NEWS RELEASE                                                                          March 2017

$168 Billion Oil and Gas IIoT and Remote O&M Market by 2030

The oil and gas market opportunity for IIoT & Remote O&M will rise to $168 billion in 2030.  $110 billion will be onsite expenditures by the oil and gas companies but $58 billion will be for remote monitoring and support including Software as a Service (SaaS) and data analytics. Data analytics in turn will include IIoW (Industrial Internet of Wisdom). This in turn will foster Sourcing as a Service activities.

NAFTA will be the largest segment with oil and gas IIoT & Remote O&M revenues rising from $13 billion in 2016 to $83 billion by 2030.

The NAFTA projections are based on the 2017 EIA reference forecast predictions for energy pricing and consumption. Key assumptions are:

EIA Assumptions for the Year 2040
  Reference High Low
Oil Price $/bbl. 109 226 49
N.G. Henry Hub $/million BTU 5 10 3
U.S. GDP % CAGR 2.2 2.6 1.6
Energy Net Trade BTU Quads 2 25 -11

Since July 2016, there has been a 20% increase in oil rig counts. Oil producers have also increased their exports to India. These trends are showing the rejuvenation of U.S. shale oil. The shale oil market is expected to gain momentum from mid-2017.

Tight oil makes the biggest contribution to crude oil production with a 50% growth from 4 million bbl./day now to 6 million bbl./d by 2040.

The oil and gas industry is already ahead of other industries in the use of IIoT. More than half of the oil and gas companies are deploying IIoT-enabled technology for remote monitoring. Asset reliability and energy efficiency round out the top three non-product use cases (LNS Research).

Some of the biggest opportunities will be created by regulations restricting flaring in the U.S. Honeywell and Aereon will collaborate on solutions to help industrial customers boost the safety, efficiency and reliability of their operations by leveraging Honeywell's Industrial Internet of Things (IIOT) ecosystem.

Aereon provides air emissions solutions for the complete oil and gas sector, from the wellhead to the gas station. It offers products for flare systems, enclosed combustion systems, high efficiency thermal oxidizers and vapor/gas recovery units. "Aereon's fundamental strength is its wide array of fit-for-purpose combustion and vapor recovery products supported by in-house expertise to design, manufacture and support its field-installed base," said Mark Zyskowski, Senior Global Vice President, Aereon. "We are pleased to be able to bring our expertise to the IIoT ecosystem that Honeywell is developing to help customers around the globe maximize value from their operations by tapping into the power of the IIoT."

There will be a high ROI from automating remote operations. Well drilling and completion is becoming increasingly complex while the reservoir of field expertise is not growing to keep pace. Automation and monitoring of remote operations leverages the expertise of the industry, decreases on site personnel time and improves safety.

The complete analysis of IIoT & Remote O&M opportunities is provided in N031 Industrial IoT and Remote O&M

Details on the markets and project in oil and gas are found in N049 Oil, Gas, Shale and Refining Markets and Projects

Various IIoW support activities offered by McIlvaine include

High Performance Valves and IIoT

4S01 Berkshire Hathaway Energy Supplier and Utility Connect

44I Coal Fired Power Plant Decisions

59D Gas Turbine and Reciprocating Engine Decisions