United States
Digital Oilfield Market is anticipated
to grow at a steady pace in the forecast period,
2024-2028. There is an increasing focus on environmental sustainability and
reducing carbon emissions in the oil and gas industry. Digital oilfield
technologies help operators optimize energy consumption, reduce greenhouse gas
emissions, and improve environmental performance by identifying the problems. In
2022, the updated U.S monthly crude oil supply data was published; according to
which the US is producing 786,000 barrels per day (b/d).
Digital
oilfields enable oil and fuel agencies to
remotely detect and control essential activities at production centers. These
technologies aim to enhance productiveness and performance in exploration and
production (E&P) through minimizing gadget downtime and improving production
optimization which is especially important in present scenario where oil and gas
companies are seeking to streamline their charges to get over the Covid-led
power demand shock.
Adoption of Visualization Tools and AI/ IoT in Oilfield
Digital Oilfield technology has gained momentum with the
arrival of the Internet of Things (IoT). They use artificial intelligence (AI),
predictive analytics, and visualization tools to generate statistics-pushed
insights in real time to hurry up choice-making approaches. The adoption is
particularly noticeable in more recent tasks that use the cutting-edge
technologies and system to extract hydrocarbons. Companies are trying to
automate as many methods as viable to mitigate operational risks.
Creating a virtual oilfield could also help oil and gas
companies adopt more environmentally friendly procedures. For instance, by detecting oil leaks, artificial
intelligence and predictive analytics can help organizations reduce damage. Oil
and petrol businesses may automate maintenance and manage equipment more
effectively while also continuing to develop by investing in virtual oil area.
This could make way for improved petrol performance and delivered oil and fuel
costs. Oilfield
service providers and commercial device manufacturers, who supply virtual
solutions and offers to address difficult real-world problems, fundamentally
control the competitive environment of the digital oilfield.
Real time Field Management in DOF
The usage of remote oil sands facilities has increased
via machine-to-machine interfaces and real-time communication gaining traction,
which allow central specialists to troubleshoot and monitor daily operations.
Additionally, the utilization of IoT devices for monitoring reservoirs, smart
wells, and drilling sites would be improved through ongoing industry
collaboration between digital oilfield technology suppliers, IT service
providers, and hardware manufacturers. The utilization of IoT devices for monitoring
reservoirs, smart wells, and drilling sites would be improved via ongoing
industry collaboration between digital oilfield technology suppliers, IT
service providers, and hardware manufacturers. It is anticipated that this will
effectively collect real-time data and enhance operating performance from upstream
to downstream sectors. Industry expansion is anticipated to be helped by the
availability of cutting-edge products like reservoir supervisory
control, reservoir characterization as well as cutting-edge machinery like
actuators, smart alarms, and sensors.
Additionally, software for digital oilfield
production captures the behavior of the oilfield on the PC. For the course of
the assets' entire lives, the applications serve as an online management system
for the oil and gas company's assets. The digital
oilfield solution from The Petroleum Experts offers an enterprise-level,
vendor-neutral method for displaying reservoir, wellbore, and facility
information.
US Central Government Initiatives Towards Oil &
Gas Extraction
The US federal government conducted an auction of
more than 80.9 million acres to be leased for oil and gas extraction in 2021,
with support from the policy and government plans. Operators are searching for
novel approaches to embrace the "digital oilfield age" for more
effective and economical operations in the current market as the digital
revolution spreads across nation. Quite apart from the fact that digitization
has reduced overall OpEx and CapEx (capital expenditures) costs and assisted
operators in weathering economic downturns.
During the period of 2017- 2035, total
capital expenditures (CAPEX) for the construction of oil and gas infrastructure
will range from USD 1.06 to USD 1.34 trillion. Over the projection, these investment levels
translate to an average annual CAPEX of USD 56 to USD 71 billion (Exhibit
ES-2). This covers investments in both new and existing oil and petrol storage
facilities, oil producing facilities, refineries, and other infrastructure.
Hence, the country's demand for the adoption of digital oilfield services has
also significantly increased because of the recent development of shale plays,
horizontal drilling, and fracking technologies. For instance, 92 million
barrels of additional proven crude oil reserves were discovered and extended in
2020, largely by American operators drilling horizontal wells. These expansions are expected to drive
offshore survey and production activity. Hence, the demand for digital
oilfields solutions is anticipated to increase in the future.
Interruption in the Decision-Making Process
One of the main obstacles for the oilfield sector
is the time-consuming nature of real-time data collecting and useful analysis.
It is challenging to compile extensive instructive data and present it as
market-relevant information for wellheads. The gathering and analysis of the data require
professional personnel with the appropriate experience and knowledge. The oil
and gas industry's major players are concentrating on making new discoveries by
utilizing the potential of precise and reliable data. Analytical instruments
that are used for examining and analyzing data and define the potential of
wellheads are costly processes. This means that the market expansion in the
anticipated time frame is constrained by the delay in decision-making processes
caused by analytical tools.
Recent Developments
- The recently announced joint venture
(JV) Sensia was concluded in October 2019 by oilfield services provider
Schlumberger and industrial automation and information solutions provider
Rockwell Automation. Sensia is the first digitally enabled complete automation
solution for the oil and gas sector. To meet the ever-evolving requirements of
the energy sector, the joint venture would make use of Schlumberger's and
Rockwell Automation's substantial oil and gas expertise. Sensia aims to employ
its staff of about 1,000 individuals to serve consumers in 80 different
countries and generate yearly sales of USD 400 million. Sensia conducts its business on its own. In their
joint venture, Rockwell Automation holds a 53% stake, while Schlumberger holds
a 47% stake.
- On December 2021, Kuwait Oil Company
("KOC") announced granted Weatherford International plc a three-year
digital oilfield contract. The contract is meant to assist the company'
integrated enterprise excellence platform and digital transformation plan.
- According to the High Case, U.S. oil
production would expand quickly, reaching upwards of 12 million barrels per day
by 2035. Much more noticeable growth is observed in natural gas production,
which will rise from its current daily average of around 72 billion cubic feet
to a range between 110 and 131 billion cubic feet by 2035. Throughout future,
the production of natural gas liquids (NGL) will follow the production of gas.
- Refinery output in the U.S. is
anticipated to increase from its present level of just over 16 million barrels
per day to between 17 - 19 million barrels per day by 2035. Oil sands
production from Western Canada and tight oil development in the United States
are the main drivers of increased oil refining.