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Satnews Daily
April 3rd, 2012

NSR... Despite Requirement Increases, O&G Market Remains Lucrative (Analysis | Reports)


[SatNews] NSR has released its newest market survey and forecast report:

NSR’s Oil and Gas via Satellite, 2nd Edition report. This report finds the Oil & Gas SATCOM market remaining lucrative over the long-term as bandwidth needs rise worldwide and emerging Oil & Gas markets increase their requirements. Traditional Oil & Gas markets, such as the North Sea and Gulf of Mexico, are now increasingly complemented by growing satcom demand in Asia, Latin America and the Indian & Pacific Oceans. “Terrestrial penetration continues in North America, and Europe, both offshore and onshore,” notes NSR Analyst and report author Bradford Grady. “Unconventional resources, deep water, and the North Sea Route will be the next hot beds of activity within the Oil & Gas market as larger vessels and remote fields come online. These remote environments, both onshore and offshore, will be where satellite services are needed most—and help to generate over $1.1 Billion in total retail revenues by 2021.”

Bandwidth demands are also expected to increase, requiring over 97 TPEs of C/Ku-band and 9.5 Gbps of HTS capacity in 2021. By 2021, increased investment throughout Asia and Latin America will drive these regions to generate more revenue than North America. Overall, Asian and Latin American Oil & Gas Markets will provide the upcoming growth opportunities for satellite players. Bottom Line, more bandwidth demand, the push into remote environments, and a steady increase in activity all provide a compelling value-proposition to satellite service providers across the MSS and VSAT value-chain. With total retail revenues expected to grow from $660 million in 2011 to over $1.1 Billion USD by 2021, the Oil and Gas market will remain a lucrative market for satellite services.