Increase in Demand for Oil and Gas is anticipated to Boost Market Growth

Published: May 2024

Global offshore decommissioning market is anticipated to grow at a CAGR of 6.1% during the forecast period (2024-2031). A major factor supporting the growth of the market is the increase in the number of aged oil and gasoline platforms globally. 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 growth throughout the anticipated 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 another factor driving the offshore decommissioning market is the presence of offshore (typically deep water) regions globally. 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.

Browse the full report description of “Offshore Decommissioning Market Size, Share & Trends Analysis Report By Service (Project Management, Engineering & Planning, Permitting & Regulatory Compliance, Platform Preparation, Well Plugging & Abandonment, Conductor Removal, Mobilization & Demobilization of Derrick Barges, Platform Removal, Pipeline & Power Cable Decommissioning, Materials Disposal, and Site Clearance), By Depth (Shallow Water and Deepwater), and By Structure (Topside, Substructure, and Sub Infrastructure), Forecast Period (2024-2031)” at https://www.omrglobal.com/industry-reports/offshore-decommissioning-market

Offshore decommissioning entails safely sealing matured and nonproductive wells on 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 UK 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. 

Market Coverage

The market number available for – 2023-2031

Base year- 2023

Forecast period- 2024-2031

Segment Covered- 

o By Service

o By Depth

o By Structure

Regions Covered-

o North America

o Europe

o Asia-Pacific

o Rest of the World

Competitive Landscape- AF Gruppen ASA, Aker Solutions, John Wood Group plc., and TechnipFMC Plc., among others.

Key questions addressed by the report.

  • What is the market growth rate?
  • Which segment and region dominate the market in the base year?
  • Which segment and region will project the fastest growth in the market?
  • Who is the leader in the market?
  • How are players addressing challenges to sustain growth?
  • Where is the investment opportunity?

Global Offshore Decommissioning Market Report Segment

By Service

  • Project Management, Engineering & Planning       
  • Permitting & Regulatory Compliance         
  • Platform Preparation         
  • Well Plugging & Abandonment         
  • Conductor Removal            
  • Mobilization & Demobilization of Derrick Barges          
  • Platform Removal        
  • Pipeline & Power Cable Decommissioning                
  • Materials Disposal             
  • Site Clearance

By Depth

  • Shallow Water      
  • Deepwater

By Structure

  • Topside       
  • Substructure         
  • Sub Infrastructure 

Global Offshore Decommissioning Market Report Segment by Region

North America

United States

Canada 

Europe

UK

Germany

Italy

Spain

France

Rest of Europe 

Asia-Pacific

China

India

Japan

South Korea

Rest of Asia-Pacific 

Rest of the World

Latin America 

Middle East & Africa


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