Product Code: 47337
The market for Offshore Decommissioning market is expected to grow at a CAGR of over 5% during the forecast period of 2020 - 2025. Factors such as aging offshore infrastructure in oil and gas industry, rising offshore oil and gas production activities, and increasing oil and gas demand are expected to be major drivers driving the market. However, the volatile nature of oil prices in recent years led to decreased capital expenditure in upstream oil & gas industry causing a slowdown for the market studied.
- Shallow water sector is expected to maintain an edge in the decommissioning services market in the forecast period, owing to the factors such as aging shallow water infrastructure.
- The main opportunity for the offshore decommissioning market is the declining production from the aging fields active over 2-3 decades. This is due to the fact that offshore projects are costly and have a long period of return. The regions currently leading decommissioning market are the ones who were at the forefront of offshore technology over 20 or 30 years ago.
- Europe is expected to dominate the market growth with majority of the demand coming from the countries such as the UK and Norway.
Key Market Trends
Shallow Water to Dominate the Market
- Shallow water segment is expected to be maintain its dominance in forecast period, owing to factors like low operational cost and recovering oil prices in the oil and gas market..
- Most of the offshore projects being decommissioned are in shallow water, due to the fact that early offshore products were mainly shallow water, while deepwater projects have sprung up in recent years.
- Over the last few years the average cost per well for decommissioning have gone done significantly, resulting in an growth of the market being studied in the forecasted period.
- Therefore, with a number of offshore oil and gas projects, along with the rising investments in offshore oil and gas sector, the demand for decommissioning is expected to grow significantly during the forecast period.
Europe to Dominate the Market
- Europe is expected to dominate the market in forecast period due to the region being one of the first markets to use offshore oil & gas infrastructure, most of which are at decommissioning age in recent years and forecast period.
- In Europe, over 950,000 ton of topsides are slated for removal across the North Sea, of which more than 605,000 ton will be from UKCS. The United Kingdom is expected to spend around EUR 15.3 billion on decommissioning, over the next ten years. Approximately, 2,400 wells are expected to be decommissioned across the whole North Sea and West of Shetland region, by 2027. Around 914 of these wells are located across the Norwegian, Danish, and Dutch sectors.
- In 2018, 8% of the overall expenditure of the oil and gas industry in UKCS went into decommissioning, this percentage was expected to grow over 10% in coming years.
- UK is set to become the global hub for decommissioning, reasons being UK government's acknowledge for the same and UK being the most mature decommissioning markets.
- Therefore, factors such as rising interests of governments towards decommissioning projects along with aging mature fields in the region are expected to drive the demand for Offshore Decommissioning Services market in the coming years.
The offshore decommissioning services market is moderately consolidated. Some of the major companies operating in the market being studied are Aker Solutions ASA, AF Gruppen S.A., John Wood Group PLC, and Able UK among others.
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Table of Contents
- 1.1 Scope of the Study
- 1.2 Market Definition
- 1.3 Study Assumptions
2 EXECUTIVE SUMMARY
3 RESEARCH METHODOLOGY
4 MARKET OVERVIEW
- 4.1 Introduction
- 4.2 Market Size and Demand Forecast, in USD billion, till 2025
- 4.3 Recent Trends and Developments
- 4.4 Market Dynamics
- 4.4.1 Drivers
- 4.4.2 Restraints
- 4.5 Supply Chain Analysis
- 4.6 Porter's Five Forces Analysis
- 4.6.1 Bargaining Power of Suppliers
- 4.6.2 Bargaining Power of Consumers
- 4.6.3 Threat of New Entrants
- 4.6.4 Threat of Substitutes Products and Services
- 4.6.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
- 5.1 Water Depth
- 5.1.1 Shallow Water
- 5.1.2 Deepwater and Ultra-Deepwater
- 5.2 Geography
- 5.2.1 North America
- 5.2.2 Europe
- 5.2.3 Asia-Pacific
- 5.2.4 South America
- 5.2.5 Middle-East and Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Strategies Adopted by Leading Players
- 6.3 Company Profiles
- 6.3.1 Able UK
- 6.3.2 Aker Solutions ASA
- 6.3.3 AF Gruppen S.A.
- 6.3.4 John Wood Group PLC
- 6.3.5 DNV GL
- 6.3.6 Heerema Marine Contractors (HMC)
- 6.3.7 Allseas Group
- 6.3.8 TechnipFMC PLC
- 6.3.9 DeepOcean Group Holding B.V.
- 6.3.10 Equinor ASA
7 MARKET OPPORTUNITIES AND FUTURE TRENDS