Satellite communications have stabilized to the point where applications are set to take off for both voice communications and data.

Portable satellite services are now gaining momentum, especially in the oil and gas market. Although portable satellite capabilities have not lived up to the potential of traditional means of communication in terms of speed and bandwidth for data transfer, this technology will have an impact on certain applications where high speed is not critical, such as remote monitoring and control.

The portable/mobile satellite industry is finally emerging from a period of intense competition, financial difficulties and bad publicity. While tried-and-true services such as Inmarsat and VSAT have served the satcom industry well for years, many of the visible new companies in the LEO (Low Earth Orbit) arena - Globalstar and ICO for example - promised much in the way of capabilities and business growth. Some are only now resolving their financial issues. Most experienced failure due to their inability to meet consumer expectations and misdirected efforts in targeting inappropriate markets. These failures compromised the long-term viability of the technology in the users' minds.

The shakeout is now ending, and a handful of major players have survived to bring a stronger and more profitable business model to the table. For example, Iridium is crossing over to profitability after 2 years of business under new ownership and now has the impetus to fund additional developments and services that are in keeping with industry needs. This new-found confidence has meant that satcom companies can invest more in developing new services targeted to the right markets - including oil and gas.
Within the oil and gas sector, satellite technology has been relatively well established as an invaluable communications and logistics tool in exploration activities. As data capabilities increase, satcom operators are well-positioned to extend the benefits of portable satellite technology to address production and distribution functions as well. These will benefit remote tracking, monitoring and control at wellheads, pipelines, delivery routes and gas stations, among other applications.

The ability to capture and transfer information remotely will play an increasingly important role to the oil and gas industry as industry players strive to maintain competitiveness and manage operating costs. Much will be gained through real-time communications in the way of monitoring equipment performance and expediting deployment of field personnel and coordinating their activities. While this remote functionality has been a mainstay in more traditional applications and/or less remote regions for some time, satellite service networks are only now coming to the fore with functionality that will extend well beyond voice communication. This capability will play an important role for the industry as it now can address data delivery in applications where none could be had before.

There are several key factors that have fallen into place to bring us to where we are now and indicate where we can expect to deploy the technology in the future. For one thing, the cost of equipment has dropped to much more affordable levels with much smaller, lighter and more flexible equipment. In addition, airtime rates have decreased to the point where the cost/benefit ratio is now justified.

Airtime rates are now as low as US $0.99 to $1.50 per minute, compared to $3 to $6 only a year ago. With the improved portability and price, services are also much more flexible in addressing field personnel's needs, ranging from helicopter and maritime crew transport communications to remote equipment monitoring.

Deployment for these applications is gaining momentum, and service providers are now taking steps to move the technology to a new level of functionality through innovative programs and services. New services on the horizon include remote SCADA connectivity using portable handheld units linked to PCs and automated customized billing services to encourage more widespread usage at less cost.
Connecting with remote SCADA

SCADA functionality in remote locations is one key area where satellite services are coming into play in a significant way. Satellite service providers have been working with oil and gas companies in pilot projects that have been highly effective in improving operations in the field on a number of levels.

Iridium-based SBD messaging is one of the most significant breakthroughs in this area to date, because it delivers secure, stable, real-time, two-way communications over the Internet at an affordable rate. This capability will be an important catalyst for implementing remote SCADA functionality in previously inaccessible locations. Iridium-based services are especially effective, because they can deliver both the physical flexibility for easy configuration and significantly lower airtime rates.

More flexible calling options

A key area in satellite communications that has evolved to address the needs of oil and gas operations is billing and administration services. Because of the high cost of equipment and airtime rates, satellite communications have historically been relegated to specific individuals and/or functions. Where field crew members have been given access, administrators have had to go through the cost and inconvenience of putting in measures to track calls and deduct service charges from each individual's pay.

The high cost of usage has led to access and security issues. Since it is difficult to track individual usage of a phone that is part of a company "pool," abuse of privileges can become a problem. To alleviate these concerns, phones have to be strictly monitored to ensure authorized use.

Users are now shifting their business model to one that combines subscription and pre-paid services for single satellite systems. Subscription fees cover traditional operational needs, while crewmembers will use a pre-paid calling card at a single flat rate per minute that can be billed to the company account under a separate heading. Alternatively, minutes can automatically be charged back to the field worker. This ability to provide access to field crews can be a compelling incentive when offered as part of basic benefits packages.

This type of service promises to be a significant factor in managing usage costs, increasing access to telephone systems on-site and boosting employee morale. It will also be an effective means for tracking and managing corporate expenditures when satellite phones are part of a pool for use by multiple callers.

A growing industry trend

For the oil and gas industry, communications on all fronts is vital - from exploration to production to distribution. For many locations, communication is an especially significant challenge, which has meant sacrifices in terms of numbers of portable systems deployed in the field and/or increases in overall expenditures that directly impact profitability.

The industry has been waiting for satellite communications to become more viable in terms of cost, convenience and capability for some time. It is only in the past months that this has come to pass, and oil and gas companies are beginning to see where satellite can take them beyond simple voice and paging services. The progression from voice to data will continue to move forward in the months to come, and with it will come new opportunities to improve operations, reduce costs and increase competitiveness over the long term. And while satellite will never represent a wholesale replacement technology, it will play a key role in integrating overall operations.

Mobile/portable satellite technology and commercial offerings are no longer considered esoteric applications to be used on a sporadic basic. Rather, they are now becoming part of everyday operations, and as such, will be indispensable tools for oil and gas companies to operate and stay competitive.

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