The prices of crude oil have been declining since mid-2014 and so have those of natural gas over the past few years. This trend of declining rates is expected to continue through 2024, states a report by Transparency Market Research (TMR). Declining costs of crude oil and natural gas have reduced the profit margins of exploration and production companies in the oil and gas industry. Similarly, other companies involved in the upstream, midstream, and downstream operations of the oil and gas industry are also experiencing a considerable decrease in their profit margins.
In order to optimize their operations and reduce operating costs, the oil and gas industries have started making use of oil and gas analytics services. The oil and gas analytics services aid companies operating in this sector to improve production, minimize operating costs, and enhance their profits. According to TMR, the oil and gas analytics market in North America is expected to rise from US$3,116 mn in 2015 to US$16,536.8 mn by 2024, expanding at a 19.5% CAGR from 2016 to 2024.
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Q. What are the challenges faced by the global oil and gas analytics market?
Data integration is a key obstruction with regard to data quality and the ability to analyze data. Analysts and managers manage analytics by a particular department or function, which inhibits an integrated approach for end-to-end workflow. Lack of data governance and data ownership create further issues relating to data format, accessibility, and completeness in oil and gas analytics. Data disconnect between what is collected and its relevance in the oil and gas business is another factor posing a challenge. Thus, poor quality of data and lack of data integration are expected to hamper the growth of oil and gas analytics market.
Q. What are key strategies adopted by players in the market?
Innovation in software programs, hardware equipment, and suites is one of the key strategies adopted by market players to overcome stiff competition. Market leaders such as SAP SE, Oracle Corporation, and IBM Analytics provide their patented software programs to other third party service providers through licensing on lease. Players are concentrating on increasing the sales of hardware such as data storage units, servers, data monitoring, and capturing. As technology competence is vital to sustain in the global oil and gas analytics market, players are focusing on technological advancements and investing in R&D.
Q. What are recent developments by key players in the market?
In April 2016, Deloitte Development LLC developed a Solution Print for cloud financial analytics, which is based on budgeting cloud service and oracle planning. In March 2015, the company had introduced an advanced analytics platform for internal auditors in order to support the end-to-end audit process, including risk sensing, analytic techniques, and data visualization.
In April 2016, KPMG International Cooperative launched KPMG Digital Village to fill the gap in a startup ecosystem in Singapore. The Digital Village focuses on healthtech, fintech, and logistics. Similarly, in May 2016, SAS Institute Inc., launched new tools to be useful for the cloud age. Such developments are expected to encourage the adoption of the oil and gas analytics market even in the future.
