The Global Offshore Decommissioning Market is projected to reach USD 11.51 billion by 2028, at a CAGR of 5.7% during the forecast period. As Oil & Gas fields reach the end of their lifespan, they must be decommissioned. Decommissioning is a complex task, as it requires highly skilled workers in order to ensure that the wells and platforms are safely and efficiently dismantled or decommissioned. Decommissioning refers to the process of returning the ocean and seafloor to its pre-lease condition by ending offshore oil & gas operations at an offshore platform.
The main driver for the decommissioning market is the mandatory legal procedures for offshore oil and gas operations, which are laid down by the regulatory bodies of respective nations. The need for technical decommissioning is expected to increase in the coming days, as several offshore rigs are expected to reach the end of their production cycle over the next ten years.
Further, the increasing number of recent oil platforms like the ones in the North Sea and the Gulf of Mexico, which will need decommissioning once they saturate, is expected to maintain the market’s growth in the future.
However, the recent fall in oil prices is anticipated to be a major limitation for the exploration and development activities of oil and gas and decommissioning operations. The falling oil prices have caused a constant drop in cash inflow and have increased the debt levels. This, in turn, can have a major impact on the global market and become a threat to the future of the oil and gas industry.
Offshore Decommissioning Market, By Structure:
Topsides have the largest share, by weight, of an offshore platform. Specialized heavy lift vessels and removal equipment are required for the decommissioning of topsides and related equipment. Thus, the topsides segment is projected to be the largest segment of the offshore decommissioning, by structure.
Offshore Decommissioning Market, By Depth:
Based on depth, the market is segmented into shallow water and deep water. The shallow water segment is expected to dominate the market for offshore decommissioning due to a large number of shallow-water oil fields already present and also the new ones being developed. This is due to the fact that they require lower costs to set up.
Offshore Decommissioning Market, By Region:
Europe holds a dominant position in the global offshore decommissioning market. This regional market has been driven by an aging infrastructure and maturing oil and gas fields, especially in the North Sea and the U.K. Most of the decommissioning activities are taking place in more mature fields located in the United Kingdom Continental Shelf.
In North America, the US government has established a robust regulatory framework, including technical standards and financial security requirements, to support the decommissioning efforts by operators. This, in turn, is expected to support the decommissioning activities undertaken by operators.
According to the Bureau of Safety and Environmental Enforcement (BSEE), the Gulf of Mexico (GOM) has the highest number of decommissioned platforms across the globe. There are 17,841,739 acres of leased land comprising 3,344 total leases in the Gulf of Mexico alone. The Gulf of Mexico has been the largest region in the world for the number of wells decommissioned.
Key Developments in the Offshore Decommissioning Market:
Some Key Findings of the Global Offshore Decommissioning Market Report Include:
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