Global Offshore Decommissioning market is estimated to be valued at US$ 6.3 Billion in 2021, according to the Global Offshore Decommissioning Market report, by Decommissioning Service (Removal, Disposal, Remediation and Environmental Studies, Modelling and Sampling, Waste Mapping and Handling, Impact Assessment Program and Decommissioning Plan, HAZID (Hazard Identification Study) and Safety Screening, Removal of Equipment with NORM, Stress Analysis, Lifting and Rigging Procedures, Transportation and Sea Fastening), by Process (Project Management Planning and Engineering, Permitting Compliance Regulatory Compliance, Platform Preparation, Well Plugging and abandonment, Conductor Removal, Mobilization & Demobilization of Derrick Barges, Platform Removal, Pipeline and Cable Decommissioning, Material Disposal Site clearance), by Water Depth (Shallow, Deep Water, Ultra Deep Water), and by Region (North America, Latin America, Asia Pacific, Europe, and Middle East & Africa), published by Coherent Market Insights.
Global Offshore Decommissioning market was valued at US$ 6.3 Billion in 2021. Offshore Decommissioning market is expected to register a CAGR of 5.9% over the forecast period (2022–2030).
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Key Trends and Analysis of the Global Offshore Decommissioning Market:
Factors such as decline in crude oil prices coupled with growing number of maturing oil & gas fields in predicted to drive growth for global offshore decommissioning market over the forecast period. Declining crude oil prices has resulted in a number of companies shutting down or ceasing production, due to high operational costs. Decreasing crude prices has a direct effect on production costs, which in turn results in a reduction in cash flow, rendering numerous oil and gas companies bankrupt. The continued decline in cash flow, coupled with increasing debt, have a negative impact on oil and gas E&P (exploration & production) activities.
According to regulations imposed by the Bureau of Safety and Environmental Enforcement (BSEE) to lessees and operators in regions such as Gulf of Mexico and the North Sea, structures and supporting infrastructures that have been idle for five or more years must be decommissioned within 5 years from the date of last usage. Hence, players filing for bankruptcy need to decommission their idle platforms, due to regulations imposed by the government bodies. However, ecosystem risk involved and high cost of decommissioning is expected to hinder the market growth in the near future. Key environmental issues related to offshore decommissioning include potential risks to the marine ecosystem, due to the hazardous substances. This in turn is expected to adversely impact the growth of the decommissioning market in the upcoming years.
Key Takeaways of the Global Offshore Decommissioning Market:
- Among water depth segment, shallow water held the dominant position in the global offshore decommissioning market in 2021, owing to growing ageing structures in shallow Gulf of Mexico and North Sea.
- In 2018, Europe accounted for the largest revenue share of around 0% in the global offshore decommissioning market. Furthermore, North America is predicted to grow at the fastest rate during the forecast period, attributing to the maturing oil and gas fields in the Gulf of Mexico.
- North Key players operating in the market undergo various mergers & acquisitions, in order to strengthen the company’s position in the global market. For instance, in January 2021, Boskalis acquired all the shares of the subsea services business of Rever Offshores. Through this acquisition, Boskalis strengthens its current position in the subsea services market in Northwest Europe, Africa, and the Middle East.
- New product launches, merger & acquisitions, strategic partnership expansion, and research & development activities are key strategies adopted by players in the global offshore decommissioning market