The global Offshore Decommissioning market size was estimated at USD 6.04 billion in 2023 and is projected to reach USD 9.90 billion in 2030 at a CAGR of 7.30% during the forecast period 2023-2030.
Offshore decommissioning is the process of removing and dismantling offshore oil and gas platforms and other structures at the end of their operational life. It is a complex and expensive process, but it is essential to ensure the environmental safety of the surrounding area.
Decommissioning project involves developing a plan for the decommissioning project which includes identification of hazards and risks, ad the development of mitigation strategies. This is followed by obtaining the necessary permits from government agencies, and ensuring that the decommissioning project complies with all applicable regulations. After that, the platform is prepared by cleaning and purging the platform off hazardous materials, and removing any equipment that is not part of the decommissioning project. After platform is prepared, plugging and abandoning of the wells in the platform takes place to prevent the release of oil and gas into the environment. Once its done, platform is removed from the seabed and transported to the disposal site. After the platform is removed, the pipelines and power cables associated with the platform are also removed followed by removal of materials that were removed from the platform, in a safe and environmentally responsible manner. Lastly, the site is cleared on any remaining debris and restored to its natural condition.
The global offshore decommissioning market is segmented by service, structure, removal and region. By service, the market is segmented into we plugging and abandonment, platform removal and conductor removal. By structure the market is bifurcated into topsides and substructure. By removal the market is segment ed into leave in place, partial and complete and by region the market is segmented into North America, Europe, Asia-Pacific, Middle East and Africa and South America.
The market is being driven by the increasing number of abandoned wells and presence of large mature offshore oilfields worldwide. Moreover, the decline in the manufacture of crude oil and natural gas from manufacturing well is also driving the growth of the market. However, the high cost associated with decommissioning of offshore projects is a factor limiting the growth of the market.
The COVID-19 Pandemic had an adverse impact on the global offshore decommissioning market. This was due to reduced demand for oil as gas, increased costs for offshore decommissioning projects due to travel restrictions, quarantine requirements and supply chain disruptions. Moreover, the pandemic caused delays in offshore decommissioning projects, due to factors such as the need to reschedule project activities and the inability to obtain necessary permits. Lastly, oil and gas companies had to shut down their manufacturing facilities as many countries practiced partial or full lockdown which negatively impacted the global offshore decommissioning market.
The COVID-19 pandemic negatively impacted the global offshore decommissioning market. This can be attributed to the partial and complete lockdown placed by countries worldwide which restricting the activity of manufacturing facilities. Moreover, as travel restrictions were in place during the pandemic, demand for fuel reduced drastically which affected the global offshore decommissioning market. The market is being driven majorly by the well plugging and abandonment segment which accounts for almost 50% of the total decommissioning cost of a project.
North America to Dominate the Market