[Satellite TODAY Insider 03-30-12] A steady growth of enterprise satellite bandwidth demand combined with the oil and gas industry’s push into remote environments are providing a compelling value-proposition to satellite service providers across the MSS and VSAT value-chains, according to the second edition of research firm NSR’s “Oil and Gas Via Satellite” report issued March 29.
The author of the report, NSR Analyst Bradford Grady, said the oil and gas satellite communications market would remain lucrative in the long-term as bandwidth needs rise worldwide and emerging energy markets increase their requirements.
“Traditional oil and 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 and Pacific Oceans,” Grady wrote in the report.
NSR expects the oil and gas sector’s total satcom retail revenues to grow from $660 million in 2011 to more than $1.1 billion by 2021. Bandwidth demand also is expected to increase at a parallel, requiring more than 97 TPEs of C- and Ku-band and 9.5 Gbps of HTS capacity in nine years. Grady said that increased investment throughout Asia and Latin America would drive these regions to generate more revenue than North America by 2021.
“Terrestrial penetration continues in North America and Europe — both offshore and onshore,” wrote Grady. “Overall, Asian and Latin American oil and gas markets will provide the upcoming growth opportunities for satellite players. Unconventional resources, deep water and the North Sea Route will be the next hot beds of activity within the oil and 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 to help generate more than $1.1 billion in total retail revenues by 2021.”
In its “Oil and Gas Via Satellite” report from last year, NSR predicted that high-throughput satellites and the increased presence of oil and gas operations in remote environments would help the satellite enterprise communications industry grow sector-wide revenues from $600 million in 2010 to $975 million by 2020. NSR also projected that satellite companies would yield total retail revenues of nearly $8.8 billion during the next 10-year period as traditional markets continue to provide stable revenue opportunities for satellite players.