The global offshore decommissioning market size was US$ 5.25 billion in 2021. The global offshore decommissioning market size is forecast to reach US$ 10.15 billion by 2030, growing at a compound annual growth rate (CAGR) of 7.6% during the forecast period from 2022 to 2030.
Decommissioning is the process of ceasing offshore oil and gas production at an offshore platform and returning the ocean and seafloor to their pre-lease state. The decommissioning method for offshore oil & gas systems is essential for environmental safety issues, as it has a possible impact on the marine environment as well as the disposal of hazardous materials. Due to growing environmental concerns and devastating side effects of abandoned oil wells, there is a need for efficient control systems, including offshore decommissioning, which includes carefully plugging oil wells and safely disposing of the equipment used in offshore oil fields. Several steps in offshore decommissioning, such as project management, engineering, planning, well plugging and abandonment, conductor removal, mobilization of derrick barges, platform removal, pipeline and power cable decommissioning, and material disposal & site clearance, undergo technological modifications due to recent improvements.
Factors Influencing Market Growth
Impact Analysis of COVID-19
Globally, the COVID-19 pandemic has negatively affected the oil & gas industry. As countries practiced partial or full lockdown measures to deal with the pandemic, oil and gas companies around the globe had to shut down their production and services. The offshore decommissioning companies with international footprints have also had to deal with travel restrictions and quarantine restrictions, which have required crewmembers to overstay their contracts. Thus, the COVID-19 pandemic had negatively impacted the global market growth.
Regional Insights
Europe generated the most revenue. Due to government initiatives and investment, the European region's market is forecast to grow significantly in the coming years. Europe has been one of the first regions to use offshore energy infrastructure, mostly decommissioned in recent years.
North America is forecast to experience a high CAGR in the market during the forecast period. Also, North America will play an important role in growing offshore discharging market demand. The region produced the most oil wells each year in the United States and the Gulf of Mexico, where they have been establishing the "Ocean Program" to make efforts practical.
Leading Competitors
The leading prominent companies profiled in the global offshore decommissioning market are:
Scope of the Report
The global offshore decommissioning market segmentation focuses on Services Type, Structure, Water Depth, and Region.
Segmentation based on Services Type
Segmentation based on Structure
Segmentation based on Water Depth
Segmentation based on Region
