Global Offshore Decommissioning Market, By Structure (Topside, Sub-sea Infrastructure, Substructure)

Published Date: May 2019 | Report Code : EP1933586

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Global Offshore Decommissioning Market, By Structure (Topside, Sub-sea Infrastructure, Substructure), By Services (Project Management, Permitting Compliance, Regulatory Compliance, Planning & Engineering, Well Plugging & Abandonment, Conductor Removal, Others), By Depth (Shallow Water, Deep Water), By Region (North America, Western Europe, Eastern Europe, Asia Pacific, Middle East, Rest of the World) – Market Size & Forecasting(2016-2028)

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Domain : Energy

Report Code : EP1933586

Status : Published May 2019

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. This complex task involves a number of highly skilled workers to ensure that the wells and platforms are safely and efficiently dismantled or decommissioned. Decommissioning is the process of ending offshore oil & gas operations at an offshore platform and returning the ocean and seafloor to its pre-lease condition.

Off Shore Decommissioning Market

Decommissioning involves the following activities:

  • Cleaning and removal of all production and pipeline risers supported by the platform.
  • Removal of the platform from its foundation by severing all bottom-founded components at least 15 feet below the midline.
  • Disposing the platform in a scrap yard or fabrication yard, or replacing the platform at an artificial reef site.
  • Performing site clearance verification at the platform location to ensure that no debris or potential obstruction to other users of the ocean floor remains.

Off shore Decommissioning Market

The major driver for the decommissioning market is strengthening & mandatory legal guidelines for offshore oil and gas operations set up by the regulatory bodies of respective nations. With a huge number of offshore rigs expected to reach the end of their production cycle over the next ten years, the global need for technical decommissioning is expected to keep growing. Also, 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 grow the keep the market growth in the future.

Based on depth, the market is segmented into shallow water and deep water. The shallow water segment is expected to dominate to market for offshore decommissioning due to a large number of shallow-water oil fields already present and also new ones being developed because of their lower costs to set up.

Most of the decommissioning activity is in more mature fields located in the United Kingdom Continental Shelf and the Gulf of Mexico. 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. Though the average number of structure decommissioned fell to 113 in 2015, the total number of the structure removed in the GoM Outer Continental Shelf (OCS) reached 254 in 2016. More than 2,000 structures and around 9,000 wells are expected to be removed by operators from GOM in the coming years. The US government has established a robust regulatory framework, including technical standards and financial security requirements to support the decommissioning efforts put forward by operators, which in turn is expected to support the decommissioning activities undertaken by operators. Europe holds a dominant position in the global offshore decommissioning market. The aging infrastructure and maturing oil and gas fields, especially in the North Sea and the U.K have driven this market in Europe.

The recent downturn in prices of oil is expected to be key restraint to not only the exploration and development activities of oil and gas but also decommissioning operations. The decrease in oil prices has caused a continued decline in cash inflow and rise or hike in debt levels could challenge the future of the oil and gas industry.

Key Factors Impacting Market Growth:

  • Mandatory legal guidelines for offshore oil and gas operations set up by the regulatory bodies of respective nations
  • A large number of offshore rigs expected to reach the end of their production cycle
  • Discovery and development of new oil reserves in offshore areas around the world

Key Developments:

  • In January 2018, ExxonMobil Upstream Research Company (US), subsidiary of ExxonMobil, entered into a three-year joint development agreement with MagnaBond, LLC, to develop new technologies designed to address well decommissioning activities which focus on developing through-tubing cement evaluation and casing imaging tool that could enhance cost-effective evaluation of well cementing, casing, and tubing. The agreement was an initiative to address challenges associated with well-decommissioning activities such as plugging and abandonment
  • In January 2018, EnQuest (UK) signed an agreement with BP for the management of decommissioning activities for Thistle and Deveron production facilities in the UK northern North Sea
  • In February 2018, Fairfield Energy awarded Bibby Offshore (UK) the contract for the subsea infrastructure decommissioning (SID) of the Greater Dunlin Area

What This Study Provides:

  • Global market and submarket forecast covering the period of 2016 to 2028, with accompanying analysis
  • Regional market and submarket forecast covering the period of 2016 to 2028, with accompanying analysis
  • National market and submarket forecast covering the period of 2016 to 2028, with accompanying analysis
  • Extensive details and analysis of contracts, projects, and program
  • Market dynamics scenario, along with growth opportunities of the market in the years to come
  • Analysis of game-changing technological trends and how these will shape the industry
  • Explanation or political, regulatory and technical factors to consider
  • Barriers to entry analysis for markets around the world
  • Profiles of leading companies operating within the sector with market share analysis
  • SWOT analysis of the market, together with the opportunities available and the key threats faced
  • Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the past five years
  • Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
  • Market conclusions & recommendations

Market Segmentation:

By Structure:

  • Topside
  • Sub-Sea Infrastructure
  • Substructure

By Services:

  • Project Management
  • Permitting Compliance
  • Regulatory Compliance
  • Planning & Engineering
  • Well Plugging & Abandonment
  • Conductor Removal
  • Others

By Depth:

  • Shallow Water
  • Deep Water

By Region:

  • North America
    • By Country (US, Canada, Mexico)
    • By Structure
    • By Services
    • By Depth
  • Western Europe
    • By Country (Germany, UK, France, Spain, Rest of Western Europe)
    • By Structure
    • By Services
    • By Depth
  • Eastern Europe
    • By Country (Russia, Turkey, Rest of Eastern Europe)
    • By Structure
    • By Services
    • By Depth
  • Asia Pacific
    • By Country (China, Japan, India, Rest of Asia Pacific)
    • By Structure
    • By Services
    • By Depth
  • Middle East
    • By Country (UAE, Qatar, Iran, Saudi Arabia, Rest of Middle East)
    • By Structure
    • By Services
    • By Depth
  • Rest of the World
    • By Region (Latin America, Brazil, Rest of the World)
    • By Structure
    • By Services
    • By Depth

Companies Covered: Aker Solutions, Epic Companies, Maersk Decom, Bibby Offshore, Proserv Group Inc., Able UK Ltd., Allseas Group SA, Amec Foster Wheeler PLC, John Wood Group PLC, Deepocean Group Holding BV, and Heerema Marine Contractors… 

Years Considered In The Study

 

Historic Year

2016, 2017

Base Year

2018

Forecast Period

2019-2028 

CAGR % (2019-2028)

5.7

 

Key Questions Answered By This Report:

  • How is the offshore decommissioning market evolving?
  • What is driving and restraining offshore decommissioning dynamics?
  • How will each offshore decommissioning submarket segment grow over the forecast period and how much Sales will these submarkets account for in 2028?
  • How will market shares of each offshore decommissioning submarket develop from 2019-2028?
  • Which high-speed steel submarket will be the main driver of the overall market from 2019-2028?
  • How will political and regulatory factors influence regional offshore decommissioning markets and submarkets?
  • Will leading national offshore decommissioning broadly follow macroeconomic dynamics, or will individual country sectors outperform the rest of the economy?
  • How will market shares of the national markets change by 2028 and which nation will lead the market in 2028?
  • Who are the leading players and what are their prospects over the forecast period?
  • How will the sector evolve as alliances form during the period between 2019 and 2028?

Reasons To Buy This Report:

  • Market size estimation of the global offshore decommissioning market on a regional and global basis
  • The unique research design for market size estimation and forecast
  • Profiling of major companies operating in the market with key developments
  • Broad scope to cover all the possible segments helping every stakeholder in the market

Customization:

We provide customization of the study to meet specific requirements:

  • By Segment
  • By Sub-segment
  • By Region/Country

For more information, contact: [email protected]

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