The oil & gas analytics market grows due to the increase in the oil & gas sector. The global oil & gas business is at a fork in the road due to diminishing oil & gas reserves around the world. New difficulties occur, and traditional methods are used to overcome them. The rise in global demand for fuel and the increase in competition, financial resources, and public scrutiny and regulations are only a few major difficulties that must be overcome. Crude oil price volatility is caused by the decline in crude oil reserves as well as dynamic supply and demand. For new forms of hydrocarbons, new exploration and extraction techniques are on the rise. The oil & gas industry's new technologies generate a massive amount of operational and financial data. The employment of diverse analytical engines aids in the conversion of ever-increasing amounts of data into profitable insights. In the oil & gas industry, enhanced business intelligence and analytics tools contribute to more efficient and productive operations. As a result, there is a growing trend in the oil & gas analytics industry, with many oil businesses converting their traditional processes into an analytical performance-driven strategy. To meet the industry's issues, oil & gas businesses have quickly shifted their focus to modern information and communication technologies (ICT). The operations of oil & gas firms' upstream, midstream, and downstream segments create massive amounts of data (Big Data).
This data might be converted into critical information and insights, allowing businesses to increase their efficiency, productivity, and profitability. Advanced technologies such as business intelligence, big data management, and analytics have turned traditional management into fact-based, data-driven decision-making. Poor data quality, data integration, data irrelevancies, data ownership, and limited visibility are all issues that oil firms encounter. To meet corporate data difficulties, new-age big data analytics solutions have transformed a fragmented framework into a unified data architecture.
COVID-19 Impact Analysis
- The introduction of COVID-19 affected the global oil & gas analytics market since the pandemic halted refinery operations globally, limiting project building, exploration, and production activities.
- Following the first lockdown, some activities were permitted, but only under strict conditions and with strict adherence to particular rules, such as the refinery being operated at a lower capacity, requiring less labour, and social distancing being maintained on the site. Furthermore, sales in the industry decreased in the first months of the year as a result of the lockdown, which forced retailers to close for a period of time.
- During the year, countries globally that are major consumers of oil, gas, and petroleum-related products were put on lockdown, resulting in a drop in global oil prices.
- Several countries saw an oil price war as a result of the negative impact on the sector. For example, Russia and Saudi Arabia engaged in an oil price war after Russia refused to curtail production in order to keep prices stable.
- These factors affected the oil & gas industry adversely and this a direct negative impact on the oil & gas analytics market growth.
- With industries recovering after the pandemic gradually, the oil & gas business is expected to operate in full capacity and this has provided the opportunity for oil and analytics market to gain the pace.
Top Impacting Factors
The employment of analytic tools is useful in the oil & gas business for collecting real-time data at a lower cost and improving production efficiency. The growth of the oil & gas analytics market is expected to be aided by the construction of oil & gas factories and rise in demand for petroleum products. Strict government safety regulations for oil & gas operations help the business thrive. The oil & gas market is driven by increased oil & gas exploration and production operations. Oil & gas analytics aid in the extraction of unconventional fuels. To come up with optimal extraction methods, companies are investing heavily in research and development, as well as the adoption of oil & gas analytics software. Unconventional fuel production is thus likely to boost the global oil & gas analytics market in the near future. However, poor data quality and resistance to data integration is expected to stymie the growth of the oil & gas analytics market. Low data quality is due to a number of factors, including current technological resources and methods. As a result, data integration creates a significant barrier in terms of data quality and the ability to interpret data. Analysts, managers/senior managers, and other professionals are in charge of managing analytics by function or department. This prevents end-to-end workflows from being integrated. The oil & gas business are continually confronted with resource optimization and supply-demand imbalances. In the face of low oil prices and the rise in E&P costs, firms in the oil & gas industry have begun to implement novel technology and techniques to improve operations and profits. Adoption of oil & gas analytics solutions is one of the most practicable and practical answers to the oil & gas industry's problems. Most of the major players in the oil & gas industry have begun to use analytics services to optimize resource allocation and close the demand-supply gap. This is expected to almost certainly present more lucrative opportunities for the oil & gas analytics market.
Market Trends
- Hitachi, Ltd. and Microsoft Corp. established a multiyear strategic agreement in June 2020 to drive the digital transformation of the manufacturing and logistics industries in Southeast Asia, North America, and Japan.
- Capgemini announced in July 2020 that it has been chosen as the Financial Services Compensation Scheme's key technology partner (FSCS). Capgemini is expected to employ FSCS to foster innovation through the use of digital, cloud, and application technologies under the new five-year deal.
- Nesh, a firm located in the U.S., is developing an AI-powered chatbot for the whole oil & gas value chain. Nesh, the startup's virtual assistant, gathers data from a variety of sources and uses natural language processing to answer industry-related questions (NLP). Nesh helps oilfield operators to solve a wide range of difficulties. In addition, the chatbot gives pertinent insights and discovers fresh knowledge from the data, allowing on-site operators to make quick and informed judgments.
- Phoenix RDS, a British firm, uses data analytics to deliver drilling, production, and waterflood optimization solutions. Pheonix RDS also offers optimization techniques for improved oil recovery in addition to its reservoir modelling algorithms (EOR). These technologies help oil & gas asset owners and operators by increasing reservoir sweep efficiency and lowering injection volume requirements. This allows oil corporations to cut costs even further while increasing asset value.
- Welligence is a startup established in the U.S. that provides big data and AI solutions to the oil & gas industry. Engineers can use the company's AI platform to access data analytics dashboards, visualization tools, production projections, and valuation models. Welligence's platform includes a subscription-based Data-as-a-Service (DaaS) that allows users to integrate data from any source. In general, the platform enables engineers and energy operators to develop better asset or company-level strategies.
Key Benefits of Report
- This study presents the analytical depiction of the oil & gas analytics market along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the oil & gas analytics market share.
- The current market is quantitatively analyzed to highlight the oil & gas analytics market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed oil & gas analytics market analysis based on competitive intensity and how the competition will take shape in the coming years,
Oil & gas Analytics Market Report Highlights
| Aspects | Details |
 By Service |
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 By Deployment Mode |
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 By Application |
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 Key Market Players | Hewlett Packard Enterprise Development LP, Northwest Analytics,Inc, Accenture, SAP SE, LLC SAS Institute Inc, Microsoft Corporation, IBM Analytics, Oracle Corporation, TABLEAU SOFTWARE, Cisco Systems, Inc. |
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