Offshore Decommissioning Market

Offshore decommissioning refers to the decommissioning of oil and gas facilities that are approaching the end of their useful design life or economic operation. Aging offshore oil and gas structures are a major environmental concern and liability to countries, operators, contactors and affects surrounding marine environment.

The market is driven by various factors such as increasing oil and gas platform around the world. Especially in the North Sea region and Gulf of Mexico, the oil and gas industry is determined to remove these structures to reduce environmental penalties and also to reduce operating cost of these aging wells. However, the growth of this market is expected to be hindered by the uncertain cost and strict environmental and regulation laws surrounding the offshore decommissioning projects.

The global offshore decommissioning market is expected to grow at 6.93% CAGR during the forecast period. In 2016, the market was led by Europe, with a 70.1% share, followed by North America and Asia-Pacific with shares of 18.9% and 8.9%, respectively.

The global offshore decommissioning market has been segmented based type, service type, application and by region. On the basis of type, topside structures accounted for the largest market share of 56 % in 2016, with a market value of USD 2,586.4 million and is projected to grow at the highest CAGR of 9.05% during the forecast period. Based on application, shallow water accounted for the largest market share of 71.2 % in 2016, with a market value of USD 3,294.3 million and is projected to grow at a CAGR of 7.98% during the forecast period.