Global Well Abandonment Services Market by Application, Type, Product and Geography - Forecast and Analysis 2023-2027

The well abandonment services market is estimated to grow at a CAGR of 6.37% between 2022 and 2027. The size of the market is forecast to increase by USD 1522.38 million. The growth of the market depends on several factors, including the maturing oil and gas fields, the regulatory requirements for well abandonment, and the rise of renewable energy. 

This report extensively covers market segmentation by application (offshore and onshore), type (permanent and temporary), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021. 

What will the Size of the Well Abandonment Services Market be During the Forecast Period?

Download Report Sample to Unlock the Well Abandonment Services Market Size for the Forecast Period and Other Important Statistics

Parent Market Analysis 

Technavio categorizes the global well abandonment services market as a part of the global oilfield equipment and services within the global oil and gas market. The global oilfield equipment and services market covers products and companies engaged in upstream exploration and production (E and P) operations, production of equipment or service contracts, and is an important manufacturing sector which caters to the needs of the oil and gas upstream sector. Our research report has extensively covered external factors influencing the parent market growth during the forecast period. 

Well Abandonment Services Market: Key Drivers, Trends, Challenges, and Customer Landscape

The maturing oil and gas fields are notably driving the well abandonment services market growth, although factors such as the high costs associated with well abandonment projects may impede the market growth. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a decrease in demand for the market during the COVID-19 pandemic, a holistic analysis of drivers will help companies refine marketing strategies to gain a competitive advantage.   

Key Well Abandonment Services Market Driver

Maturing oil and gas fields are a key factor driving the global well abandonment services market growth. The need for the abandonment of oil and gas fields is majorly attributed to the decline in the production of crude oil or natural gas from the producing well when the well reaches the end of its economic life. When oil or gas production declines to a level below the well's operational expenses, and the revenue generated through the sale of the crude oil/natural gas is low, the oil/gas well becomes a liability for operators, as it is no more economically viable to continue with the operations. Oil and gas well decommissioning is performed in different stages, including platform preparation, well plugging and abandonment, conductor removal, mobilization/demobilization, and platform removal. As well abandonment is a part of the well decommissioning process, the increase in the number of aging oil fields is likely to increase well-decommissioning activities, which, in turn, will drive the growth of the global well abandonment services market during the forecast period.

Key Well Abandonment Services Market Trend

Technological advances in well abandonment techniques will fuel the global well abandonment services market growth. Well-decommissioning is an increasingly important activity in the oil and gas industry. Oil and gas companies have invested significantly in technologies that could reduce the time and cost of these essential operations. Operators in the GoM and the North Sea are increasingly focusing on offshore oil and gas well decommissioning due to the increasingly restrictive regulations and the rising associated costs of maintaining and operating aging oil and gas platforms. Moreover, ringless well abandonment is highly cost-effective (as it does not require a rig) and is applicable to a wide range of oil wells. The method complies with most well-abandonment requirements, along with a minimum footprint and quick project delivery. Many new technologies are also emerging, which reduce costs and improve project efficiency. Technological innovation in well-decommissioning techniques is likely to drive the growth of the market. This will reduce the time and cost of decommissioning operations when compared with traditional abandonment methods, including perforate and wash, cut and pull, and milling, by simplifying and streamlining the well abandonment process. The extensive use of such advanced technology is likely to drive the global well abandonment services market during the forecast period.

Key Well Abandonment Services Market Challenge

The high costs associated with well abandonment projects are a major challenge to the global well abandonment services market growth. A mature well is akin to a non-performing asset that produces little or no profits. A well is considered mature when the operating cost exceeds the revenue generated from producing crude oil or natural gas. During well abandonment, the weight of the materials that are required to be removed is one of the major factors on which the cost of the well abandonment project depends. To ensure maximum reduction in the operational costs associated while decommissioning an oil field, the major focus should be on the disconnection and removal of equipment and machinery, as they account for the majority of the project cost. Well abandonment costs fluctuate significantly due to changes in material/equipment condition, estimated risks, loss of key personnel, market volatility, supply chain inflation, industry experience, information management systems, and technical data. The costs of offshore well abandonment projects are comparatively higher than those of onshore projects. Therefore, the high costs associated with decommissioning projects translate into high costs for well abandonment, which is likely to adversely affect the growth of the global well abandonment services market during the forecast period.

Key Well Abandonment Services Market Customer Landscape

Our analysis of the Life Cycle of the Global well abandonment services market is from the innovator’s stage to the laggard’s stage. The report illustrates the lifecycle of the global well abandonment services market, focusing on the adoption rates of major countries such as the US, Saudi Arabia, China, the UK, and Norway. Our researchers have included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies for 2022-2027.

Global Well Abandonment Services Market Customer Landscape

Who are the Major Well Abandonment Services Market Vendors?                                     

Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market 

• acteon.com - The company offers well abandonment services, such as well as plug and abandonment. Also, it offers foundations, moorings, marine electronics and instrumentation, flow lines, offshore risers, and conductors for shallow and deepwater applications.

We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, such as

• A&T Well and Pump
• A Plus Well Service Inc.
• Acona
• AGR Holdco Ltd.
• BiSN Oil Tools Ltd.
• Calfrac Well Services Ltd.
• Coretrax Ltd.
• Dan Wood Co.
• Expro Group Holdings NV
• Halliburton Co.
• M & W Drilling LLC
• NexTier Oilfield Solutions Inc.
• Oceaneering International Inc.
• Petrofac Ltd.
• Proserv UK Ltd.
• Schlumberger Ltd.
• TechnipFMC plc
• Weatherford International Plc
• Well Engineering Partners (WEP) BV.

Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak. 

What is the Fastest-Growing Segment in the Well Abandonment Services Market?

The market share growth by the Offshore segment will be significant during the forecast period. In 2022, the well abandonment services market in offshore locations accounted for the largest share owing to the high costs associated with offshore operations owing to the highly complex and harsh environment and the need for more equipment. The segment is expected to grow significantly owing to the numerous mature offshore oil and gas wells in many areas globally, especially in the GoM and the North Sea. Well abandonment is generally conducted using a drilling rig. However, technologies have developed to the extent where well abandonment can be done without using rigs. 

Get the full insights on the market contribution of various segments Request a PDF Sample

The offshore segment showed a gradual increase in market share, from USD 2,294.34 million in 2017 and continued to grow by 2021. The need for offshore well abandonment depends on various factors such as the water depth, well type, and the availability of rigless techniques. Moreover, many oil and gas well decommissioning activities are expected to be carried out during the forecast period. Such oil and gas well decommissioning activities are expected to significantly drive the growth of the offshore segment of the global well abandonment services market during the forecast period. Furthermore, our report provides a brief analysis of historical and forecast market share and their segment along with their reasons for growth from 2017 to 2027.

The growth of this segment is primarily attributed to the increasing adoption of the Well Abandonment Services Market by residential consumers, which is driven by changing lifestyles and a growing preference for comfort.

Which are the Key Regions for Well Abandonment Services Market?

For more insights on the market share of various regions Request PDF Sample now!

Europe is projected to contribute 47% by 2027. Our analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In 2022, the key countries contributing to the well abandonment services market in Europe were the UK, Norway, and Denmark. Decommissioning opportunities in Europe are extensive owing to the increasing number of mature offshore oil and gas fields in the North Sea and the stringent regulatory environment in major oil and gas-producing countries of the region, such as the UK and Norway. Numerous maturing assets in the UK Continental Shelf (UKCS) are at the end of their productive lives, which is likely to drive the demand for well abandonment services in the region. Many oil and gas wells are likely to be decommissioned during the forecast period.

This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. The COVID-19 pandemic led to a decline in demand for well abandonment services in Europe. The outbreak of COVID-19 negatively impacted the oil and gas industry. Oil and gas production activities came to a halt due to the imposition of lockdowns in major countries of Europe. This resulted in a rise in oil inventories, owing to which storage tanks were full, and oil and gas prices started declining. Thus, companies shut down their oil and gas wells temporarily as they were not generating profits. The shutdown of refineries is expected to propel the regional market growth, as it is expected to increase the demand for well abandonment services in the region during the forecast period.

Segment Overview

Our report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2028. We have segmented the market based on type, product, distribution channel, and region.

• Application Outlook (USD Million, 2017 - 2027)
  • Offshore
  • Onshore 

• Type Outlook (USD Million, 2017 - 2027)
  • Permanent
  • Temporary

• Region Outlook (USD Million, 2017 - 2027)
  • North America
    • The U.S.
    • Canada
  • South America
    • Brazil
    • Argentina
    • Chile
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

  Well Abandonment Services Market Scope
  Report Coverage	Details
  Page number	120
  Base year	2022
  Historical year	2017-2021
  Forecast period	2023-2027
  Growth momentum & CAGR	Accelerate at a CAGR of 6.37%
  Market growth 2023-2027	$1522.38 million
  Market structure	Fragmented
  YoY growth (%)	4.43
  Regional analysis	Europe, North America, South America, the Middle East and Africa, and APAC
  Performing market contribution	Europe at 47%
  Key consumer countries	US, Saudi Arabia, China, UK, and Norway
  Competitive landscape	Leading companies, Competitive Strategies, Consumer engagement scope
  Key companies profiled	A&T Well and Pump, A Plus Well Service Inc., Acona, Acteon Group Ltd., AGR Holdco Ltd., BiSN Oil Tools Ltd., Calfrac Well Services Ltd., Coretrax Ltd., Dan Wood Co., Expro Group Holdings NV, Halliburton Co., M & W Drilling LLC, NexTier Oilfield Solutions Inc., Oceaneering International Inc., Petrofac Ltd., Proserv UK Ltd., Schlumberger Ltd., TechnipFMC plc, Weatherford International Plc, and Well Engineering Partners (WEP) BV.
  Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
  Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

  Request PDF sample

  What are the Key Data Covered in this Well Abandonment Services Market Report?

  • CAGR of the market during the forecast period 2023-2027
  • Detailed information on factors that will drive well abandonment services market growth during the next five years
  • Precise estimation of the well abandonment services market size and its contribution to the parent market
  • Accurate predictions on upcoming trends and changes in consumer behavior
  • The growth of the well abandonment services industry across Europe, North America, the Middle East and Africa, APAC, and South America
  • A thorough analysis of the market’s competitive landscape and detailed information on vendors
  • Comprehensive details of factors that will challenge the growth of well abandonment services market vendors

  We can help! Our analysts can customize this report to meet your requirements. Get in touch