The Global Offshore Decommissioning Market Growth Accelerated By Increasing Investments In Offshore Decommissioning Projects
Offshore Decommissioning Market
Offshore decommissioning refers to removing infrastructure such as oil rigs, platforms and pipelines at the end of their operational lives. It is a crucial phase of offshore oil and gas field life cycles which involves planning well plugging and abandonment, structure removal, related engineering studies and marine operations. The growing demand for energy globally has led to increased exploration and production activities in offshore reserves over the past few decades, driving the need for offshore decommissioning.
The global Offshore Decommissioning Market is estimated to be valued at Us$ 7.07 Bn in 2024 and is expected to exhibit a CAGR Of 5.8% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Increasing investments in offshore decommissioning projects is one of the key trends driving the growth of offshore decommissioning market. Oil & gas companies are allocating more capital towards accelerating decommissioning programs to reduce future liabilities and comply with evolving global regulations. For instance, according to International Association of Oil & Gas Producers (IOGP), global spending on decommissioning projects is estimated to grow at a CAGR of 6.3% between 2023-2030. Growing capital investments are enabling oil & gas operators to remove more platforms and pipelines from offshore oilfields which is boosting the demand for offshore decommissioning services.
Segment Analysis
The global offshore decommissioning market is dominated by the top segment of platform decommissioning which accounts for around 45% of the total market share. Platform decommissioning involves dismantling and removal of offshore platforms and structures. It is the most complex part of decommissioning process due to involvement of heavy lifting operations. Growing number of aging platforms in seas of countries like US and UK is driving the growth of this segment.
Key Takeaways
The Global Offshore Decommissioning Market Demand is expected to witness high growth at a CAGR of 5.8% during the forecast period of 2023 to 2030. The market size is projected to reach US$ 7.07 Billion by 2024.
Regional analysis:
Europe region currently dominates the offshore decommissioning market with around 50% share. Countries like UK, Norway and Netherlands have large number of aging offshore infrastructure nearing end of production life. Strong regulations and focus on environment protection is further augmenting spending on decommissioning activities in the region. Asia Pacific region is expected to witness fastest growth during forecast period supported by substantial oil and gas reserves and upcoming decommissioning of infrastructure in southeast Asian countries.
Key players:
Key players operating in the offshore decommissioning market are James Fisher Decom, AF Gruppen, Royal Dutch Shell, Halliburton, Petrofac, and John Wood Group. Royal Dutch Shell is one of the largest player with global presence and experience of decommissioning over 150 platforms. It provides integrated decommissioning services including plugging and abandoning of wells.
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