The rising economic
prosperity across the globe has boosted the demand for end products from
various industries, including oil & gas. The demand for oil & gas is
surging on a daily basis as its chief application is providing fuel for running
numerous machines and automobiles. Oil & gas exploration and production
(E&P) activities are time-consuming and require huge investments for
extraction and purification of crude oil and shale gas. This puts a huge
economic burden on companies dealing in this sector. Therefore, such companies
are trying to find ways to keep their production cost in control so that they
can price their product appropriately to have an edge over competitors. The
digital oilfield technology, which includes video data analytics, artificial
lift systems, and sensors, is being developed to help improve the drilling and
transport aspects of the E&P activities, thereby offering high return on
investments by increasing the efficiency of production, and at the same time
lowering the operational costs.
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A combination of data analysis
techniques and advanced software is termed as digital oilfield technologies that
are used for improving the profitability of oil & gas production
operations. The digital oilfield technology is used for processes, such as drilling,
reservoir, and production optimization. During 2013–2017, the technology was
used the maximum for product optimization. It refers to numerous activities of
measuring, modeling, analyzing, and implementing actions to improve
productivity in the field, such as a well/reservoir/surface. It ensures
recovery of oil from developed reserves, while at the same time, maximizing
returns. An important part of product optimization is the updation of pipeline
and well model procedures, which is essential for the maintenance of quality of
the optimization-based tool. Owing to the aforementioned factors, the demand
for digital oilfield technologies for product optimization would continue to
grow in the future as well. A study conducted by P&S intelligence has
predicted the digital oilfield technology market to advance at a 4.6%
CAGR in the coming years.
Among all the regions, namely
the Middle East & Africa, North America, South America, Europe, and
Asia-Pacific, the demand for digital oilfield technologies was the highest in
Europe during 2013–2017. The region is home to mature oilfields, and the demand
for this technology was majorly driven by the presence of oilfields in the
North Sea, Norway, the U.K., and Russia. This led to the surging demand for
digital oilfield technologies for enhanced oil recovery techniques and well
intervention.
With extensive E&P
activities going on, the number of onshore oil & gas reserves are rapidly
declining. Therefore, major oil producing companies are shifting their focus on
offshore discoveries. Two of the world’s biggest oil companies, Chevron and BP,
in January 2018, announced that major deep-water discoveries in the North Sea
and Gulf of Mexico were made by them, which is indicative of growing offshore
oilfield exploration activities in the future. For ultra-deep-water projects,
the operating water depth limit for drilling and production goes from few
hundred feet to over 10,000 feet. These projects require highly specialized
equipment to carry out activities at the surface and at the seabed, and digital
oilfield technologies, such as 3D seismic testing, remote sensors, autonomous
drones, and robotics help improve production efficiency. Therefore, these
technologies are extremely helpful for companies venturing into deep water
projects and hostile environments for oil & gas extraction; this can be an
amazing opportunity for the technology manufacturers to maximize their revenue.
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