Effects of Decommissioning Oil Infrastructures

October 2022

Decommissioning is putting an offshore platform's offshore oil and gas operations to an end and restoring the ocean and seafloor as they were before the lease.

It is increasingly clear that offshore decommissioning of existing oil infrastructure is rising. In the North Sea, older rigs and stricter environmental rules that govern the industry are to blame. Since many current oil rigs were formerly commercially viable due to the low price of oil, owners were forced to review their assets and, in many cases, downgrade their fleet. Decommissioning of abandoned offshore facilities and wells is still required since they may be damaged and present a risk to the environment.

Decommissioning During the Pandemic

COVID-19 has impacted offshore decommissioning market trends in almost 215 nations. Countries have initiated lockdowns to counteract the negative consequences, which have hurt the offshore decommissioning industry. The epidemic presented the industry with several difficulties because of its global impact. Numerous elements, including supply chain risk, distribution issues, a lack of workforce workers, and drastically reduced development activities, have significantly affected current demand and supply. People are not as engaged as they once were. Significant strategic developments are going on. Due to the rising global consumer demand, MNCs are investing more in the offshore decommissioning sector.

Significant Holders of Offshore Decommissioning

Depending on the country-level market sizing, the four primary regions of the world that play a significant role in the worldwide offshore decommissioning business are North America, Europe, the Asia-Pacific region, and the Rest of the World (RoW). The market analysis for offshore decommissioning is quite thorough; you must comprehend every market participant. There is little question that, despite COVID-19’s events, the offshore decommissioning sector's current patterns and potential future growth will present enormous spreading prospects.

Based on the water depth segment, the shallow water segment dominated the global market in 2021 and will continue to do so throughout the anticipated period. The external and deepwater divisions of the offshore discharging market are separated based on the water depth at which discharge activities occur. The shallow water segment was the largest market and is anticipated to lead the offshore segment because of its reduced operational costs. However, because so many foundation installations take place at deepwater and ultra-deepwater depths, the deepwater portion will eventually clash with shallow water.

Alternative to Decommissioning

Numerous operators decide to reuse parts of their offshore facilities due to the expense of decommissioning a platform. Operators must choose between the reuse of the complete platform and the reuse of specific components depending on criteria like user intent, parameters, and wear and tear. These parts include, for instance, wellheads and production manifolds. Whether the structure has experienced corrosion is a crucial factor in this decision. Decommissioning a platform can be replaced more recently with wind and waterpower generation.


Numerous global companies now depend twice as much on the offshore decommissioning industry for support. Offshore decommissioning has been proposed as an effective, simple option to assess and manage waste products. Understanding the potential effects of contaminants on marine fauna is crucial to managing global decommissioning.

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