Smart Well Market Share Analysis
The global oil and gas industry have experienced rapid development, particularly after the significant oil price downturn in 2014. The surge in oil demand from emerging economies, coupled with extended OPEC production cuts, has created a conducive environment for national oil companies and independent players in upstream operations to enhance profit margins. This, in turn, has positively impacted the service quality provided by oilfield service providers. This article explores the current dynamics of the oil and gas industry, focusing on factors driving growth, the increase in well drilling activities, and the role of smart well technologies in offshore exploration and production.
Industry Resurgence and Profitability:
The post-2014 era witnessed a robust resurgence in the global oil and gas industry. Emerging economies' growing demand for oil, coupled with OPEC's extended production cut strategy, has paved the way for national oil companies and independent players to capitalize on profit opportunities within upstream operations. This enhanced profitability has, in turn, elevated the quality of services provided by oilfield service providers, fostering a more dynamic and competitive industry landscape.
Rise in Well Drilling Activities:
The number of wells drilled serves as a crucial metric reflecting industry activity and growth. In Canada, the total wells drilled in 2017 reached 7,550, and projections from the Petroleum Services Association of Canada estimate an increase to 7,900 wells in 2018. Similarly, the U.S. saw an estimated 24,186 wells drilled in 2017, with expectations to reach 27,095 in 2018, according to World Oil. This uptick in well drilling activities is indicative of the industry's commitment to exploration and production efforts.
Offshore Rig Count and Smart Well Technologies:
The growth in offshore rig count is a significant driver for the smart well market. Upstream operators are strategically focusing on offshore locations, pushing boundaries to explore the farthest and deepest areas to optimize oil reserves. Hydrocarbon exploration and production operators are keen on expanding production rates from existing wells and drilling new ones. For instance, in October 2018, INTECH Process Automation Inc announced a project to upgrade major offshore production fields in Nigeria, aiming to reduce flared gas and increase natural gas recovery. The project involves the integration of smart well technologies such as oil and gas flow metering, wellhead automation, alarm management, and more. This integration ensures that all systems are fully synchronized with the facility for optimal performance.
Offshore Rig Count Breakdown:
According to a study conducted by Rigzone in January 2018, the total count of offshore rigs worldwide was approximately 1,300. This count signifies the global focus on offshore exploration and production. The regional breakdown of the offshore rig count underscores the widespread deployment of smart well technologies in these regions.
The global oil and gas industry's resurgence post-2014, fueled by increased demand and strategic production cuts, has created an environment of profitability and competition. The rise in well drilling activities in Canada and the U.S. exemplifies the industry's commitment to exploration and production. The offshore sector, with its focus on optimizing reserves and expanding production, plays a pivotal role in driving growth. The integration of smart well technologies, including advanced metering and automation, further enhances operational efficiency in offshore projects. As the industry continues to evolve, the strategic deployment of smart well technologies will remain a key enabler for achieving sustainability, efficiency, and competitiveness in the global oil and gas market.
