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Oil and gas increasingly reliant on wireless M2M

Posted By TelecomTV One , 21 November 2012 | 0 Comments | (0)
Tags: M2M Research vertical markets oil gas Wireless Satellite vsat

The number of wireless M2M devices in the oil and gas industry is expected to reach 435,000 by 2016, according to new research, Guy Daniels reports.

According to a new research report from the analyst firm Berg Insight, the number of M2M devices with cellular or satellite connectivity deployed in oil and gas applications worldwide was 164,000 at the end of 2011.

Growing at 21.5 per cent per year, this figure is expected to reach 435,000 by 2016, with 275,000 of them cellular based and 160,000 using satellite connectivity.


The oil and gas industry is characterised by remote facilities where wireless communication in many cases is the only viable option for transferring M2M data. Example applications included monitoring and controlling of drills, wells and pipelines.


Rising operating costs due to increasingly inaccessible reserves and accelerating competition between oil companies is one of the factors driving M2M growth, said Johan Svanberg, Senior Analyst, Berg Insight:


“Demand for improved operational efficiency and new governmental regulations will push the adoption of wireless M2M in the industry. Wireless M2M, remote automation, control and monitoring are also key ingredients in order to make it cost effective to extract, transport and distribute emerging oil and gas products including LNG and unconventional resources such as shale gas and heavy oil.”


North America is leading the use of wireless M2M solutions in oil and gas applications and the region accounts for almost half of total worldwide device shipments, according to Berg Insight.

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