Well Abandonment Services Market Size & Share, by Type (Temporarily Abandoned, Shut In); Application (Offshore, Onshore); Service (Site Clearance, Materials Disposal, Well Plugging Abandonment, Permitting Regulatory Compliance, Pipeline Power Cable Decommissioning); Removal Type (Leave In Place, Partial Removal, Complete Removal); Depth (Shallow & Deep Water); Structure (Topside, Substructure, Sub Infrastructure) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 5568
  • Published Date: Jan 23, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024-2036

Well Abandonment Services Market size is expected to reach USD 5 Billion by the end of 2036, growing at a CAGR of 5% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of well abandonment services was USD 1.6 Billion. The primary reason that will drive the market of well abandonment services is the increasing consumption of energy worldwide. In fact, international energy demand increased by 2.9% in 2018 and in a business-as-usual case, by 2040 international energy consumption will touch 740 million terajoules - similar to an extra 30 percent expansion. International energy consumption signifies the combined energy utilization of all households and industry sectors. Differences between countries typically show differing income levels, varying attitudes and utilization of effectiveness measures, the kinds of fuels used, and the climate zones occupied.

Another reason behind the growth of the well abandonment services market is the increasing production of clean energy across the world. The implementation using renewables for electricity production, heat generation for buildings and industry, and transport is one of the primary enablers of holding the average international temperature increase below 1.5°C. Modern bioenergy is recently the biggest source of renewable energy internationally, with a more than 50% share of international implementation in 2022. Bioenergy is discussed independently, and this era is devoted to other renewable technologies. Current development has been encouraging, and 2022 was a record year for renewable electricity potential additions, with yearly potential additions attributing to about 340 GW. Key strategies declared in 2022, primarily REPowerEU in the European Union, the Inflation Reduction Act (IRA) in the United States, and China’s 14th Five-Year Strategy for Renewable Energy, will impart further support to accentuate renewable electricity utilization in the coming years.


Well Abandonment Services Market
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Well Abandonment Services Market: Key Insights

Base Year

2023

Forecast Year

2036

CAGR

∼5%

Base Year Market Size (2023)

~USD 1.6 Billion

Forecast Year Market Size (2036)

~USD 5 Billion

Regional Scope

  • North America (North America, Canada, Mexico)
  • Europe (Germany, Spain, UK, France, Italy, Russia, Others)
  • Asia Pacific (Japan, China, India, Australia, Others)
  • Middle East and Africa (South Africa, UAE, Others)
  • Latin America (Brazil, Argentina, Others)
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Well Abandonment Services Market: Growth Factors and Challenges

Market-Growth-Drivers

Growth Factors

  • The Inclination of People Toward Clean Energy Cultivation - On 24th October 2023, the International Energy Agency (IEA)’s yearly World Energy Outlook witnessed the “phenomenal” increase of clean energy technologies such as solar, wind, electric cars, oil and gas wells, and heat pumps are on track to reorganize how people power everything from homes to vehicles and industries. By 2030, ten times as many electric cars could be on the road across the world, solar power could produce more electricity than the whole US system recently does and renewables could make up 50 percent of the international energy mix. Since 2020, investment in clean energy has increased by 40 percent. This acceleration is pushed not just by the drive to bring down carbon secretions, as stated by the IEA. Economic factors along with the need to develop green jobs and a demand for energy protection are raising the push.
  • Industries Depend More on Oil and Gas Energy - The availability of cost-effective and dependable energy is a necessity for modified industrial efficiency and the ability to compete and therefore a critical component in economic modification. The transformation to a low-carbon economy, and an unavoidable choice to limit climate change will go on to cause drastic falls in the requirement for fossil fuels, leading to the removal and stranding of assets in fossil fuel-generating countries. For instance, it is calculated that Africa will have to relinquish burning almost 90 percent of its coal reserves, 34 percent of its gas, and 26 percent of its oil to accomplish the international temperature aim of the Paris Deal.
  • Increasing Advancement in Technologies - Deep casing tools is all set to bring its casing cement breaker equipment to well abandonment services market , tracking a successful trial with Norwegian energy multinational Equinor. Moreover, Weatherford has created a full suite of plug-and-abandonment (P&A) gadgets and services to securely and effectively abandon aging wells. While P&A activities were conventionally executed from traditional drilling rigs or hydraulic workover units, the unified well abandonment presentation is pliable and modular sufficient to be utilized from a range of service vessels, comprising lower-cost commercial vessels.

Challenges

  • High Cost of Well Abandonment Services - An increasing number of orphaned and abandoned wells in the US is increasing costlier daily, challenging an oil and gas industry that is already bargaining the energy transition apart from fossil fuels, in line with the critics, who are calling for amendments and new funding to wipe up long-dormant, corroding sites. The price to plug an orphaned well differentiates depending on its age, depth, and place. In North Dakota, where some wells are drilled to pits of more than 20,000 feet, it can cost USD 150,000 to plug a single well and revive the land around it. In Pennsylvania, the state costs about USD 33,000 to plug each well. In Colorado, state regulators invested USD 14.4 million over three years to plug and recover wells after operators had put away only USD 1.3 million, in line with the Western Organization of Resource Councils, a network of grassroots groups concentrated on land stewardship.
  • Shortage of Skilled Technicians
  • Release of Chemicals


Well Abandonment Services Segmentation

Application (Offshore, Onshore)

The offshore segment is expected to hold 68% share of the global well abandonment services market by 2036. This market growth will be noticed because of the increasing number of offshore projects across the world. For instance, in the Gulf of Mexico, as QuarterNorth works and holds a 50% working profit in the Katmai discovery in the Green Canyon region, generating a calculated mixed 27 mboe/d gross from two early-life wells. Talos anticipates this area to generate over 34 mboe/d gross on average with nominal reduction over the next multiple years depended on a successful area modification plan, comprising two future well locations and a facilities promote project in early 2025. Again, EU countries have approved new, aspiring permanent objectives for the utilization of offshore renewable energy capable of 2050 in each of the EU’s five sea basins, with intermediate targets to be accomplished by 2030 and 2040.

Depth (Shallow Water, Deep Water)

The deep water segment in the well abandonment services market is estimated to account for 71% of the revenue share during the forecast period. As deepwater drilling for gas and oil wells is taking place worldwide, it will directly drive the well abandonment services market to grow. For instance, the drilling project in Southern Africa encircles three wells jointly, two in Angola – Blocks 32 and 48 – and one in Namibia. Action at the sites was reportedly initiated in January and continued for 240 days. The existing deepwater oil reserves in the globe are mostly spread across the Atlantic deepwater basins of Brazil, the Gulf of Mexico, and West African deepwater areas these places thus require a lot of well abandonment services.

Our in-depth analysis of the global well abandonment services market includes the following segments:

           Types

  • Temporarily Abandoned
  • Shut In

           Application

  • Offshore
  • Onshore

           Services

  • Site Clearance
  • Materials Disposal
  • Well Plugging Abandonment
  • Permitting Regulatory Compliance Pipeline Power Cable Decommissioning

          Removal Type

  • Leave in Place
  • Partial Removal
  • Complete Removal

           Depth

  • Shallow Water
  • Deep Water

          Structure

  • Topside
  • Substructure
  • Sub Infrastructure

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Well Abandonment Services Industry - Regional Synopsis

North American Market Analysis

The North America well abandonment services market is projected to hold 47% of the revenue share during the forecast period. This growth will be attributed to this region's increased gas and oil exploration. The US is projected to take out an all-time high of 12.9 million barrels of crude oil this year, more than twice its total a decade earlier. American natural gas generation will also hit a new record in 2023, the Guardian notes, whereas exports of liquefied natural gas (LNG) will be two-fold through 2027. Encouraged by the shale revolution and taken by Texas, US oil generation increased from 5.5 million b/d in 2010 to a record height of approximately 13 million b/d at the start of 2020, although output has since reduced to about 11.3 million b/d. Moreover, that increase in expansion has not come without cyclical stops and begins, comprising busts in 2014 and 2020 and the continuing coronavirus epidemic.

European Market Forecast

The well abandonment services market in the Europe region will increase massively by the end of 2036 and will hold the second-largest revenue share. This increase will be noticed because this region is home to many oil and gas wells. The contribution of oil and gas energy sources continued to rise. Renewables in the Europe country already exceeded solid fossil fuels in 2018 and 2019 and acquired further ground in 2020 and 2021. Solid fossil fuels rose by 15.7 % in 2021, partly recovering after the lowest worth ever received in 2020. 

Research Nester
Well Abandonment Services Market Size
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Companies Dominating the Well Abandonment Services Market

top-features-companies
    • A&T Well and Pump
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • A Plus Well Service Inc.
    • Acona AS
    • AGR Holdco Ltd.
    • BiSN Oil Tools Ltd.
    • Calfrac Well Services Ltd.
    • Coretrax Ltd.
    • Dan Wood Co.
    • Expro Group Holdings NV
    • Halliburton Co.
    • Weatherford International

In-the-news

In The News

 

  • December 6, 2023: BiSN Oil Tools Ltd., a leading provider of long-time downhole sealing solutions, has launched a new manufacturing faculty in Perth, Western Australia to better assist operators in the region. The faculty will drastically raise the operational potential for BiSN in the Asia-Pacific region, developing multiple local jobs. Situated in Perth, the new faculty shows a significant investment in infrastructure and talent. BiSN’s growth in Australia is pushed by the increasing requirement for Wel-lok™ technology in the region, which gives affordable, trustworthy, and eco-friendly sealing solutions for the oil and gas industry.
  • June 7, 2023: BiSN Oil Tools Ltd. has fulfilled the first stage of a multi-year project in the North Sea in support of a major oil and gas operator. To accomplish this, BiSN implemented its proprietary Wel-lok alloy barrier technology to securely and effectively plug and abandon six oil and gas wells in the North Sea. As an outcome of this three-year deal award, which characteristics two one-year expansions, BiSN delivered this operator with Wel-lok alloy plugs for its continuing offshore UK P&A project in the North Sea. To give long-term well-barriers and gas-tight seals in single and numerous annuli contexts, BiSN utilized its patented Wel-lok Seal Through Casing (STC) gadget.

Author Credits:  Payel Roy, Dhruv Bhatia


  • Report ID: 5568
  • Published Date: Jan 23, 2024
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

The increasing number of abandoned wells across the world will majorly drive the market growth of the well abandonment services market.

The market size of the well abandonment services market is expected to get a CAGR of approximately 5% over the forecast period, i.e., 2024-2036.

The major players in the market are A&T Well and Pump, A Plus Well Service Inc., Acona AS, AGR Holdco Ltd., BiSN Oil Tools Ltd., Calfrac Well Services Ltd., Coretrax Ltd., Dan Wood Co., Expro Group Holdings NV, Halliburton Co., Weatherford International, Japan Oil Development Co., Ltd., Japan Petroleum Exploration Co., Ltd., Air Liquide Japan G.K., Inpex Corporation.

The offshore segment is anticipated to reap the largest market size with almost 68% by the end of 2036 and demonstrate substantial growth scopes.

The market in the North American region is expected to have the largest market share by the end of 2036 and provide more business opportunities in the future.
Well Abandonment Services Market Report Scope
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