BOULDER, Colorado – The global market for communications subscription services (satellite and cellular) and equipment (fiber, point-to-point/point-to-multipoint, Wi-Fi, and handheld radios) for the upstream oil and gas market is expected to reach more than $1.5 billion in 2016 and 2017, according to a new report from Navigant Research.
Historically, satellite service has filled the communications needs of oil and gas operators and their service providers. However, according to the report, “Communications Technologies for Digital Oilfields,” competing and supplementary technologies can now be combined. While satellite is expected to continue to be a leading technology, production sites likely to be operational for several decades may now find better economics in fixed fiber or wireless technologies.
Richelle Elberg, principal research analyst with Navigant Research, said: “The economics of the oil and gas industry have shifted radically over the past 18 months, and with prices expected to stay at historically low levels for the foreseeable future, E&P companies need advanced digital oilfield systems today more than ever.
“With high bandwidth, low latency communications networks in place, E&P companies can not only operate more safely and efficiently, but these systems could become the linchpin for economic viability in the long run.”