Connected Oil Field Market size is projected to witness exponential growth between 2022 and 2028 owing to the rapid digitization and integration of smart technology. Increasing exploration as well as drilling activities across the globe will also boost the market growth. Connected oilfield is a concept that combines business process management with new and advanced digital technologies, to automate workflows for reducing costs and maximizing productivity, while minimizing the risks related with oil and gas operations.
The oil & gas sector is moving towards digitization through changing conventional business models into smarter operations. Right from the equipment utilized in oil exploration and drilling and extending to automation, data security, remote monitoring as well as logistics, connected systems play an important role. In fact, remote monitoring solutions could now unlock well diagnostics along with other real-time information produced by innumerable intelligent devices. With this augmented data access, operators of oil and gas fields could now translate key asset-management information to improve production, reduce downtime, well visits, unplanned maintenance and other operational costs.
Connected oil field market share from offshore segment is likely to expand at a significant rate during the forecast period. This growth is ascribed to the adoption of IoT technology. At present, IoT and next-gen connectivity together bring various enthralling opportunities for reliable as well as cost-effective offshore monitoring.
North America connected oil field market is poised to chalk out an upward growth trajectory. The U.S. held a substantial share of the regional market, due to the considerable exploration activities in recent years. In 2019, the oil production edged at more than 17 million bpd, giving the country an 18% share of the overall global output. In the same year, around 69% of the total crude oil production in the U.S. came from Colorado, Oklahoma, New Mexico, North Dakota and Texas.
Major players operating in the connected oil field market are Baker Hughes GE, National Oil Varco, Larsen & Toubro Infotech Limited, Weatherford International, PLC, Halliburton Company, Superior Energy Services, Inc., Weir Oil and Gas, Schlumberger Limited, China Oilfield Services Limited, and Welltec.
These participants are focused on various strategic initiatives such as mergers, collaborations, acquisitions, partnerships, and novel product launches to improve their position in the market. Citing an instance, in June 2021, Schlumberger reportedly announced an enterprise-level deployment of advanced digital solutions for Petronas, the Malaysian oil & gas major, to accelerate the field development planning of the oil firm. The deployment is integrated with OSDU Data Platform and is enabled by Schlumberger’s DELFI cognitive E&P environment.
The coronavirus pandemic has had a severe impact on the global oil & gas sector. Demand for fossil fuel dropped severely in 2020 as people were isolated in their homes and numerous leading oil & gas companies had to temporarily shut down their production facilities. As countries imposed complete or partial lockdown strategies to curb the spread of the infection, it did not just affect the production, but also disrupted the supply chain. The prices of crude oil also witnessed the impact of the pandemic.
Many organizations believe that the recovery for the oil and gas sector will take a longer time, with many economies suffering from new waves of the coronavirus. However, experts believe oil and gas companies should focus not only on the current recovery of the sector, but also long-term opportunities and enhance organization capabilities, indicating a positive outlook for the market.