This news is classified in: Traditional Energy Oil and Gas
Jan 25, 2019
One of the major challenges faced by the oil and gas industry worldwide is the prevalence of prolonged uncertainty over oil prices. Low oil prices worldwide have negatively affected the oil and gas industry and some countries are still in recovery. However, low oil prices are good for one sector of the industry in particular – decommissioning.
With such established global offshore oil and gas fields, decommissioning becomes increasingly pertinent. As global offshore oil and gas fields mature, ageing structures must be removed. With the average lifetime of an offshore oil and gas field in the region of 25 to 40 years, this leaves many global structures in need of decommissioning.
The cost involved in the decommissioning varies from project to project and coast to coast. The majority of costs are associated with the jacket, topside and subsea structure removal phases and well P&A.
Decommissioning projects are highly complex, lengthy and expensive; the process involves many different stages and can take more than a decade to complete. With such environmental, economic and social pressures, the offshore decommissioning market is set to drastically increase, creating substantial business opportunities along the way.
The report analyst commented, "The global decommissioning market is likely to continue to grow as fields begin to age and become uneconomic to run especially in light of energy companies increasingly investing in renewable energies for the future, rather than traditional oil and gas."
Leading companies featured in the report who are developing Offshore Oil & Gas Decommissioning facilities include, BP, Canadian Natural Resources (CNR), Chevron Corporation, ConocoPhillips, Eni, ExxonMobil Corporation, Royal Dutch Shell &Total S.A.
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