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Convergence Impact on Oilfield Services - Disrupting a $250 Billion Market

  • ID: 3699956
  • Report
  • April 2016
  • Region: Global
  • 114 Pages
  • Frost & Sullivan
Fragmented Ecosystem Looks at Convergence Amid Volatile Oil Prices


  • BP
  • Cameron
  • GE Predix
  • IBM
  • Mobility
  • SAP SE
As low oil prices give way to dwindling profit margins, strategies dictate organizations to curb inefficient practices and replace them with technologically advanced smart solutions. Connected oilfield services facilitate reduced drill time and increased productivity. The digital transformation has shifted focus to chasing efficiencies from the traditional one of chasing barrels.

Business model disruptions to sell performance instead of equipment have taken over, as analytics becomes a strong part of the automation portfolio. The ICT industry has taken a leap of faith with the introduction of cognitive technologies through virtual assistants in oilfield services, taking artificial intelligence applications to a higher level.

Key Findings:
- Oilfield services are undergoing a digital transformation to drive out decades of accumulated wastes from obsolete processes.
- The next generation of oilfield services will witness unparalleled Information and Communications Technology (ICT) convergence, making digital service platform services
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  • BP
  • Cameron
  • GE Predix
  • IBM
  • Mobility
  • SAP SE
1. Executive Summary
  • Top 5 Things a CEO Should Know
  • Executive Summary
  • Oilfield Services Market-5 Industry Trends
  • Connected Oilfield Services Market-The Next Big Thing(s)
  • O&G Industry-Snapshot of Top Opportunities for AI
  • Convergence of People, Process, and Technology
  • Connected Oilfield Services-Game Changers
2. Mega Trends to Micro Booms-Definitions and Tie-ins
  • Mega Trends to Micro Booms
  • Convergence of Mega Trends
  • Micro Booms-Actionable Insights Framework
3. Introduction-Scope and Segmentation
  • Scope of the Study
  • Product Definitions
4. First Base-Business Issues
  • Business Issues
5. Inefficiencies in the OFS Market Open Up Industry Pressure Points, as Asset Utilization Rate Falls by 20%
  • Oilfield Services-Definition
  • Pressure Point 1-Asset Availability
  • Pressure Point 2-High Costs of Core Services
  • Pressure Point 3-Protecting Operational Margins
  • Oilfield Services Market-Tectonic Shifts
  • Smart Oilfield Services
  • Ecosystem-The Who’s Who
6. Second Base-Growth Opportunities
  • Growth Opportunities
7. Volatile Oil Prices and the Need to Drive Operational Efficiency Drive the Demand for Responsive and Connected Oilfield Services
  • Technology Convergence Trends to Drive Out Inefficiencies
  • Connected Oilfield Services-Defining Reality
  • Connected Oilfield Services-Deep Architecture & Wide Structure
  • Challenges Faced by the O&G Industry
  • Multilevel IT-OT Architecture
  • Totally Integrated Digital Oilfield
  • Growth Opportunities
  • Outcomes of Smart Oilfields-Driving Throughput Efficiencies
  • Partnerships Driving Oilfield Efficiencies
  • Use Case 1-Production Efficiencies: BP + GE Predix
  • Connected Oilfield Services Impacting Predictive Asset Management
  • Use Case 2-Predictive Asset Management: IBM Smart Solutions
  • Need for Pore-to-pipeline Portfolio
  • Use Case 3-Asset Performance: Schlumberger + Cameron
  • Connected Oilfield Services Impacting Production Cost Efficiencies
  • Use Case 4-Production Cost Efficiencies: SAP SE + Mobility
8. Third Base-Strategy and Insights
  • Strategy and Insights
9. Emergence of a Digital Platform for Oilfield Services Disrupts, Collapses, and Transforms Fragmented Oilfield Operations
  • OFS Platforms-Pressure Points Driving Consolidation
  • Elements of Digital Oilfield-Bringing Together the Siloes
  • Key Factors Driving Innovation
  • Implications of Platform Adoption
  • Stakeholders Platform
  • Single Platform-The New Need
  • Ecosystem-The Who’s Who
  • Ecosystem-Mergers and Acquisitions
  • Use Case 1-GE: Positioned as a Full Stream Service Provider
  • Use Case 2-Halliburton: Utilizing Cloud Services to Optimize Recovery
10. By 2020, 50% OEM Revenues Will Come from Services, Disrupting the Old Business Model in Favor of the Growth-driven New Model
  • Smart Solutions to Connect the Oilfield Services Equipment
  • Oilfield Operators-Key Factors for Business Model Transformation
  • Transforming Business Models of Equipment Manufacturers
  • What Should Equipment Manufacturers Do?
  • Business Model Transformation Benefits to OEMs
  • Asset Classes and Analytical Services Offered (Partial Listing)
  • Use Case-Chevron Monitoring Performance by Predictive Maintenance
11. Unfulfilled Needs of Capital, Resource, and Asset Efficiency Threaten the Survival of Automation Companies and Drives Them Toward Portfolio Expansion
  • Top 5 Objectives of Oil Operators for Automation
  • Oilfield Operator Expectations from Automation Companies
  • Technologies and Domain Expertise-Turning MAC into MIMC*
  • Automation Portfolio Expansion to Drive Smart Business
  • M&A of Automation Companies in the Oilfield
  • Partnerships Driving Portfolio Expansion
  • Use Case 1-Core Automation Moving into Analytics
  • Use Case 2-New Alliances Forming in OFS: Analytics PaaS
  • Use Case 3-Predictive Analytics Reducing Failures
12. ICT in Oilfield Services Takes a Leap of Faith with AI; the Age of Unmanned Assistants has Entered the Market
  • Evolution of IT Applications-AI Taking Over OFS
  • Arrival of AI & ML in Oilfield Services-Timely & Disruptive
  • Applications of AI and Virtual Assistants Across the Value Chain
  • Business Model Transformation-From Cloud to AI
  • Artificial Intelligence-The New Reality
  • Artificial Intelligence Architecture in Oilfield Services
  • Neural Networks-Stronger in the Oilfield
  • Cognitive Computing Enabling Optimization
  • Machine Learning Application in Oilfield Services
  • Partnerships Driving Penetration of Artificial Intelligence
  • Use Case 1-AI Assists in Reservoir Management
  • Use Case 2-Production Optimization for Complex Fields
  • Use Case 3-Convergence Bringing AI to Oilfield Services
  • Use Case 4-Repsol-IBM Collaboration on Cognitive Technologies
  • Use Case 5-Finding New Reserve with New Technological Frontiers
  • Artificial Intelligence & Machine Learning Ecosystem
13. Top Recommendations
  • Legal Disclaimer
14. Appendix
  • Micro Boom Research Methodology
  • List of Abbreviations
  • Additional Sources of Information on Connected Oilfield Services
  • Learn More-Next Steps
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A selection of companies mentioned in this report includes:

- BP
- Cameron
- GE Predix
- Mobility
- Schlumberger
Note: Product cover images may vary from those shown