UK Offshore Oil And Gas Decommissioning Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 1.00 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
UK Offshore Oil And Gas Decommissioning Market Analysis
The United Kingdom offshore oil and gas decommissioning market is expected to register a CAGR of more than 1% over the forecast period.
COVID-19 had a detrimental effect on the market.Presently, the market has reached pre-pandemic levels.
- The market is likely to be driven by things like the decrease in natural gas and crude oil production and the rise in alternative energy sources.
- But the market is likely to be limited by the high cost and high level of expertise needed for decommissioning.
- The North Sea fields are maturing, and the demand for decommissioning is expected to rise as crude oil and natural gas production reduces. This may act as an opportunity for the market players.
UK Offshore Oil And Gas Decommissioning Market Trends
Increasing Decommissioning Projects to Drive the Market
- The Petroleum Act of 1998 says how offshore oil and gas infrastructure and pipelines on the United Kingdom Continental Shelf (UKCS) should be taken down.The Offshore Petroleum Regulator for Environment and Decommissioning (OPRED), which is part of the Department for Business, Energy, and Industrial Strategy, is in charge of ensuring that the Petroleum Act of 1998's provisions are followed.
- In September 2022, Spirit Energy hired marine consultancy ABL to assist in the decommissioning of three offshore rigs in the United Kingdom's seas. As part of the contract with Spirit Energy Production, ABL's Aberdeen branch will provide MWS and maritime consultancy services for the UK operator's decommissioning portfolio in the southern North Sea and the Irish Sea. The three oil and gas platforms will be put into storage as part of the project, which will last until 2025. The topside and jackets for the Audrey A, Audrey B, and Ensign platforms will need to be removed as part of the restoration. Many projects are in preparation for decommissioning and may aid the growth of the market.
- In February 2022, the operator DNO North Sea and the partner Tullow Oil SK, an oil and gas firm with headquarters in the UK, which are the owners of the Ketch and Schooner gas fields, will have 20 platform wells and one subsea well. The firms considered several technical and business alternatives before deciding to decommission the fields since they were unable to discover a workable way to extend their economic life. The cost of decommissioning has been estimated at USD 33 million.Facilities such as these may incentivize the decommissioning of the rigs due to the end of the rig's economic life, which may aid the growth of the market.
- Natural gas production in the country decreased by 16.9%, to 3.16 billion cubic feet per day in 2021 from 3.81 billion cubic feet per day in 2020. The output may decline further in the forecast period, which could incentivize the market players to decommission the rigs in case they are not able to produce enough below the cost price and thereby boost the United Kingdom offshore oil and gas decommissioning market.
- In the next few years, the United Kingdom's offshore oil and gas decommissioning market is likely to be driven by a growing number of decommissioning projects.
Deepwater and Ultra-Deep Water Segment to Witness Growth
- For the decommissioning and removal of a deepwater platform, the removal design process needs to pay close attention to the methodology, engineering, and procedures. All of these are likely to be more complicated than for smaller shallow water platforms.This requires higher expertise and better equipment to complete the project.
- Many of the platforms in deeper water are reaching the end of their useful lives in areas such as the North Sea, and decommissioning is expected to become necessary. The process of decommissioning these larger and deeper water platforms is expected to be more complex and require more detailed and engineered solutions to plan and execute such operations safely and effectively. An increasing number of rigs to decommission is expected to aid the market.
- The main parts of the decommissioning process are plugging and abandoning the wells, which also cost the most.The wellbore must be cleaned out and plugs carefully installed in the well. This must be done correctly to prevent any environmental issues from leaving the underwater well open. In deep and ultra-deep water, it accounts for even higher costs for decommissioning. Increasing efforts to modernize the ecological effects in this area are expected to aid the market's growth.
- According to the IEA, nearly all United Kingdom petroleum and natural gas production comes from offshore fields. The rig count in the United Kingdom region was estimated by Baker Hughes Company to be around 10 units in December 2022. The companies in the region may choose to decommission the rigs if the production costs increase or the crude oil prices go below the extraction costs.
- Hence, the deep water and ultra-seep water segments are expected to witness growth in the forecast period due to an increase in investments and advancements in technology.
UK Offshore Oil And Gas Decommissioning Industry Overview
The United Kingdom offshore oil and gas decommissioning market is moderately consolidated. Some of the key players (not in any particular order) in this market are Veolia Environnement S.A., Derrick Services (UK) Ltd., Perenco SA, Ramboll Group A/S, and AF Gruppen ASA.
UK Offshore Oil And Gas Decommissioning Market Leaders
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Veolia Environnement S.A.
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Derrick Services (UK) Ltd
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Perenco SA
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Ramboll Group A/S
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AF Gruppen ASA
*Disclaimer: Major Players sorted in no particular order
UK Offshore Oil And Gas Decommissioning Market News
- November 2022: there were more than 2,000 abandoned oil and gas wells in the North Sea begin, The high number of abandoned wells is expected to lead to an increase in activity as operations worth EUR 20 billion are decommissioned and shut down. The research was conducted by industry group Offshore Energies UK (OEUK), formerly Oil & Gas UK, which provides fresh insight into petroleum decommissioning efforts.
- September 2022: The Nuclear Decommissioning Authority (NDA) of the United Kingdom and the National Decommissioning Centre (NDC) of the United Kingdom signed a three-year collaborative research agreement, the first of its type involving the nuclear and oil and gas decommissioning industries.
UK Offshore Oil & Gas Decommissioning Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Scope of the Study
- 1.2 Market Definition
- 1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
- 4.1 Introduction
- 4.2 Market Size and Demand Forecast in USD billion, till 2028
- 4.3 Crude Oil Production, in million barrels per day, till 2021
- 4.4 Natural Gas Production, in billion cubic feet, till 2021
- 4.5 Recent Trends and Developments
- 4.6 Government Policies and Regulations
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4.7 Market Dynamics
- 4.7.1 Drivers
- 4.7.2 Restraints
- 4.8 Supply Chain Analysis
- 4.9 PESTLE Analysis
5. MARKET SEGMENTATION BY WATER DEPTH
- 5.1 Shallow Water
- 5.2 Deepwater and Ultra-Deep Water
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Strategies Adopted by Leading Players
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6.3 Company Profiles
- 6.3.1 Veolia Environnement S.A.
- 6.3.2 Derrick Services (UK) Ltd.
- 6.3.3 Perenco SA
- 6.3.4 Ramboll Group A/S
- 6.3.5 AF Gruppen ASA
- 6.3.6 John Lawrie Group Ltd.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityUK Offshore Oil And Gas Decommissioning Industry Segmentation
The goal of decommissioning offshore oil and gas infrastructure is to leave the sea clean. This is done by removing offshore oil and gas infrastructure and permanently sealing wells so that any remaining hydrocarbons can't leak into the sea or move between different layers of rock.
The market is segmented by water depth into shallow water, deep water, and ultra-deep water. The report offers the market size and forecasts in revenue (USD billion) for all the above segments.
UK Offshore Oil & Gas Decommissioning Market Research FAQs
What is the current UK Offshore Oil And Gas Decommissioning Market size?
The UK Offshore Oil And Gas Decommissioning Market is projected to register a CAGR of greater than 1% during the forecast period (2024-2029)
Who are the key players in UK Offshore Oil And Gas Decommissioning Market?
Veolia Environnement S.A., Derrick Services (UK) Ltd, Perenco SA , Ramboll Group A/S and AF Gruppen ASA are the major companies operating in the UK Offshore Oil And Gas Decommissioning Market.
What years does this UK Offshore Oil And Gas Decommissioning Market cover?
The report covers the UK Offshore Oil And Gas Decommissioning Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the UK Offshore Oil And Gas Decommissioning Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
UK Offshore Oil And Gas Decommissioning Industry Report
Statistics for the 2024 UK Offshore Oil And Gas Decommissioning market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. UK Offshore Oil And Gas Decommissioning analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
