Well Abandonment Services Market Share, Size, Trends, Industry Analysis Report, By Application (Offshore, Onshore); By Type; By Region; Segment Forecast, 2023-2032
- Published Date:May-2023
- Pages: 115
- Format: PDF
- Report ID: PM3271
- Base Year: 2022
- Historical Data: 2019-2021
Report Outlook
The global well abandonment services market was valued at USD 1,194.17 million in 2022 and is expected to grow at a CAGR of 6.7% during the forecast period. Emerging economies like India & China are witnessing rapid industrialization and urbanization, driving energy demand. This leads to increased exploration and production activities, which causes the need for well abandonment services. India's urban population is expected to increase by an estimated 270 million people between now and 2040, the same as establishing a new metropolis the size of Los Angeles every year. This will fuel the growth of the well abandonment services market in the coming years.
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Technological advancements are making well-abandonment services more efficient and cost-effective. For example, ringless good abandonment techniques can reduce costs and improve safety compared to traditional rig-based methods. Xclude is a reservoir that drastically lowers plugging operations costs by properly separating the well from the reservoir fluids. With existing tools and without a rig, Xclude is secure and ecologically responsible. The barrier in Aubin's method is made in the reservoir, as opposed to other ways that make the barrier in the well-bore.
California has more than 5,000 Abandoned oil and gas wells. Over the past few decades, California has seen a decline in its oil & gas production. Now, these well are not used to extract oil & gas. Operators are plugging a well & decommissioning these production facilities when a well approaches the end of its productive life (also known as remediation). Recently it increased the funding for the California Geologic Energy Management Division (CalGEM) for the oil well abandonment and remediation; this will enhance the growth and demand for such services in the future.
The decommissioning of the infrastructure that has kept the UK's electricity flowing for the past 50 years is expected to cost billions of pounds, according to research released by Offshore Energies UK (OEUK), the major trade body for the UK's offshore energy industry. This will further create a wide range of opportunities for growth and demand for the good abandonment services market in the coming years.
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Industry Dynamics
Growth Drivers
The global oil and gas industry has been operating for many decades, and many oil and gas wells are reaching the end of their productive life. These aging wells must be permanently abandoned and decommissioned, providing a significant opportunity for good abandonment service providers. The shift towards zero-emission is leading to a decreased demand for fossil fuels. As a result, many oil and gas fields are reaching the end of their economic lives, creating a need for decommissioning services. This is driving the growth of the market.
Advances in technology are leading to the development of more advanced and efficient well-abandonment techniques. This increases the efficiency of well abandonment operations and reduces the associated costs. There is a growing awareness of the impact of the oil and gas industry on the environment, and there is increasing pressure on operators to ensure that they are operating in an environmentally responsible manner. Abandonment services play a critical role in ensuring that aging wells are properly decommissioned and abandoned to minimize their environmental impact.
Growing demand for renewable energy is fuelling the growth of the market. There is a shift towards renewable energy sources, leading to a need for decommissioning and abandonment of obsolete oil and gas wells to make way for renewable energy infrastructure. This will drive demand for well abandonment services in the coming years. Despite the shift towards renewable energy, the global oil and gas market is expected to grow in the coming years. This leads to increased investment in the oil and gas industry, expected to drive demand for well abandonment services.
Report Segmentation
The market is primarily segmented based on application, type and region.
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By Application |
By Type |
By Region |
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Offshore segment is expected to witness fastest growth during forecast period
The offshore segment is expected to experience significant growth due to the increasing number of offshore wells reaching the end of their productive lives. Decommissioning these wells requires specialized expertise and equipment, which has led to an increase in demand for offshore well abandonment services. The growing demand for renewable energy sources is also expected to drive the offshore well abandonment services market as more offshore platforms are repurposed for renewable energy production.
Permanent Type accounted for the largest market share in 2022
Permanent well abandonment services accounted for the largest market share in 2022. As governments worldwide introduce more stringent regulations for decommissioning abandoned or unused wells, the demand for permanent good abandonment services is expected to increase. There is a growing focus on environmental sustainability, and endless good abandonment is an important part of environmental protection efforts. Increasing demand for renewable energy is fuelling the growth of the market. As more companies look to repurpose their wells for renewable energy infrastructure, the need for permanent well abandonment services is expected to increase.
The demand in Asia Pacific is projected to have a higher growth during forecast period
Asia Pacific is expected to have a higher growth rate for the well abandonment services market. This is also experiencing a shift towards renewable energy sources, which is leading to a need for decommissioning and abandonment of obsolete oil and gas wells to make way for renewable energy infrastructure. This is expected to drive demand for well abandonment services in the region. The regulatory environment for well abandonment in the Asia Pacific region is evolving, with new regulations and guidelines being introduced in several countries. For example, in Australia, the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) has introduced rules for the decommissioning and abandoning of offshore oil and gas wells.
North America is expected to have a larger revenue share. It has a well-established oil and gas industry with many aging wells that must be permanently abandoned. This provides a significant opportunity for well-abandonment service providers to generate revenue. The regulatory environment for good abandonment in North America is well-defined and enforced, expected to drive demand for well-abandonment services. The U.S. Bureau of Safety and Environmental Enforcement (BSEE) has specific regulations for well abandonment, including requirements for plugging and abandoning wells to ensure safety and environmental protection. Canada also has rules that require the proper abandonment of oil and gas wells.
Competitive Insight
Some of the major players operating in the global market include A&T Well, A Plus Well, Acteon Group, AGR Holdco, BiSN Oil Tools, Calfrac Well Services, Coretrax, Dan Wood, Expro Group, Halliburton, M & W Drilling, NexTier Oilfield Solutions, Oceaneering International, Petrofac, Proserv UK, Schlumberger, TechnipFMC, Weatherford International, & Well Engineering.
Recent Developments
- In January 2023, the National Decommissioning Center, the University of Aberdeen, and Claxton collaborated to deliver the joint development, which is backed by financing and is under the project management of the Net Zero Technology Centre. The joint venture intends to develop and improve the gas-jet technology for cutting metal in seep-water environments.
- In September 2022, Coretrax, the industry leader in well integrity & production optimization, strengthened its commitment in the European region through its distribution partnership with Germany's DVK Energy, a maintenance specialist.
Well Abandonment Services Market Report Scope
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Report Attributes |
Details |
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Market size value in 2023 |
USD 1,272.39 million |
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Revenue forecast in 2032 |
USD 2,280.87 million |
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CAGR |
6.7% from 2023–2032 |
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Base year |
2022 |
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Historical data |
2019- 2021 |
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Forecast period |
2023- 2032 |
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Quantitative units |
Revenue in USD million and CAGR from 2023 to 2032 |
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Segments covered |
By Application, By Type, By Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America; Middle East & Africa |
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Key companies |
A&T Well and Pump, A Plus Well Service, cona, Acteon Group, AGR Holdco, BiSN Oil Tools, Calfrac Well Services, Coretrax, Dan Wood, Expro Group Holdings NV, Halliburton, M & W Drilling LLC, NexTier Oilfield Solutions, Oceaneering International, Petrofac, Proserv UK, Schlumberger, TechnipFMC plc, Weatherford International Plc, and Well Engineering Partners (WEP) BV. |
FAQ's
The well abandonment services market report covering key segments are application, type and region.
Well Abandonment Services Market Size Worth $2,280.87 Million By 2032.
The global well abandonment services market expected to grow at a CAGR of 6.7% during the forecast period.
Asia Pacific is leading the global market.
key driving factors in well abandonment services market are technological advances in well abandonment techniques.
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