Sky high potential

MJ. In November 2005, in Abuja, Nigeria, GVF held a Communications Conference for the West African region, with the objective of focusing on the ICT requirements of end-users. During the conference proceedings it was perfectly apparent that in the Nigerian and wider West African geographical context a number of vertical markets, particularly the oil & gas sector, were becoming ever-more reliant on ICT solutions to enhance the efficiency of their basic, core, competencies, i.e., exploration for, and extraction of, new fossil fuel resources. Implicit within this was a growing dependency on satellite-based communications for the most reliable and cost-effective delivery of their mission critical communications networking. Why? Very largely because the modern voice, data and video networking needs of the global oil and gas industry has now more than outgrown the ability of highly fragmented, legacy, terrestrial technologies to deliver the fully integrated solutions that make a significant contribution to all of the day-to-day practicalities of the industry, from the company bottom-line through to employee welfare considerations. The unforgiving environments within which oil and gas field exploration and extraction occurs mean that communications system reliability is not a luxury, but a lifeline. Reliance cannot be placed on poorly integrated, or entirely un-integrated ad hoc solutions, each of which is designated as an individual solution to an individual communications requirement, for voice, or for fax, or for data. This does not necessarily mean that modern, state-of-the-art terrestrial-based communication technologies have no role whatsoever to play in the communications portfolios of oil and gas companies. They do, but very much within the context of fully integrated, seamless, solutions which bring together the satellite and the terrestrial in converged, or hybridised, platforms, such as satellite + GSM, satellite + WiFi, satellite + WiMax, etc.

Moreover, the de facto standard for today’s broadband communication applications is IP, and (as explored in more detail below) the nature of satellite traffic flow is a perfect match with the asymmetric nature of the Internet, whereas the very nature of terrestrial infrastructures – or ‘pipes’ – provide for an imperfect match with IP traffic flow.

O&G. Satellite technology has been benefiting the oil and gas sector for almost 30 years. How popular is it now in the industry?

MJ. As might be expected, the earliest examples of the use of satellite communications in the oil and gas sector were in the application known as Supervisory Control and Data Acquisition (SCADA). As a stand-alone application SCADA requires only comparatively low-bandwidth, and low-bandwidth and limited data flow-through was all that satellite could offer in the very early days of the Very Small Aperture Terminal (VSAT). Things are very different now with broadband satellite, and with applications that are dependent on high bandwidth. It is therefore in this context that satellite-based ICT applications are extremely popular in the oil and gas sector.

Satellite connection can provide always-on connection and be much more than just a means to basic level communications. It can enable oil and gas fields a facility to harness the power of emerging broadband applications in combination with real-time remote management tools that greatly exceed, but include, the features of traditional SCADA. Operationally, these broadband applications enable cost reductions by enabling real-time decision-making from central operations centres and by minimising system downtime. In terms of the perspectives of health and safety and of security, satellite communications offer the ability to authenticate an employee’s identification or to respond immediately to an emergency. In addition, satellite solutions can help improve the morale of remotely located personnel by providing access to e-mail and PSTN services for staying in touch with home.

O&G. What do you believe are the main reasons for its popularity?
MJ. To put it most simply this is because broadband satellite networks provide unprecedented coverage with scalability, reliability and economics that no other communications service platform can provide. Why is this? First of all, there is the lower costs; communications over satellite can be extremely cost-effective. The widespread deployment of satellite networks around the world in the last 25 years, advanced technology, and satellite hybrid solutions, have resulted in economies of scale that make total cost of service more attractive than ever before. Over one million receive-only terminals using IP multicasting have been deployed, together with nearly one million interactive terminals.

Secondly, the unmatched cost-effectiveness of broadband over satellite also arises from the unique combination of broadcast capabilities within full networking solutions, without limitation of distance, geography or location. IP over DVB is the de facto standard for broadband communications over satellite, and such systems clearly demonstrate their greatest cost-effectiveness by matching the asymmetric nature of Internet traffic. Satellite services can provide 35-45Mbps for backbone connection, with significantly greater data rates available for key business applications, e.g. videoconferencing. Multicasting speeds reach 2-10 Mbps and delivery of Internet to consumers can be achieved at DSL speed or greater.

The third factor is that satellite communications are flexible and scalable. Satellite access solutions can be deployed rapidly and economically with uniform quality of service at all user locations. High-speed and secure delivery of all types of broadband applications is achieved through a single, end-to-end solution that is more reliable than terrestrial alternatives, flexible to fit with present demand, and scalable to fit all future requirements.

O&G. How has satellite communication technology evolved in the last 30 years to improve safety and efficiency for the oil and gas arena?

MJ. The effect of satellite communications technology on oil and gas sector efficiency is best defined in terms of the following six key points:
• The evolution of true broadband services with guaranteed levels of traffic through-flow based on Committed Information Rates (CIRs).
• The development of an extended range of standard and customised solutions that support voice, data and video communications.
• The deployment of fully global network coverage, and backed-up with world-wide support facilities.
• The manufacture and roll-out of highly robust, highly reliable, satellite terminal equipment.
• The development of Service Level Agreements (SLAs) that reflect a fully-fledged commitment to customer needs.
• The evolution of services able to exploit developing technologies, and provide significant degrees of future-proofing.

O&G. Are there any other particular communication technologies that you believe are proving particularly successful at improving safety or efficiency in the oil and gas sector?

MJ. One element of satellite industry contemporary terminology that immediately comes to mind is hybridisation. In some instances the variability of the physical conditions within which oil & gas resource exploitation occurs, together with the need to connect multiple sites (both inland and offshore), plus the fact that government administrations may create policy and regulatory environments that are littered with obstacles to the deployment of certain types of technology platforms, dictates that oil and gas companies buy wide area networking services which, if necessary, utilise combinations of wire-line, terrestrial wireless, and satellite platforms. Where necessary, operators and service providers have moved, and continue to move, in the direction of providing multi-platform, multiple-technology, hybrid solutions to meet the complex and extensive voice, data, and video applications needs of the oil and gas end-user. In this context the oil and gas industry could and should leverage-off its industrial and economic muscle to encourage the evolution of more open and transparent regulatory and licensing regimes that, in themselves, will facilitate greater efficiencies.

O&G. How do you think satellite communication technology will continue to evolve – and how will this further aid oil and gas firms in the future?

MJ. In common with other telecommunications technologies, satellite communications is constantly evolving, offering solutions that provide for faster, more flexible, and more economic information flow. Access to the Internet, and to bandwidth-hungry IP-based applications, increasingly forms the core of oil and gas industry communications requirements. But, despite growth in the deployment of communications technologies that are able to provide much-needed broadband access, end-users in key end-user vertical markets – such as the oil and gas sector – are calling-out for both future-proof solutions and cheaper access through reduced bandwidth pricing. Important considerations are: How can satcoms operators strive to meet this demand for ever greater cost-effectiveness, and should the objective of greater bandwidth value-for-money be achieved through improved optimisation of a limited resource – that is, bandwidth – rather than fewer dollars and cents on the price tag? How can the telecoms service providers approach the need for the increased customisation demanded by the oil & gas sector, and does more need to be done to achieve an improved understanding of buyer behavior in the oil and gas sector?

The interplay of bandwidth demand and supply is a significant factor in the communications cost-effectiveness equation of any industry. In the oil and gas sector this applies even more so due to the wide range of different locations around the world within which the industry’s segments operate, and where the availability of terrestrial and satellite bandwidth able to support these demands varies widely.