The expenses of decommissioning oil and gas platforms in the UK’s North Sea might surpass capital investment in the market by 2040, a brand-new report from Offshore Energies UK has actually recommended.
At the minute, decommissioning expenses represent a reasonably little part of oil and gas business’ overall costs. In 2015 saw decommissioning expenses represented some 12% of overall costs in the market. This might increase to 25% in 2032 and keep increasing to leading capital investment by 2040.
Over the next 5 years, more than 1,000 oil and gas wells in the North Sea are set to be plugged, according to the report, which likewise included that this would make up “a significant facilities and labor force obstacle,” per Bloomberg
Over the next 10 years, decommissioning expenses would strike 20 billion pounds, which amounts to a bit over $25 billion. This year alone will see costs on decommissioning leading 2 billion pounds, or $2.5 billion.
” This is a ⤠20 billion service chance for our first-rate decommissioning market, and it is essential it is dealt with correctly so we do not lose the work to abroad rivals,” the author of the report and head of OEUK’s decommissioning system, Ricky Thomson, stated as priced quote by Bloomberg.
In 2026 alone, the OEUK approximates that more than 100,000 lots of oil and gas platforms and foundations would require to be decommissioned. In the very same year, more than 200 overseas wind turbines are anticipated to be set up in the location, producing something of a race for the required heavy devices, and particularly heavy lift vessels, Energy Voice reported, mentioning the OEUK paper.
” We’re going to need to take a look at the supply chain abilities and capability in those locations, both onshore for taking apart, recycle and repurposing, and offshore for setup,” Thomson stated, as priced quote by Energy Voice.
By Charles Kennedy for Oilprice.com
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