The Market for Communications Subscription Services and Equipment for Upstream Oil & Gas Expected to Exceed $1.5 Billion in 2016, According to Navigant Research

A new report from Navigant Research examines communications infrastructure and services for digital oilfield applications, with forecasts for communications services and equipment at drilling and production sites in onshore and offshore environments, as well as for service fleet vessels, through 2025.

As oil and gas (O&G) prices continue to decline, improved safety and operational efficiencies offered by new and emerging digital oilfield applications could mean the difference between survival and bankruptcy for struggling exploration and production (E&P) firms. Through high bandwidth, low latency communications, technologies such as video surveillance, remote conferencing, smart drilling, crew welfare, and automation and control functions will be critical investment areas for companies in the upstream O&G market. Click to tweet: According to a new report from Navigant Research, the global market for communications subscription services (satellite and cellular) and equipment (fiber, point-to-point/point-to-multipoint, Wi-Fi, and handheld radios) for the upstream O&G market is expected to reach just over $1.5 billion in 2016 and 2017.

“The economics of the O&G industry have shifted radically over the past 18 months, and with prices expected to stay at historically low levels for the foreseeable future, E&P companies need advanced digital oilfield systems today more than ever,” says Richelle Elberg, principal research analyst with Navigant Research. “With high bandwidth, low latency communications networks in place, E&P companies can not only operate more safely and efficiently, but these systems could become the linchpin for economic viability in the long run.”

Historically, satellite service has filled the communications needs of O&G operators and their service providers, but today, competing and supplementary technologies can be combined, according to the report. While satellite is expected to continue to be a leading technology, production sites likely to be operational for several decades may now find better economics in fixed fiber or wireless technologies.

The report, Communications Technologies for Digital Oilfields, provides a comprehensive review of the outlook for communications infrastructure and services for digital oilfield applications. The study provides forecasts of drilling and production sites for both onshore and offshore environments, as well as the number of service fleet vessels. Regional considerations are outlined, and the major communications technologies employed in digital oilfields are described. The report also examines the market sizes of both communications equipment and subscription services tied to upstream O&G sites and profiles the key vendors and service providers. An Executive Summary of the report is available for free download on the Navigant Research website.

About Navigant Research

Navigant Research, the dedicated research arm of Navigant, provides market research and benchmarking services for rapidly changing and often highly regulated industries. In the energy sector, Navigant Research focuses on in-depth analysis and reporting about global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Energy Technologies, Utility Transformations, Transportation Efficiencies, and Buildings Innovations sectors. Additional information about Navigant Research can be found at www.navigantresearch.com.

About Navigant

Navigant Consulting, Inc. is an independent specialized, global professional services firm that combines deep industry knowledge with technical expertise to enable companies to defend, protect and create value. With a focus on industries and clients facing transformational change and significant regulatory and legal issues, the Firm serves clients primarily in the healthcare, energy and financial services sectors which represent highly complex market and regulatory environments. Professional service offerings include strategic, financial, operational, technology, risk management, compliance, investigative solutions, dispute resolutions services and business process management services. The Firm provides services to companies, legal counsel and governmental agencies. The business is organized in four reporting segments – Disputes, Investigations & Economics; Financial, Risk & Compliance; Healthcare; and Energy. More information about Navigant can be found at navigant.com.

* The information contained in this press release concerning the report, Communications Technologies for Digital Oilfields, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.

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