WELLESLEY, Mass., Dec. 13, 2017 (GLOBE NEWSWIRE) — Advances in exploration, downhole and digital technologies are driving moderate growth in the global market for advanced exploration and downhole technology. In a new report, Advanced Oil and Gas Exploration and Downhole Technologies: Global Markets to 2021, BCC Research estimates this market will increase at a compound annual growth rate (CAGR) of 5.8% to reach $233.4 billion in 2021.
The majority of the easy-to-extract oil reservoirs have been exhausted, and nearly all remaining global reserves are in the “tough oil and gas” category, requiring advanced exploration and downhole extraction technology to be profitable at a time when the per-barrel price hovers in the $50 to $55 range. Advanced exploration and downhole technology will enable access to these resources in a more cost-effective manner, which will positively impact the extraction of resources that are currently expensive and complicated to recover.
The oil and gas extraction industry’s search for cost-cutting solutions is yielding a digital technology boom. Major upstream oil and gas companies are incorporating the advantages of innovations in industrial Ethernet connectivity and advanced analytical software to enhance the full value of their asset data, as well as to propagate high-performance in petroleum production. Some companies are using lasers and other high-tech equipment and data analytics before they drill to ensure new wells deliver the crudest for the dollars spent. By 2021, as much as 50% of all oil and gas assets will be connected digitally, as companies plan to boost spending on digital technologies that focus on big data and mobile devices for roustabouts.
Research Highlights
- Currently, only 3% to 5% of all oil and gas assets (e.g., wells, equipment used to drill and frack and maintain production) are digitally connected.
- The average ultimate oil recovery (UOR) in different countries and regions ranges from 25% to 40%.
- Production investments will increase to reach $365 billion in 2021, up from $284 billion in 2016.
- Horizontal drilling has increased by 50% in Russia in recent years as a means of boosting production and increasing cost efficiency.
“Using advanced seismic exploration techniques with technologies such as portable X-ray fluorescence analyzers, hydraulic fracturing and horizontal drilling, and resources that include depleted wells, tight oil and gas, shale oil and gas, and coal bed methane have transformed the U.S. energy landscape by facilitating access to previously unavailable reserves. This success in the U.S. with unconventional resources and marginal reserves has prompted other countries to reconsider developing their own unconventional and marginal resources and assessing how soon this can be achieved,” said Edward Gobina, BCC Research analyst and author of the report.
About BCC Research
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