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.