The oil & gas industry relies significantly on information and communication technology to meet its business goals. It is necessary to connect and integrate business processes, organizations, and geographies to manage future oil and gas scenarios and effective production of existing reserves. Connected oilfield can be defined as the integration of operations, which uses information technology to manage and control equipment, move functions and personnel onshore, and manage processes remotely. Integrated operations help facilitate interactions that deliver business value while simultaneously reducing health, business, environmental, and safety risks. The intelligent network facilitates seamless integration of information, data, and work processes. It creates a virtual environment where effective collaboration and communication can be established between experts of the industry, regardless of the physical location of the concerned person. The benefit of introducing integrated operations in the oil & gas industry was examined by the Cambridge Energy Research Associates (CERA) on the data obtained by reservoir, surface, and downhole facilities. The result showed improvement in hydrocarbon recovery of about 1% to 7%; drilling cost reduction of about 5% to 15%; production acceleration of about 1% to 6%; and progression in operational efficiency of 3% to 25%.

The global connected oilfield market is anticipated to witness significant growth during the forecast period due to the increase in exploration & drilling activities across the globe. Rise in production of crude oil, high crude oil demand, and growth in well completion are the factors expected to drive the connected oilfield market in the next few years. Furthermore, increase in demand for oil and gas in emerging economies of Asia Pacific such as India and Thailand is anticipated to boost the connected oilfield market in these countries. According to a research conducted by Oxford Economics, adoption of integrated systems in the oil & gas industry can help increase the global GDP by 0.8%, which is around US$ 816 Mn, by 2025.

Implementation of oilfield services and Internet of Things in connected oilfields can develop a synergy between organizations. This is estimated to reduce the communication gap among workers, lower operation costs, and enhance producibility. Adoption of connected oilfield is projected to augment instant transmission of real time data, helping O&G companies negate time-zone differences and overcome geographical barriers, further strengthening industrial outlook. Increasing production efficiency, ease in finding location of hydrocarbons, and faster decision making are the factors likely to augment the connected oilfield market during the forecast period.

In terms of geography, the connected oilfield market in North America held significant share in 2016. It is anticipated to register strong growth during the forecast period. As U.S. witnesses significant increment in the number of rig count which resulted in the completion among global players to reduce the cost of production of oil & gas. Discovery of largest hydrocarbon reserves in Permian Basin is expected to augment the application of Internet of Things, thus propelling the connected oilfield market during the forecast period. The connected oilfield market in Europe and Asia Pacific is anticipated to witness growth owing to the decrease in the amount of drilling activities due to government sanctions. The market in Latin America is estimated to register prominent growth owing to its dependence on the oil & gas industry. This is projected to further boost the connected oilfield market in the near future.

Key players operating in the connected oilfield market are CISCO, Cognizant, TELUS Communications Company, and Redline Communications. Companies that adopted connected oilfield are Halliburton, Weatherford, Royal Dutch Shell, National Oilwell Varco, and Schlumberger Limited. For instance, in 2015, Shell reported a saving of US$ 5 Bn by integration of its 50 assets across the globe. In 2016, Shell Nigeria reported saving of more than US$ 1 Mn through integrated networks serving the entire oilfield. 

This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.

Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:

  • Customer Experience Maps
  • Insights and Tools based on data-driven research
  • Actionable Results to meet all the business priorities
  • Strategic Frameworks to boost the growth journey

The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.

The following regional segments are covered comprehensively:

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • The Middle East and Africa

The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.

Below is a snapshot of these quadrants.

1. Customer Experience Map

The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.

2. Insights and Tools

The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.

3. Actionable Results

The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.

4. Strategic Frameworks

The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.

The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:

1. What can be the best investment choices for venturing into new product and service lines?

2. What value propositions should businesses aim at while making new research and development funding?

3. Which regulations will be most helpful for stakeholders to boost their supply chain network?

4. Which regions might see the demand maturing in certain segments in near future?

5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?

6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?

7. Which government regulations might challenge the status of key regional markets?

8. How will the emerging political and economic scenario affect opportunities in key growth areas?

9. What are some of the value-grab opportunities in various segments?

10. What will be the barrier to entry for new players in the market?

Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.

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Connected Oilfield Market