According to the analyst from Verified Market Research, the Gulf of Mexico oil and gas decommissioning market is estimated to reach a valuation of US$43.31bn in 2031
Stricter environmental restrictions have hastened decommissioning activities, with 2,300 non-producing wells scheduled for plugging and abandonment by 2025. The US Department of Interior’s annual report states that environmental compliance expenses for decommissioning grew by 35% between 2020 and 2023, reaching an average of US$2.8mn per platform.
Many Gulf of Mexico operators face enormous financial risks due to their decommissioning obligations. As infrastructure ages and becomes more difficult to destroy, the expected expenditures for decommissioning range from US$40bn to US$70bn. Furthermore, the decommissioning process has inherent environmental dangers, especially if not carried out effectively.
The deepwater segment is estimated to hold the largest market share during the forecast period, with the deepwater Gulf of Mexico showing tremendous untapped resource potential, attracting major investment and interest from operators. Technological developments have increased the efficiency and safety of deepwater operations, making it more economically viable to extract resources from deeper oceans. Subsea engineering and remote monitoring system innovations make decommissioning operations more efficient, lowering costs and timescales. These technological advancements increase the appeal of deepwater projects, resulting in more growth in this segment.
