New market forecasts from ABI Research show that spending on big data and analytics in the energy industry will amount to US$7 billion in 2014, representing over 15% of the overall cross-industry spending. In 2019, the spending on energy analytics will exceed $21 billion, following a CAGR of 25%.
As a sector, energy has traditionally been very conservative in adopting new forms of IT, but the resistance to change has already started softening. Principal analyst Aapo Markkanen comments, “Greater shareholder pressure is pushing many energy groups to improve their returns after having it easy in the past. In such a highly asset-intensive field, huge cost savings are possible by making the operations more driven by data. Analytics allow the early movers to gain a critical competitive advantage over laggards, in a field where competing by the end product is seldom an option.”
In 2014, 63% of the spending is expected within upstream operations, where big data is bound to revolutionize the exploration and production of resources. Meanwhile, the downstream accounts for 31% of the total, reflecting the growing use of data in refining and the smart grid. Finally, the midstream represents 6% of the sum, spent mostly on optimizing logistics.
Practice director Dan Shey concludes, “Energy is an industry that has expensive problems, but can afford premium solutions. For instance, in the core analytics part of the value chain, newer suppliers like Ayata and Ayasdi are pushing the state of the art when it comes to modernizing the upstream. But there are also opportunities for entrants tackling other parts of the value chain. Rethinking data storage to accommodate the growing influx of sensor data is one example. In this domain, pay attention to likes of Infobright, SpaceCurve, and TempoDB as innovators.”
This article has been extracted from https://uk.finance.yahoo.com, please click on this link to read the article in full https://uk.finance.yahoo.com/news/energy-industry-becoming-more-progressive-140800170.html
Montash is a multi-award winning, global IT recruitment business. Specialising in permanent and contract positions across mid-senior appointments across a wide range of industry sectors and IT functions, including:
ERP, BI & Data, Information Security, IT Architecture & Strategy, Energy & Technologies, Demand IT and Business Engagement, Digital and E-commerce, Leadership Talent, Infrastructure and Service Delivery, Project and Programme Delivery.
Montash is headquartered in Old Street, London, in the heart of the technology hub. Montash has completed assignments in over 30 countries and has appointed technical professionals from board level to senior and mid management in permanent and contract roles.