Frost & Sullivan: Rising Energy Lifting Costs and the Decline in 'Easy Oil' Production Drives Adoption of Automation Technologies

Totally Integrated Digital Oilfield (TIDO) is the holy grail of oil and gas exploration and production markets

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Mar 27, 2014, 07:52 ET

MOUNTAIN VIEW, Calif., March 27, 2014 /PRNewswire/ -- In the next two decades, it is expected that over half of the global energy demand is expected to be met from oil and gas supply. As end users continue to invest in oil and gas exploration and production, there is a pressing need for automation providers to evolve their solution offering to target key market challenges such as rapid deletion rates, increase in distributed assets, safety mandates, mobility, reliability, integrity and aging workforces.

Recent research from Frost & Sullivan, Analysis of Global Automation and Control Systems (ACS) Market in the Upstream Oil and Gas (O&G) Industry, finds that the market earned revenues of $5.88 billion in 2013 and estimates this to reach $10.45 billion in 2020. Apart from traditional control and safety systems, market growth for ACS is fueled by the demand for integrated packaged solutions in large greenfield projects and advanced software tools and services in brownfield projects. The influx of wireless systems (Wi-Fi, Wi-MAX, 2G, 3G, 4G, Satellite) is further expected to drive growth in the communication systems segment as end users look to maximize productivity of their assets in the field.

For complimentary access to more information on this research, please visit: http://bit.ly/1hg98pB.

"Limited visibility from field to enterprise- in conjunction with intricate operational processes for upstream oil and gas exploration- has resulted in end users looking for a trusted solutions partner that can collaborate data from individual systems, workflows, equipment and personnel onto a single platform," said Frost & Sullivan Industrial Automation & Process Control Senior Research Analyst Rahul Vijayaraghavan.

As intelligent fields (TIDO), start to gain wide scale acceptance, the ability to integrate disparate systems from the field to a centralized location, will allow end users to optimize production, standardize processes and facilitate streamlined replication across multiple sites.

"A number of companies have jumped onto the bandwagon of TIDO," said Frost & Sullivan Industry Manager Muthuraman "Ram" Ramasamy. "However, not one of them have critically looked at defining the market space and driving out the uncertainties from the equation. As collaborative competition proceeds, further technological advancements and proliferation of such concepts in the market will shine more definition on this pertinent and transformative trend."

From a geographical standpoint, regional hotspots in Brazil, West Africa, Australia, Poland, U.S. and Asia Pacific are expected to witness significant automation opportunities for offshore production owing to localization requirements, and the need for integrated packaged solutions.

"Subsea continues to be the next frontier of the oil and gas market," Ram adds. "This market is currently being catered by a different class of solution providers: Engineering, Procurement, Installation and Commissioning (EPIC). The EPIC solution providers will continue to dominate the underwater factories of the future."

Some of the study highlights include:

Key customers' buying behavior and competitive portfolio analysis
Seven perspectives that a CEO should know about oil and gas upstream markets
Frost & Sullivan's patent-pending competitive advantage and market positioning (CAMP) tool that positions the competitors within the oil and gas upstream markets.

Analysis of Global Automation and Control Systems (ACS) Market in the Upstream Oil and Gas (O&G) Industry is part of the Industrial Automation & Process Control (http://www.industrialautomation.frost.com) Growth Partnership Service program. Frost & Sullivan's related studies include: Global Oil and Gas Industry Scorecard, Russian Oil and Gas Automation market, Automation Modernization Opportunities in the US Refinery Market, and Analysis of the SE Asia and ANZ Automation & Software Solutions Market for the Chemical & Petrochemical Industry. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

To register for a panel discussion on the transformations in the O&G industry taking place May 14, 2014, click here: http://bit.ly/1l4BWpJ

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Analysis of Global Automation and Control Systems (ACS) Market in the Upstream Oil and Gas (O&G) Industry

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SOURCE Frost & Sullivan