At the time of filing this report, oil was trading at around $51.67 per barrel, and things still look glum in the energy markets. As mentioned at the time of filing the previous report, TechSci Research experts have been vindicated on their astute observations vis a vis OPEC’s flagging efforts to end the global oil glut via production cuts. Global digital oilfield market still very much remains the need of the hour. 

Oil Prices and the Need for Global Digital Oilfield Market

While TechSci’s experts claims about the bottoming out of the oil market wasn’t entirely correct, (oil did however, touch $45 briefly in June) a look at the 6-month spread of crude oil shows a stark downward trend in oil prices.

TechSci Research report “Global Digital Oilfield Market, Competition Forecast & Opportunities, 2012–2022” talks in-depth about the unique, and somewhat schizophrenic character of the current energy market as it stands today.

To extrapolate, energy demand is the highest that it has ever been in history and oil prices have been at historic lows, something unbelievable a decade back. This is where the global digital market becomes important.

Given that GCC hegemony has been broken due to entry of multiple major players, the onus is on oil companies to streamline and optimize, rather than drill blindly. Global digital oilfield market solutions, therefore, become the need of the hour, as data becomes the new battleground on which oil giants compete.

If, hypothetically speaking, production cut targets are not met, and OPEC countries back out of them, then these countries and the energy companies operating within them must deal with even more competition rather than the cohesive entity that was once OPEC.

Again, the victory will not be won by the one who extracts the most oil, but by the one who does it the most quickly and efficiently. Global digital oilfield market solutions and their real-time data capabilities thus become essential.

TechSci Key Takeaways: Global Digital Oilfield Market

To further highlight the schizophrenia of the oil market, TechSci Research exports further delve into the aforementioned report, specifically about the trade-off companies face when they utilize global digital oilfield market solutions. An example:

It is extremely obvious that the promulgation of the global digital oilfield market is incumbent upon the overall health of the energy market in the world. The energy market can only purchase said solutions if it has a surplus somewhere.

However, this isn’t the case. In fact, OPEC countries are burning through their forex reserves to keep oil prices at a point where they can even break even, much less register a surplus. And yet, r & d activities pertaining to global digital oilfield market solutions are on the rise…

Schlumberger, a global digital oilfield market solutions leader, as of 29th February 2016, held rights to approximately 640 patent families (i.e., approximately 4,800 patents in force in more than 90 countries), mainly in offshore and subsea (subsea pipes, umbilicals, flexible systems, platforms and equipment) segment.

Similarly, Halliburton, one of the most prominent players operating in global digital oilfield market spent around USD22.5 million on research and development in 2015.

As mentioned previously, companies are smart enough to understand that simple production cuts with a bloated and efficient machinery will simply delay the inevitable in terms of spreading OPEC countries’ forex reserves for long enough to delay a default situation.

However, if countries want to seriously try and diversify their economies, they must start by optimizing their oil efficiencies. And this where the global oilfield market becomes so very important. 

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