Enjoy complimentary customisation on priority with our Enterprise License!
Technavio’s market research analyst predicts the global smart well market to grow steadily at a CAGR of above 4% by 2021. One of the primary drivers for this market is the migration of drilling into unconventional areas. The most striking outcomes of the current generation of oil and gas exploration is the reaffirmation of the fact that the era of easy oil is coming to an end. This has resulted not only in inflated costs of hydrocarbon acquisition, but has also displaced operations geographically. The generally established areas such as the Middle East, Gulf of Mexico, and North Sea areas have started witnessing reduction in the rates of production in the past few years. This has led the energy companies, with an insatiable thirst for new resources, to move out to areas like Yamal basin in Russia, Andaman Sea in the Indian sub-continent, and most significantly, regions in the Arctic and Antarctic. The high dependence of the global economy on hydrocarbons will augment the growth of this market during the forecast period.
One of the latest trends gaining traction in this market is the IT integration and digitization of oil fields. The recent fall in oil prices has reduced the profit margins for oilfield services companies. This has induced companies to leverage the use of IT to improve efficiencies and reduce operational losses. Integrating IT with software such as total asset managers, has allowed for continuous monitoring to find any irregularities in the performance of equipment that can be fixed immediately. This tracking method has substantially reduced the maintenance time and devices failures, which resulted in monitory losses and delay in the completion of projects. Digital oilfield technologies are gaining importance, as they allow decision making and remote executions with the objective to maximize production, improve capital efficiency, and minimize safety hazards.
At present, the global smart well market is concentrated in nature with large players having the least regional presence occupying larger market share. The market players involved in the smart well market adopt multiple strategies to gain a competitive advantage over other players in the market. The drilling sector is one of the core pillars of the upstream oil and gas sector. This strategic positioning in the global market space has influenced the investment outlook for the sector by making it dependent upon the overall state of the entire oil and gas value chain. The recent collapse of the global oil market, driven by the imbalance in the demand-supply dynamics, has compelled the profitability of upstream activities to the brink. However, the market is expected to correct itself from 2017 onwards, the long-term survival in the market is highly contingent upon the business decisions taken in the current timeframe.
Leading vendors in the market are –
The other prominent vendors in the smart well market include Statoil, Salym Petroleum, Woodside Energy, Emerson process management, INTECH process automation, Nabors Completion & Production Services, RPC Inc., Superior Energy Services, Trican Well Services, and Welltec International AS.
During 2016, the onshore segment dominated the smart well market and accounted for a major part of the overall market share. This dominance is attributed to the increasing drilling activities in oil fields propelled by the global rise in energy demand. To bridge this rising demand for oil and gas, the vendors are compelled to explore and drill deeper and more remote reservoirs with varied and harsh geographical environments. Furthermore, the rising trend to focus on unconventional reserves such as shale gas and tar sands reserves will also stimulate the growth of the segment in the coming years.
In this market study, analysts have estimated the Americas to dominate the smart well market during the forecast period. The US is the major revenue contributor to the smart well market in this region. Owing to the fall in oil prices, major companies in the region have increased the production from existing reserves. They are also making fewer investments in new drilling processes. The high exploration and production (E&P) activities due to technological developments have been producing greater quantities of oil and gas from unconventional sources. Sources such as deep water productions will drive the smart well market in the Americas over the next few years.
Technavio also offers customization on reports based on specific client requirement.
PART 01: Executive summary
PART 02: Scope of the report
PART 03: Market research methodology
PART 04: Introduction
PART 05: Market landscape
PART 06: Market segmentation by application
PART 07: Geographical segmentation
PART 08: Market drivers
PART 09: Impact of drivers
PART 10: Market challenges
PART 11: Impact of drivers and challenges
PART 12: Market trends
PART 13: Vendor landscape
PART 14: Key vendor analysis
PART 15: Appendix
PART 16: Explore Technavio
Tags: oil drilling, well completion, oil exploration, oil rig companies, oil and gas market outlook, energy market growth,
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.