North Sea Offshore Decommissioning Market Size (2024 - 2029)

The North Sea offshore decommissioning market is poised for growth, driven by the need to address aging infrastructure in the oil and gas sector and the increasing demand for oil and gas. Despite challenges posed by fluctuating oil prices, which have led to reduced investment in upstream activities, the market is expected to expand significantly. The shallow water sector is anticipated to lead in decommissioning services due to the prevalence of outdated infrastructure. The United Kingdom is projected to be a key player in this market expansion, supported by its aging offshore assets and strict environmental regulations.

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Market Size of North Sea Offshore Decommissioning Industry

north sea offshore decommissioning market trends
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 5.00 %
Market Concentration Low

Major Players

north sea offshore decommissioning market key players

*Disclaimer: Major Players sorted in no particular order

North Sea Offshore Decommissioning Market Analysis

The North Sea offshore decommissioning market is expected to register a CAGR of over 5% during the forecast period of 2020 - 2025. Factors, such as aging offshore infrastructure in the 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 the upstream oil and gas industry, causing a slowdown for the market studied.

  • The shallow water sector is expected to maintain an edge in the decommissioning services market in the forecast period, owing to factors, like aging shallow water infrastructure.
  • The market is expected to see a significant increase see in the forecast period, as it was one of the earliest offshore regions to be explored and developed. The infrastructure installed 30-40 years ago at the peak of exploration in the region, are now being abandoned and decommissioned, which is expected to great a huge opportunity for the decommissioning market in the region.
  • The United Kingdom is expected to dominate the market growth, owing to factors, like aging offshore infrastructure, declining production from mature oilfields, and stringent environmental policies.

North Sea Offshore Decommissioning Industry Segmentation

The North Sea offshore decommissioning market report include:

Water Depth
Shallow Water
Deepwater and Ultra-deepwater
Geography
United Kingdom
Norway
Rest of North Sea
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North Sea Offshore Decommissioning Market Size Summary

The North Sea offshore decommissioning market is poised for significant growth, driven by the aging infrastructure of the oil and gas industry and the increasing demand for energy. As one of the earliest regions to explore and develop offshore resources, the North Sea is witnessing a substantial need for decommissioning services due to the abandonment of infrastructure installed decades ago. The shallow water sector is expected to maintain its dominance in the market, largely because most early offshore projects were located in these areas. The United Kingdom is anticipated to lead the market expansion, supported by its mature offshore infrastructure and stringent environmental regulations, which are prompting increased decommissioning activities.

The market is experiencing a shift as the average cost per well for decommissioning has significantly decreased, making it more economically viable. This trend, coupled with recovering oil prices, is expected to bolster the demand for decommissioning services. The UK is set to become a global hub for decommissioning, with substantial investments planned over the next decade. The consolidation of major companies like Aker Solutions, AF Gruppen SA, and John Wood Group PLC in the market underscores the competitive landscape. As governments show rising interest in decommissioning projects, the market is expected to see robust growth, driven by the need to address aging fields and comply with environmental policies.

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North Sea Offshore Decommissioning Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Market Size and Demand Forecast in USD billion, till 2025

    3. 1.3 North Sea Offshore Active Rig Count, till 2019

    4. 1.4 Recent Trends and Developments

    5. 1.5 Market Dynamics

      1. 1.5.1 Drivers

      2. 1.5.2 Restraints

    6. 1.6 Supply Chain Analysis

    7. 1.7 Porter's Five Forces Analysis

      1. 1.7.1 Bargaining Power of Suppliers

      2. 1.7.2 Bargaining Power of Consumers

      3. 1.7.3 Threat of New Entrants

      4. 1.7.4 Threat of Substitutes Products and Services

      5. 1.7.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Water Depth

      1. 2.1.1 Shallow Water

      2. 2.1.2 Deepwater and Ultra-deepwater

    2. 2.2 Geography

      1. 2.2.1 United Kingdom

      2. 2.2.2 Norway

      3. 2.2.3 Rest of North Sea

North Sea Offshore Decommissioning Market Size FAQs

The North Sea Offshore Decommissioning Market is projected to register a CAGR of greater than 5% during the forecast period (2024-2029)

Aker Solutions ASA , AF Gruppen S.A. , John Wood Group PLC , Able UK and Allseas Group are the major companies operating in the North Sea Offshore Decommissioning Market.

North Sea Offshore Decommissioning Market Report Snapshots

North Sea Offshore Decommissioning Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)