In The Oil And Gas Recovery, Satellite Will Rise

From Via Satellite

Despite slumps in technology spending, there is light on the horizon. New satellites, fit-for-purpose HTS, and increasing data-intensive trends could see satellite break away from the oil and gas market weakness in the future.

It’s no overstatement: there is seemingly always something going on in the Middle East. oil-rigAnd now, with nuclear-related sanctions lifted from Iran, the region has, perhaps, even more eyes on it. The geopolitical implications of Iran are significant; the country has the potential to redefine the Middle Eastern landscape. Oil rich and with numerous other valuable resources virtually untapped, Iran will likely resuscitate its economy, and the world will feel the wake of this large nation kicking off from the sin-bin pond into the global economy’s flowing river. The first evidence is the shaky price of oil. Iran stepping back from production cuts earlier this year left other members of the Organization of Petroleum Exporting Countries (OPEC) and the oil and gas (O&G) market as a whole in even greater turbulence.

While it’s interesting to see what comes out of Iran’s shackles being removed, the satellite industry is left to fretfully question the result of a turbulent O&G market. It’s highly probable that slumping revenues for O&G companies will squash technology investments. What does this mean for satellite growth? And for what duration? According to Judson Jacobs, senior director of upstream exploration and production at IHS energy consulting, many oil companies currently still see satellite as too expensive. This sentiment sours further when considering the pressure that O&G operations are under to cut back spending. Continue >

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