NEW
YORK, June 19, 2024 /PRNewswire/ -- The global
well abandonment services market size is estimated to grow by
USD 1.18 billion from 2024-2028,
according to Technavio. The market is estimated to grow at a CAGR
of over 4.88% during the forecast
period. Maturing oil and gas fields is driving
market growth, with a trend towards technological
advances in well abandonment techniques. However, high costs
associated with well abandonment projects poses a challenge.
Key market players include A and 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 and 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..
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Forecast
period
|
2024-2028
|
Base Year
|
2023
|
Historic
Data
|
2018 - 2022
|
Segment
Covered
|
Application (Offshore
and Onshore), Type (Permanent and Temporary), and Geography
(Europe, North America, Middle East and Africa, APAC, and South
America)
|
Region
Covered
|
Europe, North America,
Middle East and Africa, APAC, and South America
|
Key companies
profiled
|
A and 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 and
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.
|
Key Market Trends Fueling Growth
The well abandonment services market is experiencing growth due
to the increasing importance of decommissioning in the oil and gas
industry. Companies are investing in technologies to reduce costs
and time for these operations, particularly in offshore regions.
Three methods for well abandonment are commonly used: rig, coiled
tubing, and rigless. Rig-based methods are costly but effective,
while coiled tubing methods are specialized and expensive. Rigless
abandonment, which does not require a rig, is cost-effective and
applicable to various oil wells. Technological innovations in
abandonment techniques are driving market growth by simplifying and
streamlining the process, reducing costs, and improving project
efficiencies.
The Orphaned and Old Well Services market is experiencing
significant growth due to the increasing demand for cost-effective
energy solutions. The industry involves the reactivation, plug and
abandonment, and decommissioning of wells. Recent trends include
the use of innovative technologies such as subsea systems and
remote operations to reduce costs and improve efficiency. The cost
pressures are driving the adoption of new methods like infill
drilling and extended reach drilling to maximize production from
existing wells. Additionally, regulatory requirements and
environmental concerns are pushing companies towards responsible
decommissioning practices. Overall, the market is expected to
continue its upward trend as the global energy industry shifts
towards sustainable and cost-effective solutions.
Research report provides comprehensive data on
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Report
Market Challenges
• The global
Well Abandonment Services Market is experiencing significant growth
due to the increasing number of mature wells that require
decommissioning. These wells, considered non-performing assets,
have operating costs exceeding revenue generated from crude oil or
natural gas. Well abandonment costs vary greatly, influenced by
factors such as material changes, risks, personnel loss, market
volatility, and industry experience. Offshore projects incur higher
costs due to the removal of equipment. P and A accounts for
approximately half of the total decommissioning costs, with the
UKCS projecting an average expenditure of USD8-12 million per well. The high costs
associated with well abandonment may impact market growth during
the forecast period.
• The Well
Abandonment Services market faces several challenges. One key
challenge is the cost of decommissioning older wells, which can be
substantial. Another challenge is the complexity of the process,
requiring specialized knowledge and equipment. Regulations also
play a role, with different jurisdictions having varying
requirements. Additionally, the remote locations of many wells can
make logistics and access difficult. Furthermore, the need to
ensure safety and minimize environmental impact adds to the
complexity. Lastly, the cost of inactivity, such as lost revenue
and potential environmental damage, can make the decision to
abandon a well a difficult one.
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challenges - Download a Sample Report
Segment Overview
This well abandonment services market report extensively covers
market segmentation by
- Application
- Type
- 2.1 Permanent
- 2.2 Temporary
- Geography
- 3.1 Europe
- 3.2 North America
- 3.3 Middle East and
Africa
- 3.4 APAC
- 3.5 South America
1.1 Offshore- The Well Abandonment Services
Market involves the decommissioning of oil and gas wells. This
process ensures safety, reduces environmental risks, and recovers
remaining resources. Service providers offer solutions such as
plugging, abandonment, and site restoration. These services are
essential for companies seeking to exit operations or comply with
regulations. The market's growth is driven by increasing oil and
gas production and stricter environmental regulations.
For more information on market segmentation with geographical
analysis including forecast (2024-2028) and historic data (2018 -
2022) - Download a Sample Report
Research Analysis
The Well Abandonment Services Market encompasses the provision
of expertise and technologies for the decommissioning of oil and
gas wells, including abandoned oil wells and oil & gas
platforms. This market is gaining significance in the context of
increasing international energy demand and the shift towards
renewable energy sources, such as solar power and bioenergy. The
decommissioning process involves managing ongoing costs, legal
obligations, and ensuring productivity while adhering to
environmental regulations. This includes the liability of abandoned
wells, as well as the decommissioning of subsea infrastructures and
oil & gas platforms. New technologies, such as real-time
monitoring and control systems, are being employed to optimize the
decommissioning process and minimize the impact on oil reserves and
skilled personnel. The International Energy Agency's REPowerEU
initiative and the Inflation Reduction Act are driving the market
forward, with a focus on reducing greenhouse gas emissions and
transitioning to clean energy.
Market Research Overview
The Engy ConsumpTION Renewable Energy Newgy Demand Clean energy
Onghoing projects Power renewable Electricity generation Legacy
wind farms Energy transition Electricity market Shale gas Wind
turbines Fossil fuels Utility-scale projects Offshore wind
Subsidies Technological advancements Decommissioning Repowering
Electrical infrastructure Cost-effective Sustainability Oil and gas
industry Deregulation Government policies Carbon emissions
Reductive technologies Waste heat recovery Thermal energy Storage
Capacity utilization Well abandonment The global market for Well
Abandonment Services is witnessing significant growth due to the
increasing focus on renewable energy sources and the energy
transition. The decommissioning and repowering of legacy wind farms
and utility-scale projects are driving the demand for these
services. The cost-effective nature of renewable energy, coupled
with technological advancements, is making these sources
increasingly competitive with fossil fuels. The deregulation of the
electricity market and government policies aimed at reducing carbon
emissions are also contributing to the growth of the Well
Abandonment Services market. The oil and gas industry is also
adapting to these trends, with a focus on reducing waste and
improving sustainability through the use of reductive technologies
and the recovery of waste heat and thermal energy. The storage of
capacity and the utilization of well abandonment techniques are
essential components of this transition.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Application
-
- Type
-
- Geography
-
- Europe
- North America
- Middle East And Africa
- APAC
- South America
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory
company. Their research and analysis focuses on emerging market
trends and provides actionable insights to help businesses identify
market opportunities and develop effective strategies to optimize
their market positions.
With over 500 specialized analysts, Technavio's report library
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consists of enterprises of all sizes, including more than 100
Fortune 500 companies. This growing client base relies on
Technavio's comprehensive coverage, extensive research, and
actionable market insights to identify opportunities in existing
and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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SOURCE Technavio