PUBLISHER: The Business Research Company | PRODUCT CODE: 1429884
PUBLISHER: The Business Research Company | PRODUCT CODE: 1429884
Offshore decommissioning is the process of ceasing oil and gas operations on an offshore platform and restoring the seafloor and ocean to their pre-lease conditions.
The primary services involved in offshore decommissioning include project management, engineering and planning, platform preparation, well plugging and abandonment, conductor removal, platform removal, pipeline and power cable decommissioning, material disposal and site clearance, and other related services. Project management encompasses activities such as defining project objectives, establishing checkpoints, creating various scenarios, and developing contingency plans. Different structures, including topside, substructure, and subsea infrastructure, are utilized in various applications such as shallow water and deep water within the context of offshore decommissioning.
The offshore decommissioning market research report is one of a series of new reports from The Business Research Company that provides offshore decommissioning market statistics, including offshore decommissioning industry global market size, regional shares, competitors with an offshore decommissioning market share, detailed offshore decommissioning market segments, market trends and opportunities, and any further data you may need to thrive in the offshore decommissioning industry. This offshore decommissioning market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The offshore decommissioning market size has grown strongly in recent years. It will grow from $5.88 billion in 2023 to $6.43 billion in 2024 at a compound annual growth rate (CAGR) of 9.2%. The expansion observed in the historical period can be attributed to the growing number of abandoned wells, increasing investments in the remediation of inactive oil and gas wells, and the development of mature offshore oilfields.
The offshore decommissioning market size is expected to see strong growth in the next few years. It will grow to $8.91 billion in 2028 at a compound annual growth rate (CAGR) of 8.5%. The anticipated growth in the forecast period can be attributed to the surge in government funding for well decommissioning and abandonment programs, the increasing exploration and production activities for oil and gas, and the rising demand for crude oil products. Key trends projected for the forecast period include an increasing emphasis on decommissioning contracts with industry leaders, expanding acquisition efforts to increase geographic presence, growing importance of topside removal projects, strategic partnerships and collaborations among market players, and innovations in subsea processing and transportation systems.
The offshore decommissioning market is poised for growth, driven by increasing government investment in well-plugging and abandonment activities. Well-plugging involves permanently sealing abandoned wells to prevent surface drainage contamination. Offshore decommissioning ensures the cessation of offshore oil and gas production, restoring the ocean and seafloor post-abandonment. Notably, the U.S. government plans to allocate $33 million for remediating oil and gas wells on federal property, with a focus on addressing abandoned wells as part of the bipartisan infrastructure package. This substantial government investment is a key factor propelling the growth of the offshore decommissioning market.
The growth of the offshore decommissioning market is further fueled by the rising demand for crude oil products. Increased demand for crude oil leads to expanded oil drilling activities, resulting in the establishment of more offshore oil and gas installations. As these installations approach the end of their productive life, the need for decommissioning services grows. In 2022, U.S. crude oil exports reached a record high of 3.6 million barrels per day, with Asia and Oceania accounting for 43% of these exports. This surge in crude oil demand contributes significantly to the demand for offshore decommissioning services, thereby driving market growth.
A notable trend in the offshore decommissioning market is the prevalence of strategic partnerships among major players. Companies are forming partnerships to optimize resources and enhance market sustainability. In March 2021, Worley, a U.S.-based engineering and design solutions company, partnered with Morrison Energy, an energy company specializing in offshore decommissioning services. This collaboration allows Worley to provide engineering services for Morrison's decommissioning projects, highlighting the trend of strategic partnerships as a key element in the offshore decommissioning market.
The increasingly mature nature of offshore oilfields has been a significant factor in the historic growth of the offshore decommissioning market. Mature oilfields, characterized by declining production rates or nearing economic limits, account for over 70% of global oil and gas production. In the United States, oil production reached 11.6 million barrels per day in December 2021, with a decline in the number of producing oil wells due to lower prices and reduced rig activity. The development of mature offshore assets contributes substantially to the global economy, driving the demand for decommissioning services.
In March 2022, Claxton, a UK-based leader in Acteon's drilling and decommissioning segment, acquired decommissioning personnel and assets from Oceaneering International, a U.S.-based service provider in drilling and decommissioning of offshore oilfields. This strategic acquisition enhances Claxton's capabilities and decommissioning expertise, solidifying its position as a top international provider of offshore cutting services.
Major companies operating in the offshore decommissioning market report are TechnipFMC PLC, Petrofac Limited, John Wood Group PLC, Aker Solutions ASA, Allseas Group SA,Equinor ASA, Schlumberger Ltd., Acteon Group Ltd., DNV GL, AF Gruppen ASA, Reliance Industries Limited, Cairn Oil and Gas, Essar Offshore Subsea Limited, Afcons Infrastructure Limited, Seamec Ltd., China Offshore Oil Engineering Corporation, Shanghai Salvage Company, China Oilfield Services Limited, Shanghai Zhenhua Heavy Industries Company, Boskalis Subsea Services, Augean North Sea Services, Veolia Environmental Services, ASCO Group, Gazprom, Rosneft, LUKOIL, NOVATEK, Sovcomflot, ExxonMobil Corporation, Baker Hughes Company, Halliburton Offshore Services Inc., Weatherford International PLC, Tetra Technologies Inc., Allnorth Consultants, Petrogas Group, R.J. MacIsaac Construction Ltd., Petrobras, OceanPact, Subsea 7, TechnipFMC, Ocyan, Oceaneering, Norwell Engineering, Aries Marine, Gulfstream Services, Decom Engineering, Environment Quality Services, The Sparrows Group, Southey Contracting, Sasol, Alduco Engineering Services
Europe was the largest region in the offshore decommissioning market in 2023. The regions covered in the offshore decommissioning market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the offshore decommissioning market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.
The offshore decommissioning market includes revenues earned by entities by structural tear-down, building material segregation, debris removal, and recycling, pressure washing, surface wipe-down, lead paint or asbestos abatement, storage tank removal, and other types. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Offshore Decommissioning Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on offshore decommissioning market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for offshore decommissioning? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The offshore decommissioning market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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