Exploration is the process of finding new reservoirs of oil and natural gas trapped under the earth’s surface. Production is the process of extracting those resources for further processing and refining. Exploration and production software programs are designed to cater to a wide range of applications for the oil and gas industry. Attributing to the increasing exploration of unconventional gas resources around the globe, the exploration and production (E&P) software market is slated to witness strong demand in the future.
On the basis of region, the global exploration and production software market can be segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
North America holds the largest share in the exploration and production software market. Developed countries such as the U.S. and Canada are focusing on making exploration and production processes more safe, efficient and environment-friendly. E&P activities have been increasing across the region, which in turn has been driving the demand for E&P software. For instance, in January 2018, the Energy Department (DOE) invested USD 30 million in six small drilling projects to achieve the U.S. government policy of maximizing fossil fuel production. The six projects sites are located in Tuscaloosa Marine Shale in Louisiana and Mississippi. This project is expected to adopt E&P software technology to increase drilling efficiency.
The Latin America and Middle East & Africa region is pegged to be the fastest growing market for exploration and production software. Attributing to the increasing oil and gas offshore activities and developments, the demand for exploration and production software programs is increasing in the region. For instance, in August 2018, Minister of Energy (South Africa), Jeff Radebe, released a new long-term vision to grow its energy mix of oil, gas, coal, nuclear, coal and renewable energy from 1% to 16% by 2030, which is expected to provide vast opportunities for the E&P software market.
The Asia Pacific E&P software market is experiencing healthy growth due to the region’s complex geology and the fact that countries in the region depend upon other regions for their oil & gas needs. To cut down oil dependency, drilling activities in the region have been increasing. Exploration activities are expected to rise in tandem with the rising demand for oil and gas, stronger commodity prices, and uptick in merger and acquisition activities. Moreover, offshore exploration activities are expected to rise in the region due to reserve potential and technological innovation in offshore Myanmar and Papua New Guinea. These increasing E&P activities are driving the demand for E&P software in the region.
Europe’s E&P software market is expected to be dominated by the U.K and Norway due to the development of unconventional oil and gas exploration activities such as shale in the region. In 2017, 36 exploration wells were drilled in the Norwegian continental shelf, and 11 discoveries were made. According to the Norwegian Petroleum Directorate, 40-50 new exploration wells drilled in 2018.
The global exploration and production (E&P) software market can be segmented on the basis of deployment type, software type, and region. On the basis of deployment, the market can be segmented into on-premise software and cloud-based software. The cloud-based software segment is experiencing the highest market growth due to the cost-effectiveness of this software.
On the basis of software type, the market can be segmented into risk management mapping, reservoir characterization, seismic amplitude analysis, portfolio aggregation, performance tracking, drilling, and others. The reservoir characterization software segment holds the largest market share among all segments by software type.
On the basis of region, the market has been segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Among all regions, North America accounts for the largest share in the global exploration and production software market.
Some of the key market players in the exploration and production (E&P) software market include Halliburton, Exprodat Consulting Ltd., ETL SOLUTIONS, Emerson Paradigm Holding LLC., Schlumberger Limited, P2 Energy Solutions, eDrilling AS, TDE Group, Petrolink, OVS Group LLC., Rock Flow Dynamics, Petroleum Experts Limited., Kongsberg Gruppen ASA, General Electric, Pason Systems Corp., GEPlan Consulting srl, Interactive Network Technologies, Inc., ION Geophysical Corporation, IHS Markit, Emerson Electric Co., and Computer Modelling Group Ltd.
Leading players are significantly investing in research and development to expand their product portfolios and gain a competitive edge in the market.
In 2017, Emerson completed its acquisition of Paradigm. The combination of Paradigm with Emerson’s Roxar software business creates a comprehensive Exploration & Production (E&P) software portfolio offering.
E&P Software Market Segmentation