Market Trends of Oil And Gas Drone Services Industry
Drones’ Integration with Artificial Intelligence (AI) Expected to Drive the Market
- In the recent past, drones were required to carry out operations within the site. The use of drones by oil and gas operators has been significantly influenced by the integration of artificial intelligence (AI) with drones and the development of thermal imaging and methane gas detection. With this advancement, drone coverage has become more widespread than just covering visible areas because they can fly beyond lines of sight (BVLS).
- However, the development of AI now enables drones to hover beyond the line of sight. The integration of AI has helped drones fly beyond the visual line-of-sight (BVLS) and gather much more data without any human effort. The data collected is proven to be more accurate and can help the oil and gas operator prevent mishaps or leakage during the operation.
- Modern drones are faster and smarter in processing enormous amounts of data from assets. As the AI improves, these drones may independently decide on further action through their AI capabilities.
- In 2021, global oil production amounted to 89.9 million barrels per day. The level of oil production reached an all-time high in 2019, at nearly 95 million barrels. However, the coronavirus pandemic and its impact on transportation fuel demand led to a notable decline in the following year. The increasing oil production is expected to drive the oil and gas drone service market.
- In addition, oil and gas companies use artificial intelligence (AI) to drill and mine the unprocessed hydrocarbons and other goods needed to make gasoline. AI aids in the creation of algorithms that deliver precise and accurate intelligence to direct drills on both lands and the sea. Precision drilling increases the penetration rate while lowering the danger of mishaps, fires, and oil spills.
- Further, the AI-integrated sensor can now easily move inside the closed building and is not prone to collisions with walls without the help of any human controlling it. As these technologies keep improving, the application for these drones will increase, which is expected to drive the market.
- Hence, based on the above-mentioned factors, Drones' Integration with Artificial Intelligence (AI) is likely to drive the market during the forecast period.
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North America to Dominate the Market
- North America was the major market for drone services and is expected to hold the largest market share during the forecast period. The United States dominates North America, and the increase in offshore oil and gas activities in the region is expected to drive the market's growth during the forecast period.
- The recent discoveries in the Gulf of Mexico deepwater are expected to increase the exploration activities at the deepwater and ultra-deepwater sites, while the reserves in the shallow water are expected to decline over the period. This, in turn, is expected to boost the demand for oil and gas drone services for deepwater activities in the United States.
- The two separate recent drilling programs, by Shell Canada and BP Canada, are complete and show no evidence of commercial discoveries. As a result, it can be concluded that the oil and gas drone services market in Canada is likely to decline, with an expected decrease in oil and gas exploration activities, provided the 12 active exploration licenses are not renewed shortly. Moreover, decommissioning of the Sable Offshore Energy and Deep Panuke projects is underway. The lack of sufficient market access, the increasing burden of regulatory uncertainty, and the decommissioning of the two projects mentioned above are likely to reduce the competitiveness of the Canadian offshore oil and gas industry in the coming years, thereby affecting the demand for oil and gas drone services.
- Moreover, there are more than 900,000 oil & gas well pads and upwards of 500,000 miles of pipeline in the United States, all of which requires regular inspection and monitoring. American Robotics anticipates a global TAM value of USD 22 billion for the oil and gas sector drone-in-a-box market. Thus, creating demand for oil and gas drone services in the forecast period.
- Therefore, the increasing investment in the country's upstream sector by foreign companies and the increase in oil and gas exploration activities are expected to drive the demand for the region's oil and gas drone services market.
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