Market Size of UK Offshore Oil And Gas Decommissioning Industry
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 |
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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 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 And Gas Decommissioning Market Size Summary
The United Kingdom offshore oil and gas decommissioning market is poised for growth, driven by the maturation of North Sea fields and the decline in natural gas and crude oil production. As production decreases, the demand for decommissioning activities is expected to rise, presenting opportunities for market players. However, the high costs and specialized expertise required for decommissioning pose challenges. Regulatory frameworks, such as the Petroleum Act of 1998 and oversight by the Offshore Petroleum Regulator for Environment and Decommissioning (OPRED), guide the decommissioning processes. Recent projects, like those undertaken by Spirit Energy and DNO North Sea, highlight ongoing decommissioning efforts, which are anticipated to contribute to market expansion.
The complexity of decommissioning deepwater platforms, particularly in the North Sea, necessitates advanced engineering and methodologies, potentially increasing market activity. The process involves significant costs, especially for plugging and abandoning wells, which are critical to preventing environmental issues. As the economic viability of existing rigs diminishes, companies may opt for decommissioning, further stimulating market growth. The market is moderately consolidated, with key players such as Veolia Environnement S.A. and Derrick Services (UK) Ltd. The presence of abandoned wells and collaborative efforts between sectors, like the agreement between the Nuclear Decommissioning Authority and the National Decommissioning Centre, are expected to drive increased decommissioning activities in the coming years.
UK Offshore Oil And Gas Decommissioning Market Size - Table of Contents
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1. MARKET OVERVIEW
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1.1 Introduction
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1.2 Market Size and Demand Forecast in USD billion, till 2028
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1.3 Crude Oil Production, in million barrels per day, till 2021
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1.4 Natural Gas Production, in billion cubic feet, till 2021
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1.5 Recent Trends and Developments
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1.6 Government Policies and Regulations
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1.7 Market Dynamics
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1.7.1 Drivers
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1.7.2 Restraints
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1.8 Supply Chain Analysis
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1.9 PESTLE Analysis
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2. MARKET SEGMENTATION BY WATER DEPTH
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2.1 Shallow Water
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2.2 Deepwater and Ultra-Deep Water
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UK Offshore Oil And Gas Decommissioning Market Size 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.