Global Offshore Decommissioning Market Size Study & Forecast, By Water Depth (Shallow Water, Deep Water), by Structure (Topside, Subsea Infrastructure, Substructure), By Service (Project Management, Engineering, and Planning, Platform Preparation, Well Pl

Global Offshore Decommissioning Market Size Study & Forecast, By Water Depth (Shallow Water, Deep Water), by Structure (Topside, Subsea Infrastructure, Substructure), By Service (Project Management, Engineering, and Planning, Platform Preparation, Well Plugging and Abandonment, Platform Removal, Material Disposal, Site Clearance, Others), and Regional Analysis, 2023-2030

Global Offshore Decommissioning Market is valued at approximately USD XX billion in 2022 and is anticipated to grow with a healthy growth rate of more than XX% over the forecast period 2023-2030. Offshore decommissioning refers to the process of safely and efficiently removing offshore oil and gas installations, pipelines, and related infrastructure that are no longer in use or have reached the end of their productive life. This includes activities such as well plugging and abandonment, dismantling and removal of platforms, pipelines, and associated equipment, and environmental cleanup to restore the offshore area to its natural state. Offshore decommissioning is a complex and highly regulated process that aims to minimize environmental impact while ensuring worker safety and compliance with regulatory requirements. The offshore decommissioning market offers numerous advantages. It enhances safety and lowers environmental risks linked with aging offshore installations by eliminating potential leaks, spills, and accidents. The offshore decommissioning market is being driven by the rising number of aging oil and gas platforms globally. Decreasing productivity from these wells is a major factor prompting decommissioning activities in oil fields. The implementation of legal guidelines by regulatory bodies in various countries is also contributing positively to market growth across the globe.

The volatile prices of oil are resulting in the high demand for offshore decommissioning activities, which is poised to bolster the market demand during the estimated period of 2023-2030. Fluctuating oil prices impact the profitability of offshore oil and gas operations, making it economically challenging for companies to sustain production from aging or marginal fields during periods of low prices. This volatility creates uncertainty in revenue streams and operational costs, prompting companies to reassess the viability of continuing production from such fields. As per the article published by The World Bank in January 2024, the average oil price stood at USD 78 per barrel in December, marking a decline from USD 94 per barrel in September and reversing all the gains made in the third quarter of 2023. Also, it is projected that the oil prices are likely to decrease to USD 81 per barrel in 2024 and continue to moderate further in 2025, down from USD 83 per barrel in 2023.

Operators discover that decommissioning offshore assets is more cost-effective than continuing operations when oil prices are low or fluctuate significantly. Through decommissioning, businesses can reduce continuing operating costs, lower financial risk, and reallocate resources to more lucrative projects or assets. Furthermore, organizations maximize asset use, consolidate their portfolios, and adapt to changing market conditions by retiring aging infrastructure. Thus, these aforementioned factors are propelling the growth of the Offshore Decommissioning Market during the estimated period. Moreover, the aging offshore infrastructures, as well as increasing deepwater discovery and development in offshore areas present various lucrative opportunities over the forecast years. However, the high cost associated with offshore decommissioning projects and the environmental concerns associated with offshore decommissioning are challenging the market growth throughout the forecast period of 2023-2030.

The key regions considered for the Global Offshore Decommissioning Market study include Asia Pacific, North America, Europe, Latin America, and Middle East & Africa. Europe dominated the market in 2022 owing to the stricter environmental regulations regarding decommissioning practices, fluctuations in oil prices and market conditions, as well as increasing focus on ensuring the safety of personnel and mitigating operational risks. Whereas North America is expected to grow at the highest CAGR over the forecast years. The high presence of mature oil and gas fields, growing focus on environmental protection, and advancements in technology are significantly propelling the market demand across the region.

Major market players included in this report are:
Aker Solutions ASA
John Wood Group PLC
Allseas Group SA
Schlumberger Limited
Petrofac Limited
DeepOcean Group Holding AS
AF Gruppen ASA
TechnipFMC plc
Chevron Corporation
MacGregor Machining & Cutting Services

Recent Developments in the Market:
 In February 2021, Saipem secured a contract from Qatargas for the offshore development of the North Field Production sustainability project. The scope encompasses engineering, procurement, construction, and installation of various offshore facilities.
 In January 2021, Boskalis acquired Rever Offshores' subsea services business, bolstering its position in the Northwest Europe, Africa, and Middle East subsea services market. This acquisition equips Boskalis to serve both the traditional oil and gas sector and the burgeoning offshore wind industry.

Global Offshore Decommissioning Market Report Scope:
 Historical Data – 2020 - 2021
 Base Year for Estimation – 2022
 Forecast period - 2023-2030
 Report Coverage - Revenue forecast, Company Ranking, Competitive Landscape, Growth factors, and Trends
 Segments Covered - Water Depth, Structure, Service, Region
 Regional Scope - North America; Europe; Asia Pacific; Latin America; Middle East & Africa

The objective of the study is to define the market sizes of different segments & countries in recent years and to forecast the values for the coming years. The report is designed to incorporate both qualitative and quantitative aspects of the industry within countries involved in the study.

The report also caters to detailed information about the crucial aspects such as driving factors & challenges that will define the future growth of the market. Additionally, it also incorporates potential opportunities in micro markets for stakeholders to invest along with a detailed analysis of the competitive landscape and product offerings of key players.

The detailed segments and sub-segment of the market are explained below:

By Water Depth:
Shallow Water
Deep Water

By Structure:
Topside
Subsea Infrastructure
Substructure

By Service:
Project Management, Engineering, and Planning
Platform Preparation
Well Plugging and Abandonment
Platform Removal
Material Disposal
Site Clearance
Others

By Region:

North America
U.S.
Canada

Europe
UK
Germany
France
Spain
Italy
ROE

Asia Pacific
China
India
Japan
Australia
South Korea
RoAPAC

Latin America
Brazil
Mexico

Middle East & Africa
Saudi Arabia
South Africa
Rest of Middle East & Africa

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