Offshore decommissioning refers to removing offshore oil and gas infrastructure once production has permanently ceased on offshore oil and gas fields and facilities. Offshore structures require specialized equipment to dismantle them safely due to their large scale and location in deep waters. The global offshore decommissioning market provides cost effective solutions to dismantle offshore infrastructure and remediate the seabed at the end of field life. This reduces operating expenses for oil & gas operators.

The global offshore decommissioning market is estimated to be valued at US$ 7.07 Bn in 2024 and is expected to exhibit a CAGR of 5.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
Cost reduction through innovation has been a key trend driving the offshore decommissioning market. To reduce project costs, market players are investing in new technologies and efficient solutions. For example, modular construction and the use of robots allow for dismantling activities to be carried out faster while minimizing the risks to personnel. Standardization of equipment and procedures also helps lower costs on a per project basis. As operating budgets continue to be under pressure, cost leadership will be an important factor for vendors to succeed in this landscape. Standardization and technological advancements in decommissioning are expected to boost market growth over the forecast period.

Segment Analysis
The global offshore decommissioning market can be segmented based on type, service, depth, and region. Based on type, the market is segmented into shallow water decommissioning and deep water decommissioning. The shallow water decommissioning segment dominates the market as it is easier and less expensive to operate in shallow water compared to deep water. Thus majority of oil and gas installations are located in shallow water, making it the larger market segment.

Key Takeaways
The Global Offshore Decommissioning Market Size is expected to witness high growth over the forecast period due to the large number of aging offshore oil and gas installations across the world. The global offshore decommissioning market is estimated to be valued at US$ 7.07 Bn in 2024 and is expected to exhibit a CAGR of 5.8% over the forecast period 2023 to 2030.

Regional analysis shows Europe dominates the market currently due to a high number of installations coming to the end of their production life in the North Sea. Norway accounted for the largest share in the European offshore decommissioning market owing to the presence of old and abandoned oil platforms.

Key players operating in the offshore decommissioning market are Aker Solutions, AF Gruppen ASA, TGOOD Global Ltd., Exxon Mobil Corporation, Petrogas NB Ltd., TechnipFMC plc, R amboll Group, John Wood Group plc, and Allseas Group S.A.

 

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