Authored By: Sarah
11 Jul 2024

 Offshore Decommissioning Market Size to grow by USD 2505.3 million between 2024-2028

According to a research report “ Offshore Decommissioning Market” by Type (Shallow water, Deepwater) Service (Well plugging and abandonment, Platform removal, Permitting and regulatory compliance, Platform preparation, Others) Geography (Europe, North America, APAC, South America, Middle East and Africa)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 2505.3 million, at a CAGR of almost 6.78% during the forecast period. In the offshore oil and gas industry, the economic viability of continuing operations in mature fields becomes a significant concern as production declines and operating costs rise. Approximately two-thirds of global oil and gas production comes from such fields. With the decrease in new and major discoveries, operators must maximize returns on existing assets. Decommissioning an offshore oil or gas well becomes a necessary business decision when the revenue generated from selling crude oil or natural gas is insufficient to cover the escalating operational expenses. This situation renders the facility a liability for the oil company.

Browse market data tables, figures, and in-depth TOC on “Offshore Decommissioning Market” by Type (Shallow water, Deepwater) Service (Well plugging and abandonment, Platform removal, Permitting and regulatory compliance, Platform preparation, Others) Geography (Europe, North America, APAC, South America, Middle East and Africa) Global Forecast to 2028. Download Free Sample

 

By Type, the Shallow water segment is projected to dominate the market size in 2024

In the realm of offshore energy production, well plugging and abandonment (P&A) represent crucial end-of-well operations. These processes ensure maximum safety and efficiency in isolating hydrocarbon-bearing formations and water zones with distinct pressure regimes. The primary objective of P&A is to permanently close producing wells that no longer possess sufficient hydrocarbon potential or have been completely drained. This operation mitigates the risk of pressure build-up and cross-flow within wells, thereby restoring the natural integrity of the well formation. The process commences with the removal of existing downhole tools and equipment, followed by the wellbore cleanout activity.

By Service, Well plugging and abandonment  segment is expected to hold the largest market size for the year 2024

In the offshore decommissioning market, shallow water projects typically refer to areas with depths below 1000 feet (305 meters). Jackup rigs, submersibles, and drill barges are commonly utilized for such projects. Among these, jackup rigs are the most popular choice due to their practicality in water depths ranging from 300 to 1000 feet (91 to 305 meters). The selection of a jackup rig is contingent upon several factors, including its age, specifications, location, and potential weather conditions. These rigs are increasingly advanced, enabling them to operate in deeper waters as well.

Europe is forecasted to hold the largest market size by region in 2024

The Offshore Decommissioning Market encompasses the process of removing and disposing of structures and facilities used for oil and gas exploration and production in the ocean. This market is witnessing significant growth due to increasing oil prices and stringent regulations for environmental safety. Companies are investing in advanced technologies to streamline the decommissioning process and minimize costs. The market is expected to expand at a robust pace, driven by the decommissioning of aging offshore installations worldwide.

The Offshore Decommissioning Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:

  • Able UK Ltd.
  • AF Gruppen Norge AS
  • Aker Solutions ASA
  • Allseas Group SA
  • Baker Hughes Co.
  • Boskalis
  • DeepOcean Group Holding BV
  • DNV Group AS
  • Halliburton Co.
  • Heerema International Group
  • John Wood Group PLC
  • Oceaneering International Inc.
  • Perenco
  • Petrofac Ltd.
  • Ramboll Group AS
  • Saipem S.p.A.
  • Schlumberger Ltd.
  • Subsea 7 SA
  • TechnipFMC plc
  • Weatherford International Plc
.

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Research Analysis Overview

Offshore decommissioning refers to the process of safely and efficiently removing obsolete structures, such as platforms and pipelines, from the deepwater and shallow water oil and gas industries. This complex process involves several stages, including site clearance, materials disposal, platform removal, conductor removal, and platform preparation. Permitting and regulatory requirements, project management, and liability considerations are also crucial aspects of offshore decommissioning. Techniques used in offshore decommissioning include polymer insertion, gas injection, and enhanced oil recovery. Artificial aids, such as secondary and primary phase production platforms, are often used to facilitate decommissioning. Abandoned oil wells, conductors, and pipelines are also part of the decommissioning process. The offshore decommissioning market is affected by various factors, including the condition of the reservoir, wellbore, and cement plugs, the supply chain, and crude oil prices. The global offshore decommissioning market has an international footprint, with many players in the supply chain. The market is also influenced by quarantine restrictions, international regulations, and lockdown measures, which can impact manufacturing facilities and crewmembers. Despite the challenges, the offshore decommissioning market is expected to grow, driven by the need to address the increasing number of obsolete structures and the potential for cost savings through the reuse of materials and technologies. The market is also expected to benefit from the development of new techniques, such as gas injection and enhanced oil recovery, which can increase the efficiency and sustainability of the decommissioning process.

Market Research Overview

Offshore decommissioning is a critical process in the oil and gas industry, involving the removal of obsolete platforms, pipelines, and other sub-infrastructure from offshore regions. This complex process includes various stages such as site clearance, permitting and regulatory compliance, engineering, and project management. In deepwater and ultradeepwater depths, derrick barges are often used for platform removal, while conductor removal and pipeline decommissioning require specialized techniques. Power cables connected to these structures must be disconnected and disposed of properly. Natural gas pipelines may be decommissioned through methods such as gas injection or enhanced oil recovery. Site clearance and materials disposal are crucial aspects of offshore decommissioning, which can incur significant operational costs. Permitting and regulatory compliance play a significant role in offshore decommissioning, with international footprints and quarantine restrictions adding complexity. Skilled operators and crewmembers are essential for the safe and efficient execution of these projects. The supply chain for offshore decommissioning includes various stakeholders, from engineering firms to manufacturing facilities. Crude oil prices and liability considerations are significant factors influencing the timing and scope of offshore decommissioning projects. In some cases, abandoned oil wells may be kept in a secondary or primary phase production to delay decommissioning. Fluid-bearing formations and reservoir management are also essential considerations in offshore decommissioning. Cement plugs and wellbore abandonment are critical aspects of platform preparation. In summary, offshore decommissioning is a complex process that involves various stages, from permitting and engineering to site clearance and materials disposal. It requires a skilled workforce, specialized equipment, and careful planning to ensure the safe and efficient execution of these projects while minimizing environmental impact and reducing operational costs.

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