Offshore Decommissioning Market to Observe Strong Growth in Near Future

According to Oil & Gas UK, in decommissioning insight 2019, overall, 2,624 wells are expected to be decommissioned in the North Sea during 2019-2028. Furthermore, increasing government focus on well plug & abandonment activities is driving the market for #offshore #decommissioning services. Increasing need for well plugging & abandonment is driving the offshore decommissioning market.

The global offshore decommissioning market size is expected to grow from an estimated USD 5.2 billion in 2021 to USD 8.0 billion by 2027, at a CAGR of 7.4%. Aging offshore oil & gas infrastructure and maturing fields are driving the #offshoredecommissioning industry. Low #oilprices of the past couple of years have made it even more difficult to maintain low production mature reserves, driving companies to accelerate decommissioning plans for such #oilandgas fields.

The process of crude oil & gas extraction requires a significant amount of infrastructure. Onshore projects require relatively less infrastructure than their offshore counterparts. Installing these infrastructure elements such as pipelines, platforms, rigs, and conductors is one of the most complex processes of oil & gas production. More than 7,500 offshore oil and gas platforms in 53 countries will become obsolete in the next few decades, with the eventual removal of rapidly growing infrastructure a looming issue. This is expected to create an #opportunity for offshore decommissioning market.

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Europe is expected to be the largest offshore decommissioning market, driven mainly by activities in the #uk #norway and #netherlands . The UK #offshoreindustry leads other regions in terms of well-developed and mandatory decommissioning guidelines. In #europe over 950,000 tons of topsides are scheduled for removal across the #northsea out of which more than 605,000 tons will be from #ukcs . The UK is expected to spend about EUR 15.3 billion on decommissioning, over the next ten years. Approximately, 2,400 wells are expected to be decommissioned across the whole North Sea and West of the Shetland region, by 2027.

North America will also play an important role in driving demand for offshore decommissioning. #northamerica is the biggest market in terms of the number of platforms decommissioned per year. Most offshore decommissioning takes place in the #us #gulfofmexico where the #rigs to Reef policy have been in practice for a long time.

Key Market Players:

Some of the key players in the Offshore Decommissioning Market include Heerema Marine Contractors (The Netherlands), Royal Boskalis Westminster N.V. (The Netherlands), Petrofac (Jersey), Oceaneering International (US), Baker Hughes Company (US), Halliburton (US), and Schlumberger (US).