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Large, established oilfields in offshore locations, as well as an uptick in the number of orphaned wells, are driving the sector's expansion.
The goal of offshore decommissioning is to permanently plug a well to prevent hydrocarbon or water escape or cross-flow into neighbouring formations, and to remove all offshore infrastructure from the seafloor and water column. Decommissioning is a new industry that is expected to grow at the fastest rate over the next few years. The North Sea and the Gulf of Mexico are two regions where a large number of offshore oil and gas facilities have reached the end of their useful lives and are no longer cost-effective to maintain. Over half of the world's hydrocarbons come from these ageing, mature fields. With this plan, we hope to aid the energy industry while also keeping and creating new jobs. It is estimated that in Alberta alone, 5,200 new jobs will be created because to the cleanup funds. In these provinces, the federal government wants to help firms avoid bankruptcy and reach their environmental goals while also creating immediate jobs. As a result, governments around the world have increased their spending on decommissioning abandoned wells in response to the growing number of wells that have been left unattended. This is what will drive the offshore decommissioning industry forward in the next years.
The offshore decommissioning industry is growing. This is due to the global proliferation of ageing oil and gasoline platforms. The decline in output from production wells is the primary factor in the decision to shut down an oil field. The growth rate of the market is expected to be positively impacted by the creation of legal guidelines for offshore oil and gas operations by regulatory authorities in various countries throughout the course of the forecast year. Increased demand for oil and gas is expected to drive market growth in the coming years. As a result of low oil prices and challenges sustaining the fields, offshore decommissioning methods have become more likely in recent years. Offshore (often deep water) areas already exist all over the world, which is another factor propelling the offshore decommissioning business. There have been recent discoveries and enhancements of oil reservoirs. Oil well and system decommissioning is an expensive process. There are numerous technological challenges associated with this. Decommissioning efforts are also expected to be severely hampered by the recent drop in oil prices, just as exploration and production.
Disposal of offshore oil production equipment and the safe sealing of defunct wells are also part of offshore decommissioning. This is required by law according to the Petroleum Act of 1998, which was passed by the British parliament. Decommissioning is a rapidly expanding area of the petroleum industry that presents numerous advantages and few disadvantages. The North Sea and the Gulf of Mexico, in particular, are significant drivers of the worldwide offshore decommissioning market due to their advanced oilfields and ageing infrastructure. The offshore decommissioning business is also expected to grow as a result of the recent drop in crude oil prices. Offshore decommissioning is a potentially lucrative sector, but it is being held back by the inherent dangers and high costs of the process.
The cost of decommissioning a platform, however, may vary widely depending on factors including location, weather, and regulations. It's a complicated procedure that calls for a wide variety of instruments and the expertise of trained workers. These activities take place on oilfields that are a financial drain for the company. This is good news for the offshore decommissioning industry's bottom line. Topside, substructure, subinfrastructure, and other segments make up the type-based divisions of the offshore decommissioning industry. The topsides of an offshore platform account for the vast bulk of the platform's total mass, hence big lift vessels and other specialised removal equipment are required for their removal. Therefore, in terms of structure, the topsides market is the largest.
After a well has served its purpose, it must be sealed off and left unattended. To perform a plug and abandonment (P&A), cement plugs are inserted into the wellbore to seal off the reservoir and any other fluid-containing formations. In mature offshore regions like the North Sea and the Gulf of Mexico, the number of wells that must be permanently sealed and abandoned is rising at an alarming rate. Overall, 2,624 wells are predicted to be shut down in the North Sea between 2019 and 2028, as stated in Oil & Gas UK's Decommissioning insight 2019. The demand for offshore decommissioning services is being fueled, in part, by the government's growing emphasis on well plug & abandonment operations. For instance, a Democrat in the US House of Representatives proposed a bill in April 2021 that would authorise USD 8 billion to plug and clean up abandoned oil wells around the country. This would provide employment opportunities for oil and gas employees while also lowering emissions that contribute to global warming. The growing importance of well abandonment and plugging is a key factor driving the offshore decommissioning industry. While platforms with similar attributes and configuration may have similar decommissioning costs, these costs might vary greatly based on factors such as location, climate, and legislation. There is a wide variety of machinery and trained personnel needed for the decommissioning process. During the hydrocarbon production phase, a corporation might make money with the help of an oilfield. However, oilfields that have become a liability to the business must undergo decommissioning procedures. Oil and gas infrastructure decommissioning is a costly process. It is estimated that in shallow areas, such as the Gulf of Mexico, it may cost between USD 15 million and USD 20 million to completely remove a platform. According to Oil and Gas UK, the cost to decommission a facility in deep water, such as the North Sea, can range from £30 million for smaller platforms to £200 million for bigger ones.
Report Coverage
Global Offshore Decommissioning research report categorizes the market for global based on various segments and regions, forecasts revenue growth, and analyzes trends in each submarket. Global Offshore Decommissioning report analyses the key growth drivers, opportunities, and challenges influencing the global market. Recent market developments and Offshore Decommissioning competitive strategies such as expansion, product launch and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key Offshore Decommissioning market players and analyses their core competencies in each global market sub-segments.
Key Points Covered in the Report
Competitive Environment:
The research provides an accurate study of the major organisations and companies operating in the global Offshore Decommissioning market, along with a comparative evaluation based on their product portfolios, corporate summaries, geographic reach, business plans, Offshore Decommissioning market shares in specific segments, and SWOT analyses. A detailed analysis of the firms' recent news and developments, such as product development, inventions, joint ventures, partnerships, mergers and acquisitions, strategic alliances, and other activities, is also included in the study. This makes it possible to assess the level of market competition as a whole.
List of Major Market Participants
Acteon Group, Aker Solutions, Allseas Group, Baker Hughes Company, DeepOcean Group, Halliburton, Heerema Marine Contractors, Oceaneering International, and others.
Primary Target Market
Market Segment:
This study forecasts global, regional, and country revenue from 2019 to 2030. INFINITIVE DATA EXPERT has segmented the global Offshore Decommissioning market based on the below-mentioned segments:
Global Offshore Decommissioning Market, By Type
Topside
Substructure
Sub Infrastructure
Others
Global Offshore Decommissioning market, By Application
Shallow water
Deepwater
Global Offshore Decommissioning Market, By Service
Well plugging and Abandonment
Conductor Removal
Platform Removal
Others
Global Offshore Decommissioning market, Regional Analysis
The goal of offshore decommissioning is to permanently plug a well to prevent hydrocarbon or water escape or cross-flow into neighbouring formations, and to remove all offshore infrastructure from the seafloor and water column. Decommissioning is a new industry that is expected to grow at the fastest rate over the next few years. The North Sea and the Gulf of Mexico are two regions where a large number of offshore oil and gas facilities have reached the end of their useful lives and are no longer cost-effective to maintain. Over half of the world's hydrocarbons come from these ageing, mature fields. With this plan, we hope to aid the energy industry while also keeping and creating new jobs. It is estimated that in Alberta alone, 5,200 new jobs will be created because to the cleanup funds. In these provinces, the federal government wants to help firms avoid bankruptcy and reach their environmental goals while also creating immediate jobs. As a result, governments around the world have increased their spending on decommissioning abandoned wells in response to the growing number of wells that have been left unattended. This is what will drive the offshore decommissioning industry forward in the next years.
The offshore decommissioning industry is growing. This is due to the global proliferation of ageing oil and gasoline platforms. The decline in output from production wells is the primary factor in the decision to shut down an oil field. The growth rate of the market is expected to be positively impacted by the creation of legal guidelines for offshore oil and gas operations by regulatory authorities in various countries throughout the course of the forecast year. Increased demand for oil and gas is expected to drive market growth in the coming years. As a result of low oil prices and challenges sustaining the fields, offshore decommissioning methods have become more likely in recent years. Offshore (often deep water) areas already exist all over the world, which is another factor propelling the offshore decommissioning business. There have been recent discoveries and enhancements of oil reservoirs. Oil well and system decommissioning is an expensive process. There are numerous technological challenges associated with this. Decommissioning efforts are also expected to be severely hampered by the recent drop in oil prices, just as exploration and production.
Disposal of offshore oil production equipment and the safe sealing of defunct wells are also part of offshore decommissioning. This is required by law according to the Petroleum Act of 1998, which was passed by the British parliament. Decommissioning is a rapidly expanding area of the petroleum industry that presents numerous advantages and few disadvantages. The North Sea and the Gulf of Mexico, in particular, are significant drivers of the worldwide offshore decommissioning market due to their advanced oilfields and ageing infrastructure. The offshore decommissioning business is also expected to grow as a result of the recent drop in crude oil prices. Offshore decommissioning is a potentially lucrative sector, but it is being held back by the inherent dangers and high costs of the process.
The cost of decommissioning a platform, however, may vary widely depending on factors including location, weather, and regulations. It's a complicated procedure that calls for a wide variety of instruments and the expertise of trained workers. These activities take place on oilfields that are a financial drain for the company. This is good news for the offshore decommissioning industry's bottom line. Topside, substructure, subinfrastructure, and other segments make up the type-based divisions of the offshore decommissioning industry. The topsides of an offshore platform account for the vast bulk of the platform's total mass, hence big lift vessels and other specialised removal equipment are required for their removal. Therefore, in terms of structure, the topsides market is the largest.
After a well has served its purpose, it must be sealed off and left unattended. To perform a plug and abandonment (P&A), cement plugs are inserted into the wellbore to seal off the reservoir and any other fluid-containing formations. In mature offshore regions like the North Sea and the Gulf of Mexico, the number of wells that must be permanently sealed and abandoned is rising at an alarming rate. Overall, 2,624 wells are predicted to be shut down in the North Sea between 2019 and 2028, as stated in Oil & Gas UK's Decommissioning insight 2019. The demand for offshore decommissioning services is being fueled, in part, by the government's growing emphasis on well plug & abandonment operations. For instance, a Democrat in the US House of Representatives proposed a bill in April 2021 that would authorise USD 8 billion to plug and clean up abandoned oil wells around the country. This would provide employment opportunities for oil and gas employees while also lowering emissions that contribute to global warming. The growing importance of well abandonment and plugging is a key factor driving the offshore decommissioning industry. While platforms with similar attributes and configuration may have similar decommissioning costs, these costs might vary greatly based on factors such as location, climate, and legislation. There is a wide variety of machinery and trained personnel needed for the decommissioning process. During the hydrocarbon production phase, a corporation might make money with the help of an oilfield. However, oilfields that have become a liability to the business must undergo decommissioning procedures. Oil and gas infrastructure decommissioning is a costly process. It is estimated that in shallow areas, such as the Gulf of Mexico, it may cost between USD 15 million and USD 20 million to completely remove a platform. According to Oil and Gas UK, the cost to decommission a facility in deep water, such as the North Sea, can range from £30 million for smaller platforms to £200 million for bigger ones.
Report Coverage
Global Offshore Decommissioning research report categorizes the market for global based on various segments and regions, forecasts revenue growth, and analyzes trends in each submarket. Global Offshore Decommissioning report analyses the key growth drivers, opportunities, and challenges influencing the global market. Recent market developments and Offshore Decommissioning competitive strategies such as expansion, product launch and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key Offshore Decommissioning market players and analyses their core competencies in each global market sub-segments.
| REPORT ATTRIBUTES | DETAILS |
|---|---|
| Study Period | 2017-2030 |
| Base Year | 2022 |
| Forecast Period | 2022-2030 |
| Historical Period | 2017-2021 |
| Unit | Value (USD Billion) |
| Key Companies Profiled | Acteon Group, Aker Solutions, Allseas Group, Baker Hughes Company, DeepOcean Group, Halliburton, Heerema Marine Contractors, Oceaneering International, and others. |
| Segments Covered | • By Product |
| Customization Scope | Free report customization (equivalent to up to 3 analyst working days) with purchase. Addition or alteration to country, regional & segment scope |
Key Points Covered in the Report
- Market Revenue of Offshore Decommissioning Market from 2021 to 2030.
- Market Forecast for Offshore Decommissioning Market from 2021 to 2030.
- Regional Market Share and Revenue from 2021 to 2030.
- Country Market share within region from 2021 to 2030.
- Key Type and Application Revenue and forecast.
- Company Market Share Analysis, Offshore Decommissioning competitive scenario, ranking, and detailed company
profiles. - Market driver, restraints, and detailed COVID-19 impact on Offshore Decommissioning
Market
Competitive Environment:
The research provides an accurate study of the major organisations and companies operating in the global Offshore Decommissioning market, along with a comparative evaluation based on their product portfolios, corporate summaries, geographic reach, business plans, Offshore Decommissioning market shares in specific segments, and SWOT analyses. A detailed analysis of the firms' recent news and developments, such as product development, inventions, joint ventures, partnerships, mergers and acquisitions, strategic alliances, and other activities, is also included in the study. This makes it possible to assess the level of market competition as a whole.
List of Major Market Participants
Acteon Group, Aker Solutions, Allseas Group, Baker Hughes Company, DeepOcean Group, Halliburton, Heerema Marine Contractors, Oceaneering International, and others.
Primary Target Market
- Market Players of Offshore Decommissioning
- Investors
- End-users
- Government Authorities
- Consulting And Research Firm
- Venture capitalists
- Third-party knowledge providers
- Value-Added Resellers (VARs)
Market Segment:
This study forecasts global, regional, and country revenue from 2019 to 2030. INFINITIVE DATA EXPERT has segmented the global Offshore Decommissioning market based on the below-mentioned segments:
Global Offshore Decommissioning Market, By Type
Topside
Substructure
Sub Infrastructure
Others
Global Offshore Decommissioning market, By Application
Shallow water
Deepwater
Global Offshore Decommissioning Market, By Service
Well plugging and Abandonment
Conductor Removal
Platform Removal
Others
Global Offshore Decommissioning market, Regional Analysis
- Europe: Germany, Uk, France, Italy, Spain, Russia, Rest of Europe
- The Asia Pacific: China,Japan,India,South Korea,Australia,Rest of Asia Pacific
- South America: Brazil, Argentina, Rest of South America
- Middle East & Africa: UAE, Saudi Arabia, Qatar, South Africa, Rest of Middle East & Africa
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