Market Trends of Digital Oilfield Services Industry
This section covers the major market trends shaping the Digital Oilfield Services Market according to our research experts:
Reservoir Optimization Segment to Dominate the Market
The reservoir optimization sub-segment was expected to dominate the global digital oilfield services market with a significant share of 40% in 2020.
Reservoir optimization involves handling the data acquired during seismic surveys, geophysical evaluation, reservoir fluid evaluation, drilling data, and production data.
Big data analytics services help in analyzing the data during this process in many ways, such as finding trends in the data and identifying anomalies, among others, which in turn, helps in reducing uncertainties along with saving time in the process by improving the productivity of the workforce, and more importantly, enabling better decision making.
The decisions made during reservoir optimization affect the field's production life. Thus, reducing mistakes in the process can save a considerable amount of money for the operating company throughout the field's production life.
Growing exploration activities in the offshore region and increasing production activities in the Permian region of Texas and the Federal Gulf of Mexico demand reservoir optimization to ensure maximum production. For instance, in September 2020, Barron Petroleum announced a discovery well in Val Verde County, Texas, where they found an estimated 417 (Billion Cubic Feet) Bcf, approximately (74.2 million bbl), in oil and gas reserves.
Therefore, with the increase in demand for reservoir optimization, the global digital oilfield services market is expected to grow during the forecast period.
North America to Dominate the Market
North America dominated the digital oilfield services market in 2020 and is expected to continue its dominance over the coming years. The region consists of major oil and gas countries, which have some of the largest petroleum reserves in the world, which enables companies to use digitalization techniques to enhance production efficiency.
The oil and gas industry is growing in this region; hence, many mature oilfields are expected to become digitalized over the coming years and thus, drive the global market.
In terms of policy and government support, the US federal government launched an auction of more than 80.9 million acres to be leased for oil and gas production in 2021.
Furthermore, the recent development of shale plays, horizontal drilling, and fracking resulted in a massive increase in the country's demand for the deployment of digital oilfield services. For instance, in 2020, extensions and discoveries of 92 million barrels of new proved crude oil reserves were reported, mostly from operators drilling horizontal wells in the Uinta Basin, Colorado, US.
These developments are expected to drive offshore exploration and production activity, and hence, the demand for digital oilfields solutions is likely to increase in the future.
Moreover, increasing offshore field development activities in the Gulf of Mexico and compliance with health and safety regulations are expected to drive the digital oilfield services market during the forecast period in the region.
