oil & Gasvia satellite

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s a t e l l i t e C o m m u n i c a t i o n s

B r o a d c a s t i n g & D i g i t a l M e d i a

H y b r i d & E m e r g i n g

A p p l i c a t i o n s

C o m m e r c i a l S p a c e

T H O U g H T L E A D E R S H i P

The foundation of NSR’s business is the ability to

continually help clients stay ahead of the curve

and anticipate trends before it is too late to react.

Whether it is a market research report covering a new

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This “first-to-market” approach has enabled NSR to

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globe. Never content to only provide analyses on

legacy markets, NSR has routinely broken new ground

by analyzing and forecasting a range of up-and-

coming applications and services across a wide range of

coverage areas. Mixing technical expertise with

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leadership is a critical element of our client’s decision

making in all regions.

S AT E L L i T E C O M M U N i C AT i O N S

From spacecraft manufacturing

and launching to the

applications

that drive capacity

supply and demand

B R O A D C A S T i N g & D i g i TA L M E D i AVideo is the core and

foundation of the industry,

typically accounting for

60% or more of total

revenues

H y B R i D & E M E R g i N g A P P L i C AT i O N S

NSR’s leading edge

coverage has shown that

satellite is more than ever

intertwined with the fabric of

terrestrial networks

C O M M E R C i A L S PA C EBeyond telecommunictions

services, Commercial Space

presents promising opportunities

for the space industry

On the heels of the Deepwater Horizon spill, a drilling

moratorium in the Gulf of Mexico, and a slowly recovering

global economy, the Oil & Gas industry continues its search

for petroleum resources across the globe. As the annual Baker

Hughes’ rig counts show an overall increase in drilling activity

for 2010 compared to 2009, the increase in activity comes with

new incentives to build-out terrestrial networks to service

these new rigs.

However, as exploration goes into deeper waters, and drilling

bans after a spill become a hard-fast reality, will satellite-based

solutions continue to present a unique value proposition to rig

owner and operators? Moreover, as VPNs, videoconferencing

and diagnostics, and remote real-time monitoring find their way

onto the drill site, satellite solutions will have to accommodate

these and new advanced services. Further improvements in

bandwidth through Ka-band and high-throughput satellites

(HTS) will also target and have an impact on the oil and gas

market.

And, as recent consolidation movements among satellite

service providers reduce the number of providers, how will the

oil & gas satellite connectivity market move forward?

Coupled with this is the economic recovery which, with the

insatiable thirst for petroleum in India and China, will increase

global petroleum movement via pipeline and tankers. This is

sure to stimulate the demand for communications solutions

for the distribution sector. The key role that satellite-based

solutions play in providing services to the distribution sector

for security and maintenance requirements is also driven

by real-time monitoring and remote diagnostics needs in

extremely remote regions on land and at sea.

In this NSR study, the exploration and production (E&P) and

distribution sectors of the oil and gas markets are analyzed, and

specific forecasts for VSAT and MSS technologies, by region, are

developed utilizing NSRs proven method of quantitative and

qualitative drivers and restraints.

Primary Questions addressed include:• What are the user requirements for satellite

connectivity within the Exploration & Production, and Distribution sectors? How are these requirements going to change over the forecast period, region-by-region?

• Which key trends, technologies, or services are driving the upstream and midstream oil & gas communications markets?

• How will terrestrial solutions affect satellites in both the offshore and onshore environments for the Exploration & Production sector? Which regions represent major

terrestrial wireless competition for satellite systems?• What are key requirements for various applications in the Distribution sector, and

how are they likely to drive demand for satellite-based solutions?• What is the market effect of the Harris acquisition of CapRock and Schlumberger

global Connectivity Services? How will it influence revenues and service offerings in the O&g Satcom market?

• How will regulatory changes such as exploration bans, stricter security requirements and increased crew safety impact the marketplace?

• Is video pushing applications from low-bandwidth to broadband?• Will Ka-Band/HTS have an impact on O&G satellite connectivity? Are O3B and

inmarsat just the tip of the iceberg? How will the entry of HTS into the O&g marketplace impact current players?

Primary elements of the Report include:• Global Oil & Gas Communications Markets Definition and Demand Trends• Market Outlook• Oil and Gas Market Ecosystem• User Requirements• Strategic Direction for Current and Future Satellite-Based Oil & Gas Connectivity

Services• Oil & Gas VSAT Services Forecasts, by Region and Sector• Bandwidth and Capacity Demand (TPEs/Mbps), by Sector• Oil & Gas MSS Forecasts, by Region and Sector

tHe NsR DiFFeReNCeThis report builds on NSR’s work and extensive experience in analyzing Fixed Satellite Services (FSS), and Mobile Satellite Services (MSS) sectors, as well as in-depth research into the mid- and up-stream oil & gas markets. The research provides readers with an honest and independent assessment of the role of satellite communications and the impacts of terrestrial wireless solutions on satellite revenues and in-service units as well as satellite bandwidth and capacity demand. it also provides detailed demand trends, by in-service units and revenues, for VSAT and MSS units from well-site exploration and production locations, through to pipeline or tanker distribution networks.

The reader is able to quickly navigate through the complex maze of applications and requirements inherent to the oil & gas industry, to discover key information relevant to the Exploration and Production, and Distribution sectors. Each technology (VSAT and MSS) base year and forecast is segmented by sector (E&P, Distribution), and region to provide an extensive assessment of the drivers and restraints in each forecast. The report also features a bottom-line assessment of key technologies, applications, and services for each technology, using qualitative and quantitative factors to highlight their unique influence on the mid- and up-stream oil & gas markets.

Moreover, the report provides long-term trends and analysis that will affect the up-stream and mid-stream oil & gas industries, including the introduction of video, crew comfort, an aging workforce, and the increasing push into more remote locations like ultra-deepwater and the Arctic.

R e g i o n s C o v e r e d

North America

Latin America

Middle East & Africa

Asia

Atlantic Ocean

Pacific Ocean

indian Ocean

NsR Coverage areas

With Deepwater Horizon behind the Oil & Gas Industry, the market has renewed its interest in exploration and production plans, and in increasing the capacity to deliver crude or natural gas products to consumers and enterprises.

Satellite does and will continue to play an increasing role in enabling the oil and gas industry to safely, and efficiently, operate in traditional locations such as the North Sea or the Gulf of Mexico. However, oil and gas companies continue to look for the ‘next big thing’ – both in deeper waters and northern climates. As terrestrial communications solutions continue to penetrate the traditional markets, these ‘next big things’ will be where satellite-based solutions dominate. As such, NSR believes that the oil and gas via satellite market will continue to grow while offering more diverse sets of solutions and bringing crew comfort and operational efficiencies to end-users.

Primary FindingsNSR has formulated the following forecast for the oil and gas via satellite market:

The global market for O&G MSS and VSAT in-service units will grow at a • 6.8% compound annual grow rate (CAGR) over the next 10 years. These units will provide connectivity services across both the Exploration and Production (E&P) – oil and natural gas discovery and drilling activities - and Distribution (Dist.) – pipelines and tankers – markets. New unit growth will be driven by increased connectivity requirements for VoIP, FoIP, remote video-based diagnostics, and increased dedicated bandwidth for crew comfort and safety applications.

Total revenues likewise will grow to nearly $1 billion• through the forecast period, driven by the well-established Atlantic Ocean Region market (covering the Gulf of Mexico and the North Sea). Total revenues will be dominated by services, with end-users placing a premium on global technical support infrastructure, managed services including video-based content delivery, and overall service reliability.Traditional markets will continue to dominate; however, the • Indian Ocean Region at 9.4% CAGR will be the fastest growing market, driven mainly by new E&P activity in the Horn of Africa and the Arabian Gulf. Following closely is the Middle East/Africa region at 8.9% CAGR, where there is renewed interest in both offshore and onshore O&G activities. Onshore O&G activities (E&P or Dist.), will provide the bulk of revenues, but providers will see a complex operating environment with onshore E&P activities related to crude oil prices, and pipelines (although the largest single user in terms of units), providing a relatively small contribution to total service revenues.

The O&G market is roughly split 70% - 30% between VSAT and MSS •units; however, with new discoveries occurring near or above the Arctic Circle, MSS providers could experience an uptick in usage until VSAT providers are able to overcome look-angle limitations in the northern latitudes.

Ku-band VSATs will provide the bulk of operator revenues during •the forecast period, with a large installed base in the onshore Dist. segment (servicing pipelines) and a proven reliability record on offshore E&P platforms. That said, new High Throughput Satellite (HTS) services introduced later in the forecast period will experience the highest growth figures, as HTS offerings aim to provide a lower-cost-per-byte as well as higher overall service speeds to end-users. The question will be how operators approach O&G end-users in terms of perceived reliability issues on typically Ka-band based systems.

Bottom LineWhile not all end-users are looking to expand into northern areas, nearly all O&G end-users operate on a global basis. The table below provides a quick view as to some end-user requirements O&G satellite players are likely to encounter.

The bottom line is that the Oil and Gas via Satellite market will continue to provide a lucrative source of revenue for current satellite players who can meet the needs of a set of demanding end-users. New market entrants need to do their homework and be willing to endure long-term trials with fleet owner/operators or variable day-rate contracts with onshore operators before experiencing significant revenue growth. However, the promise of a solid market is sure to provide a compelling argument as more connectivity demand across both distribution and E&P markets drives take-up.

e x e c u t i v e s u m m a r y

NSR is a leading international telecom market research and consulting firm with a mission to provide unique insights & assist organizations in strategic decision making.

With an experienced group of analysts located in all regions, NSR is a premier global market research and consulting company.

NSR’s products and services cover all analytical aspects of each market, including both business and technical issues. A solid understanding of both issues is critical to understanding the current and future state of any market, so our team and offerings are built to tackle these stringent requirements. it is through this approach that NSR has assisted companies in many segments and regions to successfully plan for growth.

in addition to both products and services, NSR is often quoted as an expert in many leading publications such as The Wall Street Journal, New york Times, Financial Times, Washington Post, Time Magazine, Business Week, The Economist, CNN, Forbes, Network World, international Herald Tribune, Total Telecom, Asia Times and Space News. NSR analysts are also frequently asked to chair and participate in telecommunications conferences around the world.

NSR clients range from start-ups to market leaders in various sectors of the telecommunications industry. The common theme across our clientele is the requirement for unbiased, actionable analysis that provides each company with the intelligence it cannot find elsewhere. it is this approach that has enabled NSR to stay ahead of the curve across all industries covered.

NSR is focused on emerging applications and services in the Satellite Communications, Broadcasting & Digital Media, Hybrid & Emerging Applications and Commercial Space markets in all regions.

satellite CommunicationsFrom spacecraft manufacturing and launching to the applications that drive capacity supply and demand, the Satellite Communications research practice addresses the heart of the satellite market. NSR investigates every link in the market chain in order to provide an in-depth and granular analysis of all demand drivers and restraints that customers need in order to choose a future direction.

our goal is to help manager’s worldwide

plan for growth based on unbiased, actionable

intelligence and analysis

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a b o u t N s R

N s R C o v e r a g e a r e a s

B r o a d c a s t i n g & D i g i t a l M e d i aVideo is the core and foundation of the industry, typically accounting for 60% or more of total revenues, while other digital media applications show some of the industry’s fastest growth rates. NSR’s extensive coverage of this important market leverages its geographically diverse analyst pool to capture the regional differences of video traffic and digital media applications around the world. By analyzing growth in video channels and feeds, in addition to location of emerging video platforms and applications in each region, NSR is able to provide detailed market insight for our customers.

H y b r i d & e m e r g i n g a p p l i c a t i o n sNSR’s leading edge coverage of new hybrid and emerging applications has shown that satellite is more than ever intertwined with the fabric of terrestrial networks. By analyzing how convergence impacts competition and cooperation between these two worlds, this practice area helps unlock new growth potential for our customers.

Commercial spaceBeyond telecommunications services, Commercial Space presents promising opportunities for the space industry. Ranging from all aspects of earth observation services to navigation and positioning services and government space programs, NSR presents a wide-ranging analysis of demand for these applications as well as the all important aspect of public spending for space activities.

NSR is a global telecommunications consulting firm with vast experience in areas like Satellite Communications, Broadcasting & Digital Media, Hybrid & Emerging Applications ,and Commercial Space . NSR’s consulting expertise has played a pivotal role in the board rooms of many large and dynamic telecommunications organizations across the region/sector. We help organizations in making the right business decisions with a focus on delivering the financial results.

Our consulting services are designed to suit your organization’s requirement in terms of quantitative and qualitative research drawing upon our collective experience of 100 years in the industry. Our analysis and insights help you focus on challenging issues and aid you in channeling your resources towards sustainable business strategies.

To know more about our Consulting Services please visit our website www.nsr.com.

N s R ’s C o n s u l t i n g s e r v i c e s

R e s e a r c h R e p o r t to p i c s gov’t and Military Satellite Communications

Broadband Satellite Markets

Machine to Machine (M2M) and SCADA

Mobile Satellite Services

Wireless Backhaul via Satellite

Satellite Capacity Supply & Demand

iPTV via Satellite

Advanced Satellite Coding and Modulation

Direct-to-Home (DTH)

Digital Signage

Mobile TV and Mobile Video

Earth Observation

High Throughput Satellites (HTS)

Remote Sensing

Video Broadcasting

and more...

Place your order for the Research Reportson above topics at www.nsr.com

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