This news is classified in: Traditional Energy Oil and Gas
May 15, 2018
The report, now available on ASDReports, recognizes the following companies as the key players in the global offshore decommissioning market: AF Gruppen, Aker Solutions, HEEREMA MARINE CONTRACTORS, John Wood Group, Oceaneering International, and Ramboll Group.
Commenting on the report, an analyst said: “One trend in the market is rising investments in renewable energy. The shift from fossilfuels to renewable sources such as wind, solar, and geothermal is the key to achieving economic, social, and environmental development. According to the IEA, the global energy investment in 2016 were over $1.7 trillion, though lower compared with that in 2015.”
According to the report, one driver in the market is maturing oil and gas fields and aging platforms. The decommissioning of an oil field occurs mainly due to the declining production of crude oil or natural gas from the producing well. When the oil well becomes a liability for the oil company, the offshore facility is required to be decommissioned by abandoning and plugging the well.
Further, the report states that one challenge in the market is high cost associated with offshore decommissioning projects. A mature or an aging well is like a non-performing asset that produces little or no profits. This is majority when the operating cost exceeds the revenue generated from producing the crude oil or natural gas. To ensure maximum reduction in the operational cost associated while decommissioning an oil field, the major focus should be on disconnection and removal as they account for majority of the project cost.
Read more on ASDReports!
