled maintenance and well construction are currently experiencing significant delays and, in some cases, cancellation. Consequently, COVID-19 has prevented the market for digital oilfields from expanding. Due to the uneconomical nature of certain existing production at current oil prices, the crisis has forced part of it to cease. In some regions of the world, a quick accumulation of oil stockpiles has also depleted the available storage space, even causing prices to fall. The capital assets of some digital oilfield service companies are being restructured as a result of bankruptcy filings.
Key Market Insights:
- The oilfield businesses are digitizing the oilfields to assess the data that has been gathered and determine the equipment's performance status. The advantages of digital oilfields include decreased equipment downtime and real-time monitoring from any place. The machine data in digital oilfields makes managing complicated projects easier. These elements might serve as market growth drivers for digital oilfield technology.
- IT outsourcing, software, IT services & commissioning, and CPM are further categories within the software & service solutions category. The software sector consists of a variety of software products that integrators and service providers offer to oilfield operators. Among other capabilities, it is necessary for data interchange, data management, seismic mapping, remote surveillance, video conferencing, and automation support. Support for business intelligence, knowledge support, and other data-dependent operations are all included in IT outsourcing. External service providers who employ third-party software to manage operations handle IT services and commissioning. Data centers, surveillance hubs, and operation hubs all use computer hardware and technology. The digital oilfield market was dominated by North America and Europe.
- During the anticipated period, the digital oilfield market is anticipated to be dominated by production optimization. The low price of oil, the mismatch between supply and demand, and the slowing growth of demand are the major difficulties that the oil and gas producers are currently dealing with. Operators now depend heavily on the use of digital oilfields to maintain their profit margins. To determine their production allocation based on well-gathering network and process conditions in their surface facilities, businesses are utilizing cutting-edge modeling and analytical technologies. Production allocation not only enables accurate production recording and planning but also makes it possible to better identify production potential in already-existing assets.
- In 2021, the offshore sector held the second-highest market share for digital oilfields. Since offshore areas hold a significant amount of untapped reserves, the corporations active in the market have been investigating offshore locations for oil and gas production. Additionally, compared to onshore oil and gas fields, offshore oilfield activities are more complex. Because of this, offshore applications are less common than onshore ones. Halliburton, Schlumberger, and Baker Hughes are some of the biggest companies active in the offshore industry. Despite shifting oil prices, more offshore digital oilfield services are anticipated to be used due to a growth in deep- and ultradeep-water drilling and production activities as well as a rise in the number of subsea wells that are reaching maturity.
- In 2021, Europe held the greatest market share for digital oilfields worldwide. The UK, Norway, Russia, and the rest of Europe are included in the European market. The majority of the oil production in the area is characterized by mature fields; as a result, businesses seek to speed up digitalization and the adoption of new technologies to revitalize the oil fields. This will probably accelerate the region's oil fields' digitization. The European Unconventional Oil and Gas Assessment (EUGOA) study also includes information for a total of 82 shale formations throughout 38 geological basins that span 21 European nations. The region will have prospects for new field developments thanks to these untapped resources, which will necessitate the digitalization of the oil fields.
Market Segmentation:
- Data Storage Solutions
- Hardware Solutions
By Process
- Production Optimization
- Reservoir Optimization
- Drilling Optimization
- Safety Management
- Others
By Application
By Region
- Europe
- North America
- Asia-Pacific
- Latin America
- The Middle East and Africa
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