May 18, 2024

Increasing Global Commitment To Reduce Carbon Footprint To Fuel Growth Of The Offshore Decommissioning Market

The offshore decommissioning market involves removing obsolete offshore oil and gas infrastructure at the end of their operational lifetime. This includes platforms, subsea installations, pipelines, and other structures. Effective decommissioning is important to remove environmental and safety hazards, recover historical liabilities, and enable re-use of the space for alternative offshore activities. Offshore decommissioning requires specialized vessels and equipment to undertake complex engineering projects such as well plugging, structure removal and pipeline severing activities.

The global Offshore Decommissioning Market is estimated to be valued at US$ 7.07 Bn in 2023 and is expected to exhibit a CAGR of 16% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

Many aging oilfields are reaching the end of their productive lives, triggering the need for decommissioning of old infrastructure. Stricter government regulations around environmental remediation and safety are also boosting spending on decommissioning activities. High costs associated with projects are driving innovation in new decommissioning techniques involving modularization, standardization and digitalization. This is helping reduce project timelines and costs. Growth potential exists in emerging markets embarking upon offshore oil & gas production for the first time.

Porter’s Analysis
Threat of new entrants: The offshore decommissioning market requires high initial investments and capital which act as a barrier for new players entering the market.
Bargaining power of buyers: The presence of numerous players operating in the offshore decommissioning market gives buyers high bargaining power to negotiate on price.
Bargaining power of suppliers: Specialized equipment and resources required limits the number of suppliers in the market thereby giving them higher bargaining power.
Threat of new substitutes: No close substitutes are available for offshore decommissioning services.
Competitive rivalry: Intense competition exists among the existing players leading to pricing pressures.

Key Takeaways

The Global Offshore Decommissioning Market Size is expected to witness high growth, exhibiting a CAGR of 16% over the forecast period, due to increasing demand from aging oil and gas assets nearing end of production life.

Regional analysis: The Asia Pacific region is expected to dominate the offshore decommissioning market, with countries like China and India witnessing significant decommissioning activities. Large number of inactive wells and platforms in the Gulf of Mexico will drive the growth of North American offshore decommissioning market.

Key players: Key players operating in the offshore decommissioning market are Acteon Group Limited, Topicus Finan BV, AF Gruppen ASA, Tetra Technologies Inc., Allseas Group S.A., DeepOcean Group Holding B.V., John Wood Group Plc, and Exxon Mobil Corporation. Acteon Group and AF Gruppen are well recognized for their effective plug and abandonment andWell completion services.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it