by The United Kingdom offshore decommissioning market consists of various dismantling and removal services required after the closure of offshore oil and gas platforms, pipelines and installations at the end of their production lifetime. Offshore operators face complex technical and regulatory challenges in safely decommissioning agingUnited Kingdom Offshore Decommissioning Market infrastructure while minimizing environmental impact. Companies offer specialized services like plugging and abandonment of wells, preparation and transportation of structures for recycling and disposal. The market is driven by an aging stock of offshore oil and gas assets as well as implementation of strict decommissioning guidelines by regulatory bodies.
The Global United Kingdom Offshore Decommissioning Market Size is estimated to be valued at US$ 1.30 Bn in 2024 and is expected to exhibit a CAGR of 8.5% over the forecast period 2024-2031.
Key Takeaways
Key players operating in the United Kingdom offshore decommissioning are Veolia Environnement S.A., Derrick Services (UK) Ltd, Perenco SA, Ramboll Group A/S, AF Gruppen ASA and Among Others. Veolia is one of the largest environmental services companies worldwide with expertise in oil and gas decommissioning projects.
Offshore decommissioning demand in the UK market is driven by aging offshore infrastructure installed during the 1970s oil boom nearing end of operational life. Over 300 oil and gas structures are expected to require decommissioning by 2035, creating significant business opportunities.
Stringent regulatory norms formulated by the UK government has made full removal of structures the standard removal option. Companies are expanding their capabilities to undertake complex full removal projects to capitalize on the growing global demand for decommissioning and waste recycling services.
Market Key Trends
One of the major trends in the United Kingdom offshore decommissioning market is the implementation of stricter rules around environmental protection and removal of structures. Earlier guidelines allowed partial removal or leaving installations in place, however, in recent years regulations have been tightened to mandate full removal of all infrastructure. This aims to remove potential future environmental liabilities and has opened up new possibilities for reusing and recycling decommissioned materials. Companies have invested in upgrading their health, safety and environment management systems to adhere to the evolving regulatory landscape.
Porter’s Analysis
Threat Of New Entrants: Low capital requirement for small service contracts and availability of unused offshore assets lower the threat slightly.
Bargaining Power Of Buyers: Large oil & gas companies have significant bargaining power over contractors and can negotiate lower rates.
Bargaining Power Of Suppliers: Specialized skills, equipment and offshore operations experience increase suppliers’ bargaining power.
Threat Of New Substitutes: No close substitutes exist for decommissioning offshore oil & gas infrastructure at the end of field life.
Competitive rivalry: Intense competition exists among existing contractors to secure decommissioning contracts from oil majors.
Geographical Regions
The North Sea accounts for the lion’s share of the UK offshore decommissioning market value due to the large number of aging oil & gas fields located in the region. The North Sea has been producing hydrocarbon resources commercially for over 50 years now.
The Irish Sea is expected to witness the fastest growth in the UK offshore decommissioning market during the forecast period. Various small fields located in the Irish Sea are reaching maturity and expected to be decommissioned in the coming years.
What Are The Key Data Covered In This United Kingdom Offshore Decommissioning Market Report?
:- Market CAGR throughout the predicted period
:- Comprehensive information on the aspects that will drive the United Kingdom Offshore Decommissioning’s growth between 2024 and 2031.
:- Accurate calculation of the size of the United Kingdom Offshore Decommissioning and its contribution to the market, with emphasis on the parent market
:- Realistic forecasts of future trends and changes in consumer behaviour
:- United Kingdom Offshore Decommissioning Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa
:- A complete examination of the market’s competitive landscape, as well as extensive information on vendors
:- Detailed examination of the factors that will impede the expansion of United Kingdom Offshore Decommissioning vendors
FAQ’s
Q.1 What are the main factors influencing the United Kingdom Offshore Decommissioning?
Q.2 Which companies are the major sources in this industry?
Q.3 What are the market’s opportunities, risks, and general structure?
Q.4 Which of the top United Kingdom Offshore Decommissioning companies compare in terms of sales, revenue, and prices?
Q.5 Which businesses serve as the United Kingdom Offshore Decommissioning’s distributors, traders, and dealers?
Q.6 How are market types and applications and deals, revenue, and value explored?
Q.7 What does a business area’s assessment of agreements, income, and value implicate?
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
