Energies Media
  • Magazine
    • Digital Magazine
    • Digital Magazine Archive
  • Features
  • Upstream
  • Midstream
  • Downstream
  • Renewable
    • Solar
    • Wind
    • Hydrogen
    • Nuclear
  • People
  • Events
  • Advertise
No Result
View All Result
Energies Media
No Result
View All Result

Offshore Decommissioning Market is Paved by Rising Oilfield Decommissioning Activities

by Energies Media Staff
July 10, 2024
in Exploration & Production, Offshore, Oil and Gas News, Scoop.it
c34bb751 a275 4f77 94d3 79e1656d14b3 1
Baker Hughes

Oil Companies Cut Millions in Wrong Places as Clean Energy Reshapes Industry

National Energy Talk Episode 41: Sarah Cove: Talent & Team Development in the Corporate Energy Sector

The offshore decommissioning market provides a wide range of services and solutions for the decommissioning of offshore oil and gas infrastructure at the end of their operational lives. These services include removal, transportation and disposal of offshore oil and gas platforms and pipelines. The offshore decommissioning process involves cleaning and removal of offshore structures, well plugging and abandonment, debris removal and site clearance.

As the offshore oil and gas fields reach maturity, a large number of offshore platforms are expected to be decommissioned in the upcoming years. Environmental regulations in various regions have further accelerated the pace of decommissioning activities. The offshore decommissioning market offers significant opportunities for service providers to replace outdated infrastructure and enable further development of oil and gas reserves. Growing expenditure on decommissioning of aging infrastructure is a key driver for market growth.

The Global offshore decommissioning market is estimated to be valued at US$ 639.8 Mn in 2024 and is expected to exhibit a CAGR of 32% over the forecast period from 2024 to 2030.

Key Takeaways

Key players operating in the offshore decommissioning market are Northrop Grumman Corporation, Sumitomo Heavy Industries Limited, Stirling Cryogenics BV, Sunpower Inc. (AMETEK Inc.), Superconductor Technologies Inc., RICOR, Advanced Research Systems Inc., Cobham PLC, Janis Research Company LLC, Cryomech Inc., and Chart Industries Inc.

The Offshore Decommissioning Market Demand is expected to witness significant growth due to growing demand for decommissioning of aging offshore infrastructure. Many offshore oil and gas fields are mature and have exceeded their design life, necessitatingdecommissioning of platforms and pipelines.

Major oil companies are increasingly outsourcing decommissioning projects to specialist service providers to benefit from their expertise and capabilities. Growing expenditure on decommissioning by international oil companies is expected to drive the global offshore decommissioning market during the forecast period.

Market Key Trends

Technological advances continue to remain a major trend in the offshore decommissioning market. Development of new technologies such as advanced remote operated vehicles (ROVs), modular construction methods, use of robotics are making decommissioning operations safer and more efficient. Automation is also expected to reduce man hours and risks associated with decommissioning activities. Adoption of new deepwater technologies will be crucial to tackle challenges of decommissioning of infrastructure in deeper waters. Growing technological capabilities are opening up new opportunities for market players in the offshore decommissioning industry.

Porter’s Analysis

Threat of new entrants: Low barriers of entry makes it easy for new players to enter the market and compete for existing customers. However, high capital requirement and presence of established players make it difficult for new players to penetrate the market.

Bargaining power of buyers: There exists a large number of medium and small sized buyers in the market which fragments the buyer power. However, few large buyers with significant purchase volume can negotiate on price and influence supplier’s offerings.

Bargaining power of suppliers: The market has few technology providers with differentiated offerings, giving them higher bargaining power against buyers. However, the threat of forward integration by customers mitigates supplier power.

Threat of new substitutes: Minimal threat as there exists no close substitute for offshore decommissioning services.

The North America region accounted for the major share in terms of value in the offshore decommissioning market owing to large number of aging oil and gas infrastructure in Gulf of Mexico and North Sea. Asia Pacific region is expected witness fastest growth during the forecast period attributed to growing offshore activities in countries like China, India and ASEAN. Japan is also expected to provide major growth opportunities with increasing number of aging oil rigs in the region.

Geographical Regions

The North America region accounted for the major share in terms of value in the offshore decommissioning market in 2024, owing to large number of aging oil and gas infrastructure primarily in Gulf of Mexico and North Sea in countries like US and Canada. The region is expected to continue its dominance during the forecast period as well.

Asia Pacific region is expected witness fastest growth during the forecast period from 2024 to 2030, attributed to growing offshore activities and exploration projects in countries like China, India and ASEAN countries. Countries like China, India and Malaysia are expected new hotspots for offshore decommissioning, attributed to increasing investments in offshore oil & gas developments. Japan is also expected to provide major growth opportunities in coming years with increasing number of aging oil rigs and infrastructure in the region.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it

Source: www.newswirestats.com

Author Profile
Energies Media Staff
Website
Author Articles
  • Energies Media Staff
    https://energiesmedia.com/author/oilmanwp/
    Drones
    September 8, 2025
    Revolutionizing Renewable Energy with Advanced Drone Technology
  • Energies Media Staff
    https://energiesmedia.com/author/oilmanwp/
    Global Shale Oil and Gas Landscape Set for Growth Beyond US
    August 26, 2025
    Global Shale Oil and Gas Landscape Set for Growth Beyond US
  • Energies Media Staff
    https://energiesmedia.com/author/oilmanwp/
    E-Fuels
    August 13, 2025
    2nd Annual World E-Fuels Summit
  • Energies Media Staff
    https://energiesmedia.com/author/oilmanwp/
    What Happens to Solar and Wind Systems During Natural Disasters?
    August 6, 2025
    What Happens to Solar and Wind Systems During Natural Disasters?
  • Energies Media Staff
    https://energiesmedia.com/author/oilmanwp/
    ship on body of water at night
    August 1, 2025
    Industry leaders to speak at Wood Mackenzie’s Carbon Capture, Utilization and Storage Conference 2025
  • Energies Media Staff
    https://energiesmedia.com/author/oilmanwp/
    ROGII and NRGX Technologies Ltd. Partner to Deliver Seamless LAS Data Integration for Upstream Workflows
    July 31, 2025
    ROGII and NRGX Technologies Ltd. Partner to Deliver Seamless LAS Data Integration for Upstream Workflows
Qatar
Expo

In This Issue

Energies Media Summer 2025

ENERGIES Media (Summer 2025)


Dewey Follett Bartlett, Jr.: Tulsa’s Champion of Independents


Why Energy Companies Need a CX Revolution


How to Deploy Next-Gen Energy Savers Without Disrupting Operations


Letter from the Managing Editor (Summer 2025)


The Hidden Value in Waste Oil: A Sustainable Solution for the Future


Meeting Emergency Preparedness and Response Criteria


Bringing Safety Forward in Offshore Operations


ENERGIES Cartoon (Summer 2025)


Energies Media Interactive Crossword Puzzle – Summer 2025


U.S. Oil Refineries Face Critical Capacity Test Amid Rising Demand


Maximizing Clean Energy Tax Credits Under the Inflation Reduction Act


Moving Energy Across Space and Time


NeverNude Coveralls: A Practical Solution for Everyday Dignity

E-Fuels
Expo
  • Terms
  • Privacy

© 2025 by Energies Media

No Result
View All Result
  • Magazine
    • Digital Magazine
    • Digital Magazine Archive
  • Features
  • Upstream
  • Midstream
  • Downstream
  • Renewable
    • Solar
    • Wind
    • Hydrogen
    • Nuclear
  • People
  • Events
  • Advertise

© 2025 by Energies Media