Market Trends of Offshore Decommissioning Services Industry
This section covers the major market trends shaping the Offshore Decommissioning Services Market according to our research experts:
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.
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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.
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