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

Well Abandonment Services Market Forecast 2023-2027

The well abandonment services market is estimated to increase by USD 1.52 billion at a CAGR of 6.37% between 2022 and 2027. The maturing oil and gas fields are leading to an increase in the number of wells that need to be abandoned or decommissioned, creating a demand for well abandonment services and technologies. Regulatory requirements for well abandonment are also playing a key role, as governments and regulatory bodies are imposing stricter rules and regulations to ensure the safe and environmentally sound decommissioning of wells. Additionally, the rise of renewable energy is influencing the market by shifting focus towards cleaner and more sustainable energy sources, which could potentially impact the demand for traditional oil and gas services in the long term. 

What will the Size of the Market be During the Forecast Period?

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

Market Segmentation

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. 

By Application

The market share growth by the Offshore segment will be significant during the forecast period. In 2022, the 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 2.29 billion in 2017. 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 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.

By Region

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 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 in the region. Many oil and gas wells are likely to be decommissioned during the forecast period.

Market Dynamics

The market is driven by the need to seal oil wells that have reached the end of their productive life, ensuring permanent seal to minimize liability for companies. This process involves decommissioning matured oil & gas platforms and subsea infrastructures, reducing ongoing costs, and guarding against potential liabilities and legal obligations. With technological advancements, companies now employ well-abandonment services using ringless good abandonment techniques like Xclude (reservoir) and Aubin's method, which are more efficient than traditional rig-based methods. These services are crucial for managing abandoned oil and gas wells, supporting remediation, and meeting regulatory requirements such as those set by the California Geologic Energy Management Division (CalGEM) and ensuring the integrity of the UK's electricity infrastructure as regulated by Offshore Energies UK (OEUK). 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.

Key Market Driver

Maturing oil and gas fields are a key factor driving the global market growth. The need for the abandonment of oil and gas fields is primarily due to the decline in the production of crude oil or natural gas from the producing well as it reaches the end of its economic life. When production declines to a level where the well's operational expenses exceed the revenue generated through the sale of crude oil or natural gas, the well becomes a liability for operators. This situation necessitates the need for permanent sealing of the well to prevent any further environmental or safety issues. Operators are then faced with the decision to decommission the well, which involves various stages such as platform preparation, well plugging and abandonment, conductor removal, mobilization/demobilization, and platform removal. The decommissioning of matured oil & gas platforms and subsea infrastructures is crucial to avoid ongoing costs and potential liabilities. It is also a legal obligation for companies to ensure that these facilities are properly decommissioned and guarded against any environmental harm. As abandonment is part of the well decommissioning process, the increase in the number of aging oil fields is likely to drive the growth of the global market for well decommissioning during the forecast period.

Major Market Trend

Technological advances in well abandonment techniques will fuel the global 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 applies 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 market during the forecast period.

Significant Market Challenge

The high costs associated with well abandonment projects are a major challenge to the global 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 with 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 market during the forecast period.

Key Market Customer Landscape

Our analysis of the Life Cycle of the Global market is from the innovator’s stage to the laggard’s stage. The report illustrates the lifecycle of the global 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 Market Customer Landscape

Who are the Major Well Abandonment Services Market Companies?                                     

Companies 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 Group Ltd.- 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 companies, 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 companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak. 

Market Analyst Overview

The market is witnessing significant growth as the global oil and gas industry focuses on environmental sustainability and responsibly decommissioning obsolete oil & gas reservoirs. With increasing concerns over environmental impact and the need for well integrity and safety, the demand for permanent well abandonment services is on the rise. This market is crucial for ensuring that offshore oil and gas platforms and onshore wells are properly sealed in an environmentally responsible manner. Skilled personnel and specialized services are essential for the safe and effective decommissioning of wells, making this market a key player in the transition to green energy sources and the development of emerging markets.

The market plays a critical role in the oil & gas production sector, particularly in addressing the challenges posed by obsolete oil and gas wells. As global energy demand continues to rise, there is increasing pressure to decommission these wells in an environmentally responsible manner. This market is particularly important for developing countries where oil and gas exploration activities are prevalent, as it helps manage fossil fuels and ensures proper revenue generation. However, capital investment costs and access to resources remain significant challenges, especially in regions where hydraulic fracturing is common. Nonetheless, the market for well abandonment services is expected to grow, driven by the need for decommissioning services for both temporarily abandoned well services and shut-in well services.

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 
  • Offshore
  • Onshore 

• Type Outlook 
  • Permanent
  • Temporary

• Region Outlook 
  • 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	USD 1.52 billion
  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 forecasting, 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 market research 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 Market Report?

  • CAGR of the market during the forecast period
  • Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
  • Precise estimation of the size of the market size and its contribution to the parent market
  • Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
  • Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
  • Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
  • Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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

 

•