Reservoir Characterization Software Segment to Hold the Largest Share in E&P Software Market

Introduction

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.

Segment Analysis

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.

Regional Analysis

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.

Competitive Players

1. Halliburton
2. Exprodat Consulting Ltd.
3. ETL SOLUTIONS
4. Emerson Paradigm Holding LLC
5. Schlumberger Limited
6. P2 Energy Solutions
7. eDrilling AS
8. TDE Group
9. Petrolink
10. OVS Group LLC
11. Rock Flow Dynamics
12. Petroleum Experts Limited.
13. Kongsberg Gruppen ASA
14. General Electric
15. Pason Systems Corp.
16. GEPlan Consulting
17. Interactive Network Technologies INC.
18. ION Geophysical Corporation
19. IHS Markit
20. Emerson Electric Co.
21. Computer Modelling Group Ltd

Recent Developments

• March 2022- Halliburton Company and Landmark Graphics Corporation, a wholly-owned subsidiary of Halliburton, announced that they had completed the acquisition of PGS Data Management. The addition of PGSDM's PetroBank solutions expands Landmark Graphics' technology management solutions and services portfolio. PetroBank solutions are the market leader for efficient internet-enabled storage, browsing, and retrieval of vast quantities of quality-controlled exploration and production (E&P) data and information.
• October 2021- Schlumberger and AVEVA have announced an agreement to integrate edge, AI, and cloud solutions to assist oil and gas producers to optimize production. The companies will collaborate to streamline how energy operators acquire, process, and act upon field data for improved website performance. The initial emphasis of the collaboration includes linking edge systems to applications in the DELFI cognitive E&P environment in order to optimize equipment management.

Segmentation

1. By Deployment Type
   1. On-Premise Software
   2. Cloud-Based Software
2. By Software Type
   1. Risk Management Mapping
   2. Reservoir Characterization
   3. Seismic Amplitude Analysis
   4. Portfolio Aggregation
   5. Performance Tracking
   6. Drilling
   7. Others