Distributed Fibre Optic Sensing for the Oil & Gas Industry 2014-2024

Distributed Fibre Optic Sensing for
the Oil & Gas Industry 2014-2024
Market Prospects for DTS, DAS & DTSS for Well &
Reservoir Monitoring, Security & Seismic
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Contents
1. Report Overview
1.1 Overview: Global Distributed Fibre Optic Sensing for the Oil & Gas Industry Market
1.2 Market Segmentation: Global Distributed Fibre Optic Sensing for the Oil & Gas Industry
1.3 Market Definition: Global Distributed Optic Sensing for the Oil & Gas Industry
1.4 Why You Should Read This Report
1.5 How This Report Delivers
1.6 Key Questions Answered by This Analytical Report Include:
1.7 Who is This Report For?
1.8 Methodology
1.9 Frequently Asked Questions (FAQ)
1.10 Associated Visiongain Reports
1.11 About Visiongain
2. Introduction to the Distributed Fibre Optic Sensing for the Oil & Gas
Industry Market
2.1 What is Distributed Fibre Optic Sensing (DFOS)?
2.1.1 What Fibre Optic Cables Are Required?
2.2 What Are the Different Types of Distributed Fibre Optic Sensing Used by the Oil & Gas Industry?
2.2.1 Distributed Fibre Optic Temperature Sensing (DTS)
2.2.2 Distributed Fibre Optic Acoustic Sensing (DAS)
2.2.3 Distributed Temperature and/or Strain Sensing (DTSS/DSTS or DSS)
2.2.4 Quasi-Distributed Fibre Optic Chemical Sensing (DCS)
2.3 Applications of Distributed Fibre Optic Sensing within the Oil and Gas Industry
3. Global Distributed Fibre Optic Sensing for the Oil & Gas Industry
Market 2014-2024
3.1 Global Distributed Fibre Optic Sensing for the Oil & Gas Industry Market Forecast 2014-2024
3.1.1 How Do Oil Price Dynamics and Outlook Affect Investment in Distributed Fibre Optic Sensing?
3.1.1.1 Scenario 1: ~$80/bbl
3.1.1.2 Scenario 2: ~$100/bbl
3.2 Benefits and Drawbacks of Using Distributed Fibre Optic Sensing in the Oil & Gas Industry

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Contents
4. Distributed Fibre Optic Sensing in the Oil & Gas Industry: Application
Submarkets 2014-2024
4.1 Well & Reservoir Monitoring Using Distributed Fibre Optic Sensors: Submarket 2014-2024
4.1.1 Overall Drivers & Restraints on Investment in Distributed Fibre Optic Sensing for Well Monitoring
4.1.2 In-Situ (including SAGD) and Other Thermal EOR Deployment
4.1.3 Demand for Well Monitoring During Hydraulic Fracturing
4.1.4 Expected Reductions in Cost and Wider Benefit Appreciation
4.1.5 Well Monitoring Possibilities Using Distributed Fibre Optic Sensing Solutions
4.1.6 Temporary Deployments
4.2 Pipeline Security and Monitoring Using Distributed Fibre Optic Sensors: Submarket 2014-2024
4.2.1 Overall Drivers & Restraints on Investment in Distributed Fibre Optic Sensing for Pipeline Security
and Monitoring
4.2.2 Benefits of DAS as a Pipeline Security Measure
4.2.2.1 What Are the Economics of DAS as a Pipeline Security Measure?
4.2.3 Restraints on Distributed Fibre Optic Sensing as a Pipeline Security and Monitoring Technique
4.2.3.1 Will the DAS Pipeline Surveillance Market Reach Saturation Point?
4.2.4 Summary of Pipeline Expansion Worldwide
4.2.5 What Regions Are the Most Prospective for the Implementation of DFOS as a Pipeline Security
Measure?
4.2.6 Tipping Point Given Security Expenditure
4.3 Seismic Applications for Distributed Fibre Optic Sensing: Submarket 2014-2024
4.3.1 Overall Drivers & Restraints on Investment in Distributed Fibre Optic Sensing for Seismic Acquisition
4.3.2 What are 4D Seismic and How Can Distributed Fibre Optics Provide 4D Data Acquisition Assistance?
4.3.3 Barriers to the Use of Distributed Fibre Optic Sensing as Seismic Acquisition Method
4.4 Other Applications for Distributed Fibre Optic Sensing in the Oil & Gas Industry: 2014-2024
4.5 Installing Distributed Fibre Optic Sensing Solutions in the Oil & Gas Industry – A Limitation to Uptake?
5. Global Leading Distributed Fibre Optic Sensing Markets: Spending On
DFOS Equipment by the Oil & Gas Industry
5.1 DTS in the Oil & Gas Industry: Submarket 2014, 2019, 2024
5.1.1 What Are The Main Applications of DTS in the Oil & Gas Industry?
5.1.1.1 Well Monitoring
5.1.1.2 Thermal EOR
5.1.1.2.1 Canadian Oil Sands

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Contents
5.1.1.2.2 Other Thermal EOR Developments
5.1.1.3 Other Applications of DTS
5.2 DAS in the Oil & Gas Industry: Submarket 2014, 2019, 2024
5.2.1 What Are The Main Applications of DAS in the Oil & Gas Industry?
5.2.1.1 Well Monitoring
5.2.1.2 Pipeline Surveillance
5.2.1.3 Seismic Data Acquisition
5.3 DTSS (DSTS) and Emerging Distributed Fibre Optic Sensing Solutions for the Oil and Gas Industry: Submarket
2014, 2019, 2024
6. Regional Distributed Fibre Optic Sensing in the Oil & Gas Industry
Markets 2014-2024
6.1 North American Distributed Fibre Optic Sensing for the Oil & Gas Industry Market Forecast 2014-2024
6.1.1 North American Distributed Fibre Optic Sensing Market Analysis
6.1.2 Application 1: Thermal EOR
6.1.3 Application 2: Unconventional Oil & Gas E&P
6.1.4 Other Application Markets
6.1.5 Drivers & Restraints on the North American Distributed Fibre Optic Sensing Market
6.2 Middle East and North Africa (MENA) Distributed Fibre Optic Sensing for the Oil & Gas Industry Market Forecast
2014-2024
6.2.1 MENA Distributed Fibre Optic Sensing Market Analysis
6.2.3 Application 2: Oil and Gas Infrastructure Security, Predominantly Pipelines
6.2.3.1 How Is Oil & Gas Infrastructure Security Approached in Saudi Arabia?
6.2.3.2 How Is Oil & Gas Infrastructure Security Approached in Algeria?
6.2.3.3 How Is Oil & Gas Infrastructure Security Approached in Iraq?
6.2.3.4 How Is Oil & Gas Infrastructure Security Approached in the UAE?
6.2.3.5 Other Important Target Markets for Pipeline Security to Note
6.2.4 Drivers & Restraints on the MENA Distributed Fibre Optic Sensing Market
6.3 Asian (incl. Russian) Distributed Fibre Optic Sensing for the Oil & Gas Industry Market Forecast 2014-2024
6.3.1 Asian Distributed Fibre Optic Sensing Market Analysis
6.3.3 Application 2: Pipeline Monitoring
6.3.4.1 The Chinese Unconventional Oil & Gas Opportunity for Distributed Fibre Optic Sensing

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Contents
6.3.4.2 The Russian Unconventional Oil & Gas Opportunity for Distributed Fibre Optic Sensing
6.3.5 Drivers & Restraints on the Asian Distributed Fibre Optic Sensing Market
6.4 Europe (excl. Russia) Distributed Fibre Optic Sensing for the Oil & Gas Industry Market Forecast 2014-2024
6.4.1 European Distributed Fibre Optic Sensing Market Analysis
6.4.3 Application 2: Pipeline Monitoring
6.4.4 Application 3: Offshore
6.4.5 Drivers & Restraints on European Distributed Fibre Optic Sensing Market
6.5 Central & South American Distributed Fibre Optic Sensing for the Oil & Gas Industry Market Forecast 2014-
2024
6.5.1 Central & South American Distributed Fibre Optic Sensing Market Analysis
6.5.2 Application 1: Pipeline Security
6.5.3 Application 2: Unconventional Oil & Gas Industry
6.5.6 Drivers & Restraints on the Central & South American Distributed Fibre Optic Sensing Market
6.6 Rest of the World (RoW) Distributed Fibre Optic Sensing for the Oil & Gas Industry Market Forecast 2014-2024
6.6.1 RoW Distributed Fibre Optic Sensing Market Analysis
6.6.2 Application 1: Pipeline Security
7. PEST Analysis of Distributed Fibre Optic Sensing Potential within the
Oil & Gas Industry
8. Expert Opinion
8.1 Baker Hughes Inc.
8.1.1 Baker Hughes & Well Monitoring
8.1.2 Distributed Fibre Optic Sensing Solutions for Reservoir Monitoring
8.1.3 DTS and DAS as Complementary Technologies
8.1.4 Technical Challenges Facing Fibre Optic Sensing Solutions
8.1.5 Growth Markets for DTS
8.1.6 Distributed Strain Sensing
8.1.7 The Usefulness of DAS as a Monitoring Solution

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Contents
8.1.8 Applications for Distributed Fibre Optic Sensing Solutions
8.1.9 Well Monitoring, DAS and Hydraulic Fracturing
8.1.10 The Advantages of Fibre Optic Sensing Solutions
8.1.11 Historical Limitations of the Use of Fibre Optic Cables as a Sensing Solution
8.1.12 Current Challenges for Market Penetration
8.1.13 Fibre Optic Cables as Chemical Sensors
8.2 Fotech Solutions
8.2.1 Fotech Solutions in the Distributed Fibre Optic Sensing Market
8.2.2 Regional Demand For DAS Services
8.2.3 DAS and DTS as Complementary Solutions
8.2.4 Installation Costs for Distributed Fibre Optic Sensing
8.2.5 Technical Challenges Facing DAS Solution Providers
8.2.6 Fotech Focus on Well Monitoring
8.2.7 Justifying DTS and DAS Solution Deployment
8.2.8 The Benefits of DAS for Hydraulic Fracture Monitoring
8.2.9 The Potential of Distributed Strain Sensing
8.2.10 What Oil & Gas Industry Applications of DAS Look Prospective?
8.2.11 The Reasons for Using DAS as a Pipeline Monitoring Solution
8.2.12 Distributed Fibre Optic Sensing, Reservoir Monitoring and EOR
8.2.13 Limitations on Distributed Fibre Optic Sensing Uptake
8.2.14 Distributed Fibre Optic Chemical Sensing: Is There A Need?
8.3 fibrisTerre
8.3.1 fibrisTerre & Well Monitoring
8.3.2 Challenges Faced by DTSS
8.3.3 The Installation Cost Associated with DTSS
8.3.4 Advantages of Measuring Strain
8.3.5 Compatibility of DTSS with DAS
8.3.6 Regional Demand for DTSS
8.3.7 DTSS and Downstream Process Monitoring
8.3.8 fibrisTerre Growth Prospects
8.3.9 Cost of Speciality Fibre Optic Cabling
8.3.10 Oil & Gas Industry Applications for Fibre Optic Sensing Solutions
8.3.11 Restraints on Market Penetration of Fibre Optic Sensing Solutions
8.3.12 Emerging Types of Distributed Fibre Optic Sensing
8.4 Silixa
8.4.1 The Silixa Offering and History

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Contents
8.4.2 The Silixa Technology
8.4.3 Installation Costs Associated with In-Well Monitoring
8.4.4 The Focus on In-Well Monitoring
8.4.5 The Viability of Distributed Strain Sensing
8.4.6 SAGD and DTS
8.4.7 Technical Challenges Being Faced by Distributed Fibre Optic Sensing
8.4.8 Distributed Fibre Optic Sensing in the Offshore Environment
8.4.9 Distributed Fibre Optic Sensing in the Downstream Process Monitoring
8.4.10 DAS and Pipeline Monitoring
8.4.11 Challenges Faced by Distributed Fibre Optic Sensing Solutions
8.4.12 DAS Compared with Emerging Chemical Sensing
8.4.13 Uptake of Distributed Fibre Optic Sensing Solutions
8.5 OZ Optics
8.5.1 OZ Optics and Distributed Fibre Optic Sensing
8.5.2 Installing Distributed Strain and Temperature Sensing
8.5.3 The Demands of the Oil & Gas Industry
8.5.4 Advantages of Distributed Strain and Temperature Sensing and OZ Optics Solution
8.5.5 DAS as the Emerging Distributed Fibre Optic Sensing Solution
8.5.6 Demand Markets for Distributed Fibre Optic Sensing Solutions Within the Oil & Gas Industry
8.5.7 What Limits Uptake of Fibre Optic Sensing Solutions?
8.5.8 Installation Cost
8.6 Pruett Tech Inc.
8.6.1 Pruett Tech Inc. and DTS Monitoring
8.6.2 DTS and DAS as Complementary Monitoring Solutions
8.6.3 Challenges to DTS: Pricing Points
8.6.4 DTSS, SAGD and Pressure Sensing
8.6.5 The Most Exciting Development for DTS
8.7 Senstar/Optellios
8.7.1 Senstar/Optellios & Distributed Fibre Optic Sensing
8.7.2 Demand for Distributed Fibre Optic Sensing Solutions Around the World
8.7.3 DAS for Well Monitoring and Seismic
8.7.4 Technical Challenges Facing the Distributed Fibre Optic Sensing Community within the Oil & Gas
Industry
8.7.5 Different Application Prospects for Distributed Fibre Optic Sensors
8.7.6 Previous Uptake Limitations Experienced by Distributed Fibre Optic Sensors
8.7.7 Solutions for Overcoming the Challenges the Distributed Fibre Optic Sensing Community is Facing

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Contents
8.7.8 Remaining Market Restraints on Distributed Fibre Optic Sensing
8.8 AP Sensing
8.8.1 AP Sensing & Distributed Fibre Optic Sensing
8.8.2 Regional Demand for Distributed Fibre Optic Sensing
8.8.3 DAS, DTS and Reservoir Monitoring
8.8.4 Technical Challenges Facing the Industry
8.8.5 SAGD and DTS
8.8.6 Emerging Applications for DTS and DAS
8.8.7 Overall Drivers & Restraints for Uptake
9. Leading Companies in the Distributed Fibre Optic Sensing Market
9.1 Companies Focussed on Supplying Distributed Fibre Optic Sensing
9.1.1 AP Sensing
9.1.2 fibrisTerre
9.1.3 Fotech Solutions
9.1.4 Future Fibre Technologies
9.1.5 Lios Technology
9.1.6 Omnisens
9.1.7 Optasense
9.1.8 Optellios/Senstar
9.1.9 OZ Optics
9.1.10 Pruett Tech Inc.
9.1.11 SensorNet
9.1.12 Silixa
9.1.13 Tendeka
9.1.14 Ziebel
9.2 Companies Supplying Distributed Fibre Optic Sensing Solutions to the Oil & Gas Industry as a Part of a Wider
Offering
9.2.1 Baker Hughes Inc.
9.2.2 Halliburton
9.2.3 IFOS Inc.
9.2.4 Schlumberger
9.2.5 Weatherford International
9.3 Other Notable Companies in the Distributed Fibre Optic Sensing Supply Chain

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Contents
10. Conclusions & Recommendations
10.1 Global Distributed Fibre Optic Sensing for the Oil & Gas Industry Outlook
10.2 Key Findings
11. Glossary
Associated Visiongain Reports
Visiongain Report Sales Order Form
Appendix A
Appendix B
Visiongain report evaluation form

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Distributed Fibre Optic Sensing for the Oil & Gas
Industry 2014-2024: Market Prospects for DTS, DAS &
DTSS; Well & Reservoir Monitoring, Security & Seismic
6.5 Central & South American Distributed Fibre Optic Sensing for the Oil
& Gas Industry Market Forecast 2014-2024
The below Table 6.14 and Figures 6.20 and 6.21 show visiongain’s forecast for the expenditure on
distributed fibre optic sensing equipment for use in Central & South America over the next 10
years.
$m 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2014-24
Central &
South
America 11.0 10.1 12.3 13.1 26.7 28.5 37.5 51.1 64.3 67.5 80.9 87.6 479.5
AGR % -8.7 21.8 6.6 104.1 6.7 31.5 36.0 25.8 5.0 20.0 8.2
2019-24 18.5
24.1
30.1CAGR (%) 2014-19
CAGR (%) 2014-24
-20
0
20
40
60
80
100
120
0
10
20
30
40
50
60
70
80
90
100
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
AGR(%)
CAPEX($m)
Year Market value AGR %
Source: Visiongain 2014
Table 6.14 Expenditure on Distributed Fibre Optic Sensing Equipment by the Oil &
Gas Industry in Central & South America Forecast 2014-2024 ($m, AGR %,
Cumulative)
Figure 6.20 Expenditure on Distributed Fibre Optic Sensing Equipment by the Oil &
Gas Industry in Central & South America Forecast 2014-2024 ($m, AGR %)
Source: Visiongain 2014

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8. Expert Opinion
8.1 Baker Hughes Inc.
Philippe Legrand is a veteran of the oilfield services industry, with more than 20 years of
experience. He is currently the Manager of Monitoring at Baker Hughes Incorporated for the Gulf of
Mexico region. Mr. Legrand is a leading expert on the utilisation of fibre optics as sensing solutions
within the oil and gas industry, and was previously the Product Line Manager for Fibre Optics at
Baker Hughes. Prior to this he was Director of Business Development for Optics and Monitoring
Systems at Pinnacle, a Halliburton company. He is the holder of Bachelors Degree in Electrical
Engineering from Texas A&M and a Masters Degree in Engineering Management from the
National Technological University (remote branch of Colorado State).
Visiongain interviewed Mr. Legrand in April of 2014 and would like to thank him for the astute and
insightful remarks.
Baker Hughes Incorporated (NYSE:BHI) is part of the leading elite group of oil- and gas-field
service providers, possessing a century-long track record in the oil & gas industry and employing
over 60,000 people in 80 countries worldwide. The company supplies well monitoring services
from well evaluation through drilling, completion, production and abandonment. Fibre optic
sensing solutions are a part of its suite of offerings.
8.1.1 Baker Hughes & Well Monitoring
Visiongain: Briefly describe how Baker Hughes is involved in the business of providing well
monitoring solutions. To what extent do you design the solution and manufacture the equipment?
Philippe Legrand: We supply monitoring from the well evaluation, through the drilling, completion,
production and abandonment phases. Monitoring in the large sense goes into core evaluation, fluid
sampling and analysis, mud logging, MWD, LWD, permanent in well monitoring, temporary/logging
monitoring. For permanent and logging solutions, we provide the industry with world leading
solutions on electronic gauges – “SureSens gauges” – fibre optic sensing such as DTS and DAS,
and Fibre Optic Pressure and Temperature gauges. We also provide the means for well data
acquisition (the interrogators), data transfer, analysis, storage and management.
Visiongain: What do you think gives your company a competitive edge over those also
implementing fibre optic monitoring solutions?

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9.1 Companies Focussed on Supplying Distributed Fibre Optic Sensing
9.1.1 AP Sensing
AP Sensing is a provider of Distributed Temperature Sensing solutions. In the oil and gas industry,
the company supplies the distributed sensing solution for reservoir monitoring and downstream
process monitoring – pipelines and LNG terminals. The company has over 25 years experience,
via its HP/Agilent heritage, of using optical technology to make measurements of the environment.
The technology is used outside of the oil and gas industry for power cable monitoring, industrial
process monitoring, fire prevention, hydro and geological research for civil engineering (vis. dams,
levees).
The company prides itself on the durability and reliability of its monitoring solution. Its primary
growth market going forward will be well monitoring, benefitting from the growth in thermal EOR
and hydraulic fracturing activity.
An interview with AP Sensing can be found in section 8.8.
9.1.2 fibrisTerre
fibrisTerre is a provider of structural health monitoring solutions that use distributed fibre optic
sensing technology. Its Brillouin Optical Frequency Domain Analysis (BOFDA) based distributed
fibre optic sensing technology is a DSTS solution that is used in critical engineering structures. The
company offers pipeline leakage and monitoring instrumentation for the oil and gas industry. It is
also looking into using its technology for in well monitoring.
The oil and gas industry is the emerging area of focus for the company; but of all the segments of
DFOS, market potential in Distributed Temperature and Strain Sensing offering is the smallest
market in terms of size and growth prospects. This is predominantly due to installation challenges.
The company must focus on demonstrating the added value of its BOFDA offering if it is to expand
market potential. (See section 5.3 for more analysis of DSTS uptake prospects).
The company was established in 2010 as a spin-off of BAM: the German Federal Institute for
Materials Research and Testing. An interview with Dr. Nils Nöther, Director at fibrisTerre, is
included in section 8.3 of this report.

Distributed Fibre Optic Sensing for the Oil & Gas Industry 2014-2024

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Distributed Fibre Optic Sensing for the Oil & Gas Industry 2014-2024