Product Code: IT002-000282
In a new forecast, Ovum predicts that global IT spending in upstream oil and gas will grow faster than demand or oil prices. This report analyzes factors underlying the forecasts, including accelerated development of both conventional and unconventional hydrocarbon resources. We expect IT spending in certain regions and countries, notably North America and Russia, to exceed the global growth rate.
- This report explains the key factors driving IT investment in upstream oil and gas and places them in context. Extremely capital intensive, high risk, and subject to considerable market volatility, the upstream industry needs every advantage that IT can provide.
- Analyzes various market forces affecting upstream oil and gas and how IT can help exploration and production companies address them most effectively.
- Assesses the role of unconventional hydrocarbon sources such as shale gas, shale oil, and heavy oil in driving IT investment in upstream oil and gas.
- What are the drivers feeding growth in IT spending in upstream oil and gas over the next five years?
- Which regions and countries will exceed the global average for upstream IT spending, and why?
- How will unconventional sources such as shale gas, shale oil, and heavy oil affect IT investment patterns?
Table of Contents
- Ovum view
- Key messages
- STABLE PRICES AND DEMAND ALLOW IT BUDGET GROWTH
- Global oil and gas production will grow modestly over the forecast period
- E&P IT spending will outpace both production and price increases
- North America, Europe, and the Middle East
- East Asia
- ALL CATEGORIES OF E&P IT SPENDING WILL GROW
- Hardware will grow most quickly, consulting most slowly
- Growth will be proportionate across all categories
- SHIFT TOWARD UNCONVENTIONAL SOURCES WILL DRIVE ADDITIONAL IT
- Unconventional sources pose a variety of technical challenges
- Prices will gradually trend upwards
- Technology lies at the heart of fracking production
- Oil sands production requires vast volumes of data
- IT is the key
- Environmental concerns shape public opinion and regulation
- All parties share an interest in monitoring
- Monitoring systems must be IT-based
- High stakes drive sharp debate
- Russia, China, and the US will be "unconventionals" hot spots
- OUR IT SPENDING FORECAST IS INTENTIONALLY CONSERVATIVE
- Production from unconventional sources depends on price stability
- RECOMMENDATIONS FOR VENDORS
- Support compliance, asset management, and mobility
- Further reading
- Ovum Consulting
- Figure 1: Change in global E&P IT spending, by source, 2011 vs. 2018
- Figure 2: Three regions outpace the global growth rate in each category