Decommissioning Insight 2019

4. The UK’s Role in a Global Market In Summary

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In the UK Government’s Budget 2018, the Chancellor issued a ‘call for evidence’ on how to establish the UK as a global hub for decommissioning. BEIS launched this consultation earlier this year and OGUK worked with members to form an industry response. 10 This response incorporated a wealth of industry experience that reflects both operator and supply chain perspectives, and OGUK’s decommissioning forum (representing 200+ companies across the UK) actively contributed to the submission, providing insightful perspective on how the UK can make the most of its decommissioning capabilities. Wood Mackenzie estimates that $85 billion (£67 billion) will be spent globally on decommissioning over the next ten years. The UK is expected to be the largest contributor, accounting for 28 per cent of overall global expenditure.

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Figure 10: Global Decommissioning Expenditure 2019, to 2028

The Rest of the World 8%

Malaysia 2%

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Denmark 3% Vietnam 2%

United Kingdom 28%

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Australia 3%

Netherlands 3%

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Indonesia 3%

China 3%

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Nigeria 3%

Angola 4%

United States 13%

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Thailand 5%

Norway 9%

Brazil 11%

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Source: Wood Mackenzie

Entering the decommissioning market earlier than other countries provides a huge opportunity to lead the global market. This needs to be supported by careful planning, capability development and appropriate investment in the right areas across the UK’s supply chain.

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10 oilandgasuk.co.uk/wp-content/uploads/2019/09/OGUK-Decommissioning-Call-for-Evidence-Response.pdf

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