Current Offshore Decommissioning Trends
The current oil price collapse potentially accelerates a looming wave of offshore oil and gas field decommissioning activities, as more fields may struggle to be economic under existing market conditions.
Recent IHS Markit analysis indicates that technology and broader forms of innovation can significantly reduce decommissioning costs. Yet, this same analysis reveals a consistently low industry prioritization placed on decommissioning-related technology development — a contradiction that needs to be resolved.
This IHS Markit webinar explored current offshore decommissioning trends, the technology landscape and its potential to reduce decommissioning costs, and the efforts necessary to achieve benefits on an industrywide scale.
Use the Watch Now button in the banner to access this on-demand webinar.
Cost to Attend: $100 USD
The ON24 specifications can be found here:
Key findings included:
- A large bill coming due: IHS Markit analysis
shows global offshore decommissioning costs reaching nearly $180
billion over 2020-40, with a $12 billion annual peak originally
projected in 2036-37. With recent industry developments,
decommissioning activities appear to be accelerating, pulling costs
forward and making efficiency gains even more relevant.
- A range of technology-enabled cost reduction
opportunities: While the focus to date has been on
business improvement, new technologies and innovative practices
(e.g., well plugging and abandoning techniques, (infra)structure
removal) show the greatest cost reduction potential.
Decommissioning can further benefit from digitalization-enabled
efficiency initiatives introduced following the 2014-15 oil price
- Significant benefits available: Technology-enabled cost reductions may range up to 38%, with further benefits possible through digitalization-driven efficiency increases.