by The United Kingdom offshore decommissioning market involves removing non-producing oil and gas infrastructure from offshore sites. Such infrastructure includes platforms, subsea pipelines and umbilicals. Offshore decommissioning helps restore the seabed to its original state after production stops. The rising maturity of North Sea oil and gas fields has led to a growing need for decommissioning aging infrastructure as reserves deplete. Removal and disposal of disused offshore infrastructure requires technical expertise and specialised equipment. Key players like Veolia Environnement S.A., Derrick Services (UK) Ltd, Perenco SA, Ramboll Group A/S and AF Gruppen ASA provide decommissioning and waste management services for oil firms.
The Global United Kingdom Offshore Decommissioning Market Size is estimated to be valued at US$ 1.30 Bn in 2024 and is expected to exhibit a CAGR of 8.5% over the forecast period 2024-2031.
Key Takeaways
Key players operating in the United Kingdom offshore decommissioning market are Veolia Environnement S.A., Derrick Services (UK) Ltd, Perenco SA, Ramboll Group A/S and AF Gruppen ASA. Decommissioning aging oil and gas infrastructure requires technical expertise that these established players provide.
The market sees significant opportunities from the rising need for environmental remediation services as infrastructure grows obsolete. Firms are contract decommissioning contracts worth billions to efficiently remove disused rigs, pipelines and platforms.
Globally, key players are expanding their decommissioning services beyond the UK North Sea to other mature oil-producing regions like Norway and the Gulf of Mexico. This helps diversify revenue streams as the UK market gradually transitions away from fossil fuel production.
Market Drivers
The growing maturity of oil and gas fields in the UK North Sea is a major driver for the decommissioning market. As reservoirs near depletion after decades of production, infrastructure loses economic viability and requires planned removal. Rising regulatory push for environmental remediation of offshore sites after use further bolsters demand for specialized contractors to securely decommission assets.
PEST Analysis
Political: The UK government has issued strict policies and regulations regarding offshore oil and gas decommissioning. New legislations ensure minimum impact on the marine environment during the decommissioning process.
Economic: Fluctuating oil prices impact investment decisions in the UK offshore sector. Lower oil prices in recent years have led to prioritization of older infrastructure decommissioning to cut maintenance costs.
Social: Growing environmental awareness in the UK has increased focus on responsible decommissioning practices that limit air, water, noise pollution and prevent accidents. Local communities want jobs and economic benefits from decommissioning projects.
Technological: Advancements in robotics, renewable technologies aid in developing new solutions for offshore structure removal. Drones and remote operated vehicles enable inspection and dismantling in a safer, cheaper way compared to traditional diver-led methods.
The UK offshore decommissioning market is concentrated in the North Sea region in terms of value. Decommissioning of aging platforms and wells in the Southern North Sea, Central North Sea and Northern North Sea contributes over 70% of total market revenues. Prominent areas include the Brent field, Forties field and the Morecambe field.
The Eastern Mediterranean region is projected to be the fastest growing market for offshore decommissioning during the forecast period. Countries like Egypt and Israel are expected to commence infrastructure decommissioning in the coming years as offshore oil and gas fields mature. Discovery of new hydrocarbon reserves and upcoming projects in this region will drive future decommissioning requirements.
What Are The Key Data Covered In This United Kingdom Offshore Decommissioning Market Report?
:- Market CAGR throughout the predicted period
:- Comprehensive information on the aspects that will drive the United Kingdom Offshore Decommissioning’s growth between 2024 and 2031.
:- Accurate calculation of the size of the United Kingdom Offshore Decommissioning and its contribution to the market, with emphasis on the parent market
:- Realistic forecasts of future trends and changes in consumer behaviour
:- United Kingdom Offshore Decommissioning Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa
:- A complete examination of the market’s competitive landscape, as well as extensive information on vendors
:- Detailed examination of the factors that will impede the expansion of United Kingdom Offshore Decommissioning vendors
FAQ’s
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Q.3 What are the market’s opportunities, risks, and general structure?
Q.4 Which of the top United Kingdom Offshore Decommissioning companies compare in terms of sales, revenue, and prices?
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*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
