|By Marketwired .||
|May 27, 2014 02:00 AM EDT||
WILMINGTON, DE and LONDON, UNITED KINGDOM -- (Marketwired) -- 05/27/14 -- NSR's newly released Energy Markets via Satellite, 4th Edition finds a challenging market for Arctic-based Oil & Gas satellite connectivity services. Even as more attention continues to move towards the Arctic -- for both the transportation of petroleum via tankers through the Northern Sea Route or Exploration & Production activities from O&G players -- the market does not provide a green light for widespread satellite communication solutions as found in other areas such as the North Sea, Gulf of Mexico, or the shale-plays in the lower 48 states.
"While O&G majors invest in the mineral and development rights throughout the Arctic, and dedicate capital and resources to the region -- the limited timeframe for activities, extremely harsh operating conditions, and ongoing environmental concerns pose significant barriers to the overall O&G industry in the Arctic," states report author and NSR Senior Analyst Brad Grady. "These issues all trickle-down into the planning cycles for satellite operators and communications service providers who continue to look at the Arctic as a potential -- but cannot yet see a green light for widespread investments of coverage and capacity."
Although providing double-digit growth opportunities for those systems that have coverage, and providing a 3x increase in the number of In-service units providing MSS-based communications solutions, by 2023 the total Arctic market opportunity is projected to be approximately 100 In-service MSS units. Compare that to the next smallest region -- the Indian Ocean at 5,000 In-service Units -- and the Arctic remains an interesting proposition, but not enough to sustain widespread dedicated focus.
While Oil & Gas development will occur in the Arctic, technically recoverable resources still exist in areas with longer operating windows, better known environmental management practices, and greater access to logistical support such as satellite communications. As NSR's Energy Markets via Satellite, 4th Edition explores -- an on-going maturation in the North Sea and Gulf of Mexico shifting activity into Latin America and Asia-Pacific will be larger growth drivers for energy market communications providers than a shift into the Arctic. In a global market of almost 170,000 In-service units just in the Oil & Gas sector alone, the Arctic is and remains an extremely small niche opportunity for satellite communications.
About the Report
NSR's Energy Markets via Satellite, 4th Edition continues to bring NSR's detailed analysis of the satellite communications industry to the Oil & Gas, Mining, and Utility verticals. With industry-leading analysis, the report provides readers a complete, detailed, must-have view into the unique characteristics of the energy industry -- and where the opportunities exist today and into the future for satellite communications services. For additional information on this report, including a full table of contents, list of exhibits and executive summary, please visit www.nsr.com or call NSR at +1-302-295-4981.
NSR is a leading international market research and consulting firm with a core focus on the satellite sector and related industries. Founded in 2000 and with an experienced group of analysts located in all regions, NSR specializes in analysis of growth opportunities across four core sectors: Satellite Communications, Broadcasting & Digital Media, Hybrid & Emerging Applications and Commercial Space.
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