Satellites are playing an increasing role in the support of the global oil and gas industry. In the second of a series of bulletins looking at the range of satellite applications, this brief note summarises how satellite technology can support the functioning of the oil and gas industry.

The value of satellite applications for the oil and gas industry

Oil and gas companies represent some of the major users of satellite communications services and one of the largest commercial groups of satellite earth observation data users.

The industry works in some of the harshest environments on earth: in remote locations, far removed from infrastructure; and in extreme temperatures and weather conditions. Solutions involving a satellite element are, therefore, being looked on as increasingly feasible.

A brief summary of some of the existing capabilities is provided in this note.

Offshore exploration

Increasing exploration in deep waters and remote locations, such as the Arctic, can benefit from specialised earth observation capabilities by satellite for planning and operational stages. Even archived earth observation data, providing analysis of climate change and ocean trends, may assist in strategic decision making and risk mitigation.

One of the main benefits of satellite surveys is that they can be carried out across a range of countries and potential sites, and provide an efficient tool for the identification of potential new prospects.

Onshore activities

Satellite earth observation data is currently being used to support planning and resource management challenges in the oil and gas industry, for example in relation to moving and placing equipment and monitoring instruments and analysing the extent of slopes, terrain and ground cover.

The use of satellite observation tools removes the difficulties facing land-based or air-based solutions - accelerating the provision of high-quality, commercially valuable information.

Drilling

Satellite-controlled software has already been successfully used in some parts of the drilling process, providing automated, rapidly available data. Such technologies can also be a valuable tool for automating otherwise time-consuming and labour-intensive processes, and therefore unburdening key employees.

Disaster recovery and offshore (remote) communications

Standard technologies such as mobile communications networks predominantly function on an onshore basis, where appropriate equipment and infrastructure is in place and functioning properly. This causes issues in extreme disaster situations such as floods, storms etc., as well as where activities are carried out in remote offshore locations. In such cases, satellite technologies are useful in providing access to a wireless communications network that is independent of terrestrial infrastructure.

Satellite technologies are able to provide broadband internet, voice offer IP, real-time video and reliable communications to the harsh offshore environments. This also helps address health and safety matters in such challenging environments.

Maximising value

Ensuring the ease of access to satellite data is vital for the purposes mentioned above. The joint European Union/European Space Agency (ESA) initiative of Global Monitoring for Environment and Security (GMES) is proposing that free and open access is made available to pre-planned data derived from ESA's satellites.

For satellite service providers, the range of possible uses and applications to assist the oil and gas industry represents an opportunity to expand commercial business.

However, there is a need for on-going and effective collaboration between the oil and gas industry and the satellite industry to discuss the satellite technologies available and increase the overall awareness of satellite capabilities. In turn it is important that the satellite service providers better understand the challenges the oil and gas industry face and their precise data requirements.

Collaboration between oil and gas companies could assist in, and lessen the costs of, analysis of the full potential of satellite derived information. The long-term reliability for example of earth observation data can assist in the long life-cycle of an oil and gas development project.

Oil and gas companies should perhaps consider the merits of satellite sharing agreements in the same way as flight, vessel and rig sharing arrangements have led to savings and efficiencies for oil and gas companies.

This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq

Law-Now information is for general purposes and guidance only. The information and opinions expressed in all Law-Now articles are not necessarily comprehensive and do not purport to give professional or legal advice. All Law-Now information relates to circumstances prevailing at the date of its original publication and may not have been updated to reflect subsequent developments.

The original publication date for this article was 22/12/2011.