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NSR: HTS Technology Driving Oil and Gas Satellite Market Growth

By | March 2, 2011

      [Satellite TODAY Insider 03-02-11] High-throughput satellites (HTS) and the increased presence of oil and gas operations in remote environments will help the satellite enterprise communications industry grow sector-wide revenues from $600 million in 2010 to $975 million by 2020, according to an NSR report released March 1.
          NSR projects that satellite companies will 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.
          "With Deepwater Horizon behind the oil and gas industry, companies now have renewed interest in continuing to expand exploration and production plans and increasing the capacity to deliver crude or natural gas products from production site to their final markets. … As terrestrial solutions continue to penetrate the traditional markets, these ‘next big things’ will be where satellite-based solutions dominate," NSR said in the report.
          The firm also forecasts that the offshore segment will grow at about 8 percent per year to total retail revenues of more than $450 million by 2020. The Atlantic Ocean region will provide 33 percent of total retail revenues in 2010, however, the region will drop to only 27 percent of revenues as fast-growing markets in the Indian and Pacific Oceans mature, according to NSR Senior Analyst Claude Rousseau.
          "Terrestrial penetration in the Gulf of Mexico and the North Sea reduces the value-proposition of satellite-based solutions. Yet, places without terrestrial solutions will be where satellite players see the largest growth, mainly in deep water or northern latitude markets. Along with terrestrial penetration, increases in regulation and a slowdown of new discoveries also limit overall growth in traditional markets," Rousseau said in the report.

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