LONDON–(BUSINESS WIRE)–The global offshore decommissioning market size is expected to grow by USD 1.77 billion during 2020-2024, progressing at a CAGR of almost 6% throughout the forecast period, according to the latest report by Technavio. The report offers an up-to-date analysis regarding the current market scenario, latest trends and drivers, and the overall market environment. The report also provides the market impact and new opportunities created due to the COVID-19 pandemic. Download a Free Sample of the Market Impact of COVID-19.
The need for decommissioning an oil field arises due to a decline in production of crude oil or natural gas from the producing well. When the production reduces to the level where the operating cost involved in running the offshore facility is high, and the revenue generated by selling the crude oil is low, the oil well becomes a liability for the oil company as it is no more economically feasible to continue with the operations. For instance, according to the EIA, crude oil prices crashed from over USD 1.2 per gallon in 2017 to USD 0.8 per gallon in 2020 in the US. The decline in the price of crude oil will drive well decommissioning leading to the growth of the market.
- In 2019, the major offshore decommissioning market share came from the well plugging and abandonment segment, which is expected to witness the fastest growth during the next five years. This is primarily because of the presence of numerous mature offshore oil and gas wells globally, especially in the GoM and the North Sea.
- Europe was the largest offshore decommissioning market in 2019, and the region will offer several growth opportunities to market vendors during the forecast period. This is attributed to factors such as the increasing number of mature offshore infrastructure in the basins of the North Sea and stringent regulatory environment in major oil and gas-producing countries of the region such as the UK and Norway.
- The global offshore decommissioning market is fragmented. Aker Solutions ASA, General Electric Co., Halliburton Co., John Wood Group Plc, Oceaneering International Inc., Ramboll Group AS, Schlumberger Ltd., TechnipFMC Plc, TETRA Technologies Inc., and Weatherford International Plc. are some of the major market participants. To help clients improve their market position, this offshore decommissioning market forecast report provides a detailed analysis of the market leaders.
- As the business impact of COVID-19 spreads, the Global Offshore Decommissioning Market 2020-2024 is expected to have negative & at par growth. As the pandemic spreads in some regions and plateaus in other regions, we revaluate the impact on businesses and update our report forecasts.
Read the full report here: www.technavio.com/report/offshore-decommissioning-market-industry-analysis?
Rising Investments in Renewable Energy will be a Key Market Trend
The rising investment in renewable energy is one of the key emerging trends in the global offshore decommissioning market. The key to achieving economic, social, and environmental development is to shift from fossil fuels to renewable sources such as wind, solar, and geothermal. Thus, many countries are adopting renewable energy sources such as solar energy, mainly due to the reduction in the overall installation cost associated with solar photovoltaics. This has increased the adoption of alternative sources of energy, which is driving attention away from the oil and gas sector, thus leading to the growth of the well decommissioning market.
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Offshore Decommissioning Market 2020-2024 : Key Highlights
- CAGR of the market during the forecast period 2020-2024
- Detailed information on factors that will assist offshore decommissioning market growth during the next five years
- Estimation of the offshore decommissioning market size and its contribution to the parent market
- Predictions on upcoming trends and changes in consumer behavior
- The growth of the offshore decommissioning market
- Analysis of the market’s competitive landscape and detailed information on vendors
- Comprehensive details of factors that will challenge the growth of offshore decommissioning market vendors
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