Offshore Decommissioning Market Size was valued at USD 5.2 billion in 2021. The offshore decommissioning market industry is projected to grow from USD 5.5 Billion in 2022 to USD 9.0 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 7.10% during the forecast period (2024 - 2030). Increasing number of orphaned wells and the presence of big mature offshore oilfields are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
June 2024: Tetra Technologies has announced a strategic partnership with a leading offshore decommissioning firm to enhance its capabilities in well plugging and abandonment services. The collaboration aims to leverage advanced technologies and optimize the efficiency of decommissioning projects.
The deepwater decommissioning market is developing. This is due to an increase in the number of aged oil and gasoline platforms around the world. The diminution in crude oil or natural gas production from manufacturing wells is the primary cause of an oil field's decommissioning. Regulatory agencies in individual countries have established legal rules for offshore oil and gas operations, which will favorably impact market CAGR throughout the projection period.
Furthermore, a jump in demand for oil and gas is expected to drive market expansion in the coming years. Low oil prices and problems in sustaining the fields have increased the possibility for offshore decommissioning approaches in recent years. New oil deposits are being discovered and improved is another factor driving the Offshore Decommissioning Market is the presence of offshore (typically deep water) regions all over the world. The expense of decommissioning such oil wells or systems is substantial. This presents several technical hurdles. Similarly, the recent drop in oil prices is expected to be a major impediment not only to oil and gas exploration and production, but also to decommissioning operations.
Offshore decommissioning entails safely sealing matured and nonproductive wells in the earth's surface as well as disposing of offshore oil production equipment. This is a legislative requirement set by the Petroleum Act 1998 of the United Kingdom parliament. Decommissioning is a rapidly rising area of the petroleum industry, with several opportunities and low hazards. Infrastructure aging and mature oilfields, particularly in the North Sea and Gulf of Mexico, are major drivers of the global offshore decommissioning business. Furthermore, a drop in crude oil prices is expected to boost growth in the offshore decommissioning business. Some of the reasons inhibiting the Offshore Decommissioning Market growth include the risk associated and the high cost of decommissioning.
However, depending on the location, temperature, and laws, the expensive cost of decommissioning platforms can differ wildly. It is a difficult process that necessitates using various tools and competent operators. These operations on either side are carried out on oilfields that have become a burden for the corporation. This will drive the offshore decommissioning market revenue.
The Offshore Decommissioning Market segmentation, the market is divided into service, project management, engineering, planning, permitting, and regulatory compliance segments. Platform preparation, well pigging and abandonment, conductor removal, mobilization and demobilization of derrick barges, platform removal, decommissioning of pipelines and power cables, materials disposal, and site clearance the well plugging and abandonment segment held the largest market share in 2020, owing to strong demand from the European market. Well plugging and abandonment can account for up to 49% of a project's total decommissioning cost.
The Offshore Decommissioning Market data, based on application, it is divided into shallow water and deepwater segments based on the depth at which decommissioning projects take place. Because of its lower operational costs, the shallow water segment was the largest market and is expected to maintain its lead over the deepwater segment. However, because many platform installations are now at deepwater and ultra-deepwater depths, the deepwater segment will compete with shallow water in the future.
Figure 2: Offshore Decommissioning Market, by Application, 2024 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The global offshore decommissioning industry is divided into service, project management, engineering, planning, permitting, and regulatory compliance segments. Platform preparation, well pigging and abandonment, conductor removal, mobilization and demobilization of derrick barges, platform removal, decommissioning of pipelines and power cables, materials disposal, and site clearance
The well plugging and abandonment segment held the largest market share in 2020, owing to strong demand from the European market. Well plugging and abandonment can account for up to 49% of a project's total decommissioning cost.
By Region, the study provides the market insights for offshore decommissioning into North America, Europe, Asia-Pacific and Rest of the World. North America offshore decommissioning market accounted for USD 2.2 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. As well as, the region accounted for the greatest number of oil-well commissions in the United States and Gulf of Mexico, where they have been establishing an "Ocean Program" to materialize efforts.
Further, the major countries studied in the market report for offshore decommissioning are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: Offshore Decommissioning Market Share By Region 2021 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Offshore Decommissioning Market accounts for the second-largest market share due to the ageing oil and gas reserves, particularly in the UK and the North Sea. Further, the Germany Offshore Decommissioning market held the largest market share, and the UK Offshore Decommissioning Market was the fastest growing market in the European region
The Asia-Pacific Offshore Decommissioning Market is expected to grow at the fastest CAGR from 2022 to 2030. Additionally, due to increased investment, the Asia Pacific region is expected to have rapid growth in the web-scale IT industry. Moreover, China Offshore Decommissioning Market held the largest market share, and the India Offshore Decommissioning Market was the fastest growing market in the Asia-Pacific region
Major market players are spending a lot on R&D to increase their product lines, which will help the offshore decommissioning industry grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, market developments and collaboration with other organizations. Competitors in the industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market industry.
One of the primary business strategies manufacturers adopt in the global offshore decommissioning industry to benefit clients and expand the sector is manufacturing locally to reduce operating costs. In recent years, offshore decommissioning industry has provided medicine with some of the most significant benefits. The offshore decommissioning market major player such as Acteon Group, Aker Solutions, Allseas Group, Baker Hughes Company, Deep Ocean Group, Halliburton, Heerema Marine Contractors, Oceaneering International, and others. are working to expand the market demand by investing in research and development activities.
Aker Solutions ASA, situated in Oslo, provides the goods, systems, and services needed to liberate energy from sources like as oil, gas, offshore wind, and CO2 collection. Aker Kvaerner, which was founded in 1841, was the company's name until 2008. The company announced a merger with Kvrner ASA in 2020. In March 2021, Aker Solutions has signed a decommissioning agreement with Heerema Marine Contractors for the Heimdal and Veslefrikk fields off the coast of Norway. Three offshore installations from the Leimdal and Veslefrikk fields will be received, dismantled, and recycled as part of the scope.
Pieter Schelte Heerema founded Heerema Marine Contractors in 1948 as a modest construction company constructing oilfield platforms in Venezuela. In the 1960s, the business concentrated on offshore developments in the North Sea. Crane vessels were created by the business to raise massive offshore platforms and modules. In May 2021, On behalf of TAQA, Heerema Marine Contractors and AF Offshore Decom have begun one of the largest topside removal projects of its kind in the North Sea. The Brae Bravo removal campaign is TAQA's first major asset removal project, and as a late-life asset operator in the United Kingdom, safety and environmental impact principles are central to the project for TAQA and its partners.
In March 2021, Aker Solutions signed a contract with Heerema Marine Contractors for the decommissioning of the Heimdal and Veslefrikk fields offshore of Norway. Aker Solutions offers the goods, systems, and services needed to extract energy from sources like oil, gas, offshore wind, and CO2 capture. Three offshore installations from the Heimdal and Veslefrikk fields are included in the scope, along with their receiving, deconstruction, and recycling.
In January 2021, International services for the development and upkeep of maritime infrastructure are offered by the Dutch dredging and heavylift business Boskalis. bought out River Offshores' entire shareholding in the subsea services division. Boskalis' current position in the subsea services industry in Northwestern Europe, Africa, and the Middle East is strengthened by this acquisition. It is equipped to meet the needs of both the established oil and gas business and the quickly growing offshore wind market.
April 2024- The U.S. Department of the Interior (DOI), in a press release, revealed on its website a final rule from the Bureau of Ocean Energy Management (BOEM) 'to safeguard taxpayers from covering costs that should be carried by the oil and gas industry when offshore platforms need decommissioning. The DIO statement disclosed that by the new rule, the BOEM predicts the market will be needed to offer US6.9 billion in new financial assurances to protect American taxpayers from guessing industry decommissioning costs. The statement further added that to offer the industry the flexibility to fulfill the latest financial assurance requirements, BOEM will enable current lessees and grant holders to ask for phased-in payments over three years to fulfill the latest supplemental financial assurance demands required by the rule.
| Report Attribute/Metric | Details |
| Market Size 2021 | USD 5.2 billion |
| Market Size 2022 | USD 5.5 billion |
| Market Size 2030 | USD 9.0 billion |
| Compound Annual Growth Rate (CAGR) | 7.10% (2024-2030) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2030 |
| Historical Data | 2018 & 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Product Type,Operating Platforms, and Region |
| Geographies Covered | North America, Europe, AsiaPacific, and Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Acteon Group, Aker Solutions, Allseas Group, Baker Hughes Company, DeepOcean Group, Halliburton, Heerema Marine Contractors, Oceaneering International, and others. |
| Key Market Opportunities | deteriorating offshore infrastructure, particularly in the North Sea and Gulf of Mexico |
| Key Market Dynamics | Reducing risk through recycling and rigs to reef programs |
Offshore Decommissioning Market Highlights:
Frequently Asked Questions (FAQ) :
The Offshore Decommissioning Market size was valued at USD 5.2 Billion in 2021.
The Offshore Decommissioning Market is projected to grow at a CAGR of 7.10% during the forecast period, 2024-2030.
North America had the largest share in the global market for offshore decommissioning.
The key players in the market for offshore decommissioning are Acteon Group, Aker Solutions, Allseas Group, Baker Hughes Company, DeepOcean Group, Halliburton, Heerema Marine Contractors, Oceaneering International, and others.
The rise in oil and gas industry is the main factor for the growth of offshore decommissioning market forecasted period.
Leading companies partner with us for data-driven Insights.
Kindly complete the form below to receive a free sample of this Report
Team Lead - Research Anshula mandaokar holds an academic degree in chemical engineering and has been contributing to the field for more than 5 years. she has expertise in market research and business consulting and serves as a team lead for a reputed market research firm under the chemicals and materials domain spectrum. she has worked on multiple projects, generating explicit results in a quick turnaround time. her understanding of data interpretation justifies her role as a leader.
Get in Touch
© 2024 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
