A new report from energy industry analyst Technavio says the future of the oil and gas business is about embracing real-time information in oilfield services.
From the abstract of their report, entitled Smart Oilfield IT Services market from 2015-2019:
Furthermore, the volume and detail of data generated in exploration and production need to be put into better use so that the O&G companies can gain value from the same and act upon the insights generated by data produced during exploration and production.
They see the growth of just the IT services in these projects (they don’t consider the growth of spend on specific technologies) at a healthy 5.93% CAGR, driven by tangible benefits to the business:
The implementation of these services enables companies to increase production, improve recovery rates, and cut capital and operating expenses. In addition, the time-to-value also gets enhanced with the implementation of these services.
This is what we’ve heard from customers and prospects in the energy industry in general, and specifically within the oil and gas sector. The Internet of Things is generating higher volumes of more granular information that can improve decision making and open up new business models based on real-time supply and demand.
It’s an exciting time for this rapidly changing industry.