Digital oilfield market to grow to near £27 billion by 2026
The digital oilfield market value is projected to be worth £26.76 billion (US$35.8 billion) by 2026, according to a Global Market Insights report.
Rising focus on integrated workflow solutions, followed by the adoption of cloud-based solutions technologies, will boost the industry outlook while ongoing technological advancements to enhance asset management and operational efficiency will further drive product adoption.
Production optimisation from the £6.73 billion digital oilfield market will see the integration of field data with existing production management applications, to facilitate a precise and reliable analysis of production parameters.
Significant technological development has improved the recovery rate of a large number of fields which were declared economically unfeasible and non-profitable.
North America, forecasted to dominate the digital oilfield market, will register over 7 percent CAGR until 2026 and the digital oilfield market by reservoir optimization is projected to grow at over 8 percent in the same period.
Increasing deployment of enhanced oil recovery systems followed by rising number of mature gas fields across Middle East will fuel the product adoption.
In addition, availability of enhanced solutions including reservoir monitoring control, development planning coupled with equipment management including actuating devices, sensors, and smart alarms have resulted in optimisation of reservoir expansion.
Wide applicability of IoT based systems to collect data across smart wells, drilling and reservoir monitoring sites will foster industry expansion.
Growth drivers will be volatile crude oil & gas prices, increasing US exploration and production activities, growing number of mature fields in Europe and digital technology investment in the Middle East and Asia Pacific.
Hydrogen Map shows 57 projects are operational globally
Currently there are 57 projects operational and a further 58 will be in development by the end of 2021. Construction of another 92 are slated to begin in the next decade.
Western Europe and Asia Pacific, which account for more than 83% of known low-carbon hydrogen projects, are driving growth, but US projects are rising. The US is well positioned to lead the green hydrogen economy due to the abundant, low cost renewable energy sources needed to produce it, such as wind, solar, hydropower and nuclear, according to McKinsey.
A hydrogen production facility being built at the Tabangao refinery in Batangas, Philippines is slated to be the first to generate blue hydrogen, in which hydrogen is produced using fossil-fueled sources but the resulting carbon emissions are captured, stored or reused.
"Low carbon hydrogen and ammonia production is the key to decarbonising the hard-to-decarbonise sectors like transportation, industry and buildings”, said Pillsbury energy partner and Deputy Energy Industry Group leader Elina Teplinsky.
"This map will be a helpful tool for a broad audience of policy makers, industry participants and investors, sustainability analysts, advocates and journalists tracking the development of low-carbon hydrogen projects and encourage dialogue between those parties to further accelerate adoption of this transformational technology."
"With governments and enterprises worldwide increasingly prioritising decarbonisation goals, we are laser-focused on helping clients capitalise on the enormous opportunities that the ongoing energy transition presents,” said partner Sheila Harvey, who serves as firm-wide Energy Industry Group leader at Pillsbury and co-leads the firm’s Hydrogen practice.
Hydrogen practice group co-leader Mona Dajani, who heads Energy & Infrastructure Projects and Renewable Energy teams, said energy demand is driving significant innovation in the hydrogen space.
"Green hydrogen projects, which combine renewable power sources with hydrogen production, are unlocking new possibilities for regions previously constrained by weak grid connections and transmission bottlenecks and marking a crucial step in the development of the green hydrogen business case," she said.
New Australian clean energy storage startup Endua aims to build hydrogen-powered energy storage and deliver sustainable, reliable and affordable power.
Endua is backed by $5 million in funding, technology and industry expertise from CSIRO, Australia’s national science agency; Main Sequence, the deep tech investment fund founded by CSIRO; and Ampol, the country’s largest fuel network.