The Worldwide Offshore Decommissioning Industry is Expected to Reach $8 Billion by 2027 at a CAGR of 7.4% from 2021 – PRNewswire

DUBLIN, July 22, 2021 /PRNewswire/ -- The "Global Offshore Decommissioning Market by Service (Well Plugging & Abandonment, Platform Removal, Conductor Removal) Depth (Shallow, Deepwater) Structure (Topsides, Substructure) Removal (Leave in Place, Partial, Complete), and Region - Forecast to 2027" report has been added to ResearchAndMarkets.com's offering.

The global offshore decommissioning market is projected to reach USD 8 billion by 2027 from an estimated USD 5.2 billion in 2021, at a CAGR of 7.4% during the forecast period.

The factors driving the market include maturing oil & gas fields, low crude oil prices, and aging offshore infrastructure. Offshore decommissioning refers to ending oil & gas operations on offshore platforms and restoring marine life and seafloor to its pre-production conditions.

Well plugging & abandonment segment dominates the global market

The well plugging & abandonment segment is expected to be the largest market, by service type during the forecast period. This growth is evident owing to key activity to be performed regardless of decommissioning type; it ensures that oil wells do not have any type of leakage after the cessation of production. According to norms and regulations, wells that are matured and no longer productive need to be properly plugged & abandoned. It is essential to plug the wells before platform removal to prevent any kind of leakages, which can pollute the seafloor and damage the surrounding marine environment.

Complete removal dominate the global offshore decommissioning market

The complete removal segment of offshore decommissioning is estimated to be the largest market during the forecast period. Complete removal involves restoring the oilfield site to its natural or pre-commissioning state. It is an expensive decommissioning option for both operating companies and taxpayers. In the North Sea, a complete removal is currently required by the Convention for the Protection of the Marine Environment of the North-East Atlantic, or the 'OSPAR' agreement.

Europe to lead the global offshore decommissioning market in terms of growth rate

Europe is the largest market, by value, for offshore decommissioning, followed by North America. Owing to mature oil and gas fields, particularly in the UK and the North Sea. The impending cessation of production in major oil and gas fields would ensure that the European market would grow at the highest pace. Europe is estimated to witness the highest offshore decommissioning spending, with its well-developed regulatory framework compared to other regions.

Key Topics Covered:

1 Introduction

2 Research Methodology

3 Executive Summary

4 Premium Insights4.1 Attractive Opportunities in Offshore Decommissioning Market4.2 Offshore Decommissioning Market, by Region4.3 Offshore Decommissioning Market, by Service4.4 Offshore Decommissioning Market, by Structure4.5 Offshore Decommissioning Market, by Depth4.6 Offshore Decommissioning Market, by Removal4.7 Offshore Decommissioning Market in Europe, by Structure & Country

5 Market Overview5.1 Introduction5.2 COVID-19 Health Assessment5.3 Road to Recovery5.4 COVID-19 Economic Assessment5.5 Market Dynamics5.5.1 Drivers5.5.1.1 Growing Number of Abandoned Wells and Presence of Large Mature Offshore Oilfields Worldwide5.5.1.2 Fluctuations in Oil Prices Boost Offshore Decommissioning Activities5.5.2 Restraints5.5.2.1 High Cost Associated with Offshore Decommissioning Processes5.5.2.2 Lack of Skilled Workers in Developing Countries5.5.2.3 Environmental Concerns Associated with Offshore Decommissioning5.5.3 Opportunities5.5.3.1 Aging Offshore Infrastructures, Especially in North Sea and Gulf of Mexico5.5.3.2 Deepwater Discovery and Development in Offshore Areas5.5.4 Challenges5.5.4.1 Growing Adoption of Technologies to Increase Production from Mature Fields5.5.4.2 Impact of COVID-19 on Offshore Decommissioning Spending5.6 Trends/Disruptions Impacting Customers' Businesses5.6.1 Revenue Shift and New Revenue Pockets in Offshore Decommissioning Market5.7 Supply Chain Overview5.7.1 Key Influencers5.7.1.1 EPC Companies5.7.1.2 Service Providers5.7.1.3 Operators5.8 Market Map5.9 Technology Analysis5.10 Patent Analysis5.11 Offshore Decommissioning Market: Regulations5.12 Porter's Five Forces Analysis5.13 Case Study Analysis

6 Offshore Decommissioning Market, by Service Type6.1 Introduction6.2 Project Management, Engineering, and Planning6.2.1 Project Management, Engineering, and Planning Phase of Decommissioning Can Start as Early as 2-3 Years Prior to Cessation of Production6.3 Permitting & Regulatory Compliance6.3.1 Middle East & Africa is Among Fastest Markets in Following Regulatory Compliance6.4 Platform Preparation6.4.1 Platform Preparation Helps in Reducing Offshore Decommissioning Costs and Time6.5 Well Plugging & Abandonment6.5.1 Increasing Investments in Well Plugging & Abandonment are Driving Market6.6 Conductor Removal6.6.1 Growing Emphasis on Safety is Expected to Drive Market for Conductor Removal Segment During Forecast Period6.7 Mobilization & Demobilization of Derrick Barges6.7.1 Rising Need for Economical and Safe Transportation of Structures to Onshore Locations is Expected to Drive Market During Forecast Period 916.8 Platform Removal6.8.1 North Sea and Gulf of Mexico are Home to Maximum Number of Platforms, Which are Ideal and Not Producing Any Type of Hydrocarbons and Eligible for Decommissioning6.9 Pipeline & Power Cable Decommissioning6.9.1 Ageing Offshore Infrastructures are Estimated to Drive Market for this Segment During Forecast Period6.10 Material Disposal6.10.1 Rising Need for Safe Disposal and Recycling of Structure is Expected to Propel Market Growth During Forecast Period6.11 Site Clearance6.11.1 Availability of Regulatory Framework Guides Operating Companies to Conduct Their Site Clearance in Environmentally Safe Manner

7 Offshore Decommissioning Market, by Structure7.1 Introduction7.2 Topsides7.2.1 Growing Number of Projects & Investments for Topside Removal is Expected to Drive Market During Forecast Period7.3 Substructure7.3.1 Increasing Substructure Decommissioning Activities in North Sea are Driving Market During Forecast Period7.4 Subsea Infrastructure7.4.1 Aging Subsea Equipment and Infrastructure are Expected to Boost Market Growth

8 Offshore Decommissioning Market, by Depth8.1 Introduction8.2 Shallow Water8.2.1 Shallow Water Projects are 30-40 Years Old and Hence Need to be Decommissioned8.3 Deepwater8.3.1 Increasing Need to Decommission Abandoned Wells in Deepwater Areas is Driving Market

9 Offshore Decommissioning Market, by Removal9.1 Introduction9.2 Complete Removal9.2.1 Safety Concerns Regarding Marine Life are Expected to Drive Market for Complete Removal Segment During Forecast Period9.3 Partial Removal9.3.1 Government Policies in US Gulf of Mexico are Driving Market for this Segment9.4 Leave in Place9.4.1 Leave in Place Removal Requires No Site Clearance and Provides Migratory Animal Habitat, Which is Estimated to Boost Market Growth for this Segment

10 Offshore Decommissioning Market, by Region

11 Competitive Landscape

12 Company Profiles12.1 Key Companies12.1.1 Halliburton12.1.2 Petrofac12.1.3 Oceaneering International12.1.4 Royal Boskalis Westminster N.V.12.1.5 Aker Solutions12.1.6 Schlumberger12.1.7 Baker Hughes Company12.1.8 TechnipFMC12.1.9 Subsea 712.1.10 Weatherford12.1.11 Saipem12.1.12 John Wood Group plc12.1.13 AF Gruppen12.1.14 Heerema Marine Contractors12.1.15 Allseas Group12.2 Other Companies12.2.1 Deepocean Group12.2.2 Acteon Group12.2.3 Maersk Decom12.2.4 Able UK12.2.5 Mactech Offshore

13 Appendix

For more information about this report visit https://www.researchandmarkets.com/r/fhdhid

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The Worldwide Offshore Decommissioning Industry is Expected to Reach $8 Billion by 2027 at a CAGR of 7.4% from 2021 - PRNewswire