Service companies are reinventing themselves to help operators unlock these savings. Rystad estimates that in 2018, $1 trillion was spent on operational expenditures, wells, facilities and subsea capital expenditures across more than 3,000 companies in the upstream space. Operators have predicted that automation and digitalization will reduce drilling, facility and subsea costs from 10 to 30 percent, but because not all operators or developments have the same capacity to reduce costs, adoption across the entire value chain will be closer to 10 percent by the end of the next decade. Another driver of digitalization is that data storage and processing have become significantly cheaper, and the increased connectivity through the so-called “Internet of Things” has allowed more data to be efficiently digested. (Source: Glacier RIG Ltd, 2019).
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