Offshore Decommissioning Market is expected to grow a CAGR of 5.9% by 2030: Coherent Market Insights
CMI
6 min read
CMI
Offshore Decommissioning is the process of safely retiring and dismantling aging and obsolete offshore oil and gas facilities, such as platforms, wells, and pipelines, once they reach the end of their productive life.
Burlingame, Nov. 15, 2023 (GLOBE NEWSWIRE) -- According to Coherent Market Insights, Offshore Decommissioning Market is estimated to be valued at US$ 6.3 billion in 2021 and is expected to exhibit a CAGR of 5.9% during the forecast period (2023-2030). Offshore decommissioning is a process of safe and responsible removal and deposition of offshore oil and gas infrastructure such as wells and platforms. This process is carried out when such infrastructure reach their life end. The process includes, dismantling structures, well plugging, and maintaining the environmental protection in the marine environment.
Key Trends and Analysis of the Global Offshore Decommissioning Market:
Shallow water segment, based on water depth is dominating the global offshore decommissioning market. This trend is likely to boost growth of the market in the coming future. The demand for decommissioning is likely to increase in the near future, owing to rising aging structures in the U.K. and shallow North Sea continental shelf. North Sea structures are heavier and decommissioning of such heavy structures needs significant panning as well as equipment. This further adds into the decommissioning cost.
The number of abandoned wells is on the rise along with presence of huge mature offshore oilfields. When a well has reached end of its lifetime, it requires to be permanently abandoned and plugged. The operations of plug and abandoned wells need cement plugs in the wellbore for isolating the reservoir and fluid-bearing formations. With increasing number of such wells, the demand for offshore decommissioning is increasing. This factor is further driving growth of the global market.
Increasing number of governments are focusing on well plug and abandoned activities. Government of several countries are also investing in such operations. For instance, in April 2021, the U.S. parliament passed a bill, which enabled US$ 8 billion for cleaning up abandoned oil wells in the country, in order to create jobs for oil and gas labours. This move was also supposed to lower climate-warming emissions. Such government initiatives are driving growth of the market.
Market Key Developments:
In May 2021, Heerema Marine Contractors and AF Offshore Decome announced to have begun its one of the biggest topside removal project. The project is commenced in the North Sea on behalf of TAQA.
In June 2021, Baker Hughes announced the opening of an oil and gas multimodal facility (MMF) in Angola. The facility will be delivering a suite of products and services in oil and gas value chain.
Increasing number of major players adopting inorganic growth strategies to gain stronger hold in the market is creating multiple opportunities in the global offshore decommissioning market. For instance, in January 2021, Boskalis completed acquisition of all shares in the Rever Offshores’s subsea services business. The acquisition will allow Boskalis to boost its current position in the market.
Key Market Takeaways:
Global offshore decommissioning market is expected to exhibit a CAGR of 5.9% during the forecast period. The offshore decommissioning market is growing rapidly in response to the decreases prices of crude oil around the world.
On the basis of Process, Well plugging & abandonment Segment is expected to dominate the market during the forecast period and this is attributed to the rising demand from the European market.
On the basis of Service, Removal Segment is expected to dominate the market during the forecast period and this is attributed to the stringent regulations around removal of complete offshore platform for restoring the marine life and seafloor.
On the basis Water Depth, Shallow Segment is expected to dominate the market during the forecast period and this is attributed to the rising number of ageing structures in the North Sea and Gulf of Mexico.
On the basis of Geography, Europe is expected to hold a dominant position over the forecast period, due to presence of large number of maturing oil and gas fields.
Key players operating in the global offshore decommissioning market include Exxon Mobil Corporation, Acteon Group Limited, John Wood Group Plc., Topicus Finan BV, DeepOcean Group Holding B.V., AF Gruppen ASA, Allseas Group S.A., and Tetra Technologies Inc.
Global Offshore Decommissioning Market, By Decommissioning Service:
Removal, Disposal, Remediation and Environmental Studies
Modelling and Sampling
Waste Mapping and Handling
Impact Assessment Program and Decommissioning Plan
HAZID (Hazard Identification Study) and Safety Screening, Removal of Equipment with NORM
Stress Analysis, Lifting and Rigging Procedures
Transportation and Sea Fastening
Global Offshore Decommissioning Market, By Process :
Project Management Planning and Engineering
Permitting Compliance Regulatory Compliance
Platform Preparation
Well Plugging and abandonment
Conductor Removal
Mobilization & Demobilization of Derrick Barges
Platform Removal
Pipeline and Cable Decommissioning
Material Disposal Site clearance
Global Offshore Decommissioning Market, By Water Depth :
Shallow
Deep Water
Ultra Deep Water
Global Offshore Decommissioning Market, By Region
North America
U.S.
Canada
Europe
Germany
Italy
U.K.
France
Spain
Russia
Rest of Europe
Asia Pacific
China
Japan
Australia
India
ASEAN
South Korea
Rest of Asia Pacific
Latin America
Brazil
Mexico
Argentina
Rest of Latin America
Middle East & Africa
GCC Countries
Israel
South Africa
Rest of Middle East & Africa
Related Market Intelligence Reports:
Renewable Energy Technologies Market, by Energy Type (Solar, Wind, Tidal, Geothermal, Hydroelectric, and Others), by Application (Residential, Non Residential, and Others), by Region - Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2022-2028
Offshore Pipeline Market, by Product Type (Oil, Gas, and Refined Products), by Pipeline Type (Infield Offshore Pipeline, Export Offshore Pipeline, and Transmission Offshore Pipeline), by Material Type (Carbon Steel, Stainless Steel, Alloy Steel, Composites, Specialty Plastics, and Others), by Diameter (Below 16 inches, 16-20 inches, 20-24 inches, and Above 24 inches), and by Region (North America, Latin America, Asia Pacific, Europe, Middle East, and Africa) - Size, Share, Outlook, and Opportunity Analysis, 2022-2028
Browse through Coherent Market Insights Energy Research Reports.
About Us:
Coherent Market Insights is a global market intelligence and consulting organization focused on assisting our plethora of clients achieve transformational growth by helping them make critical business decisions. We are headquartered in India, having sales office at global financial capital in the U.S. and sales consultants in United Kingdom and Japan. Our client base includes players from across various business verticals in over 57 countries worldwide. We create value for clients through our highly reliable and accurate reports. We are also committed in playing a leading role in offering insights in various sectors post-COVID-19 and continue to deliver measurable, sustainable results for our clients.
