Latest News- Offshore Decommissioning Market: Shallow water is expected to lead the Type segment during 2025-2029

The Offshore Decommissioning Market is being driven by Maturing oil and gas fields and aging platforms

The Offshore Decommissioning Market is expected to grow at a CAGR of 7.9% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 3189 million. The global transition towards renewable energy sources, such as wind, solar, and geothermal, is gaining momentum, with the US Energy Information Administration (EIA) projecting a 3.1% annual increase in worldwide renewable energy consumption between 2024 and 2050. This growth rate surpasses that of petroleum and other liquids (0.6%), coal (0.4%), and natural gas (1.1%). This trend is expected to hinder the expansion of the oil and gas industry, thereby fueling the growth of the offshore decommissioning market as aging oil and gas infrastructure is retired and repurposed for renewable energy projects. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on segments_for_ai.nslist

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Maturing oil and gas fields and aging platforms
• Strong regulation for offshore decommissioning activities
• High potential of offshore marginal fields

However, the market also witnesses some limitations, which are as follows:

• High cost associated with offshore decommissioning projects
• Technical challenges associated with decommissioning activities
• Lack of stringent environmental regulation in developing countries

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Market Scope in Offshore Decommissioning Market Research Report

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Research Analysis Overview

Offshore decommissioning involves the process of retiring obsolete manufacturing facilities in the oil and gas industry. Due to lockdown measures and quarantine restrictions, this market has faced challenges in recent times. International footprints and crewmembers are affected, leading to delays in crude oil prices-driven projects. Supply chain disruptions impact the use of cement plugs, wellbore abandonment, and reservoir plugging in fluid-bearing formations. The bill for decommissioning abandoned oil wells, pipelines, and conductors brings liability concerns. Primary and secondary phase decommissioning employ artificial aids like enhanced oil recovery through gas injection and polymer insertion. Project management, permitting, and regulatory approvals, platform preparation, conductor removal, and platform removal follow, leading to materials disposal and site clearance in shallow and deepwater.

Market Research Overview

The global oil and gas equipment and services market encompasses manufacturers, providers, and contractors involved in the upstream sector, supplying essential products and services. This critical manufacturing industry is poised for moderate expansion, as calculated by Technavio, based on the consolidated revenue generated. Factors propelling market growth include escalating energy demand and the burgeoning power industry, leading to heightened sales of drilling equipment. Additionally, international footprints, lockdown measures, quarantine restrictions, and crewmembers' availability are significant considerations impacting market dynamics.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
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