Global decommissioning costs are set to hit a record $36 billion over the next three years, according to Rystad Energy.
The BOP Blow Out Preventer repair company gulf coast projects decommissioning obligations in the global oil and gas sector to come in at an average of about $12 billion per year from 2019 to 2021, with the bulk of the spend stemming from Europe and Asia.
Global decommissioning costs were $11.7 billion in 2018, $5.5 billion in 2017 and $6.9 billion in 2016, according to Rystad Energy.
“2018 was an all-time high, and the next years are set to break this record,” Rystad Energy Partner Audun Martinsen said in a BOP Blow Out Preventer repair company gulf coast statement.
“To put this into context, the global oil and gas industry is facing total decommissioning obligations in the magnitude of six Johan Castberg field development projects in the Barents Sea within the next three years,” Martinsen added.
According to a report from Wood Mackenzie (WoodMac) back in July last year, up to over the next decade.
The report, which stated that WoodMac expects $32 billion to be spent on decommissioning around the world between 2018 and 2022, said the top three largest decommissioning spenders in the next ten years would be the UK, the United States and Norway, respectively. The report said the UK will spend almost $30 billion on decommissioning in the next 10 years.
According to a report from industry body Oil & Gas UK released in November, the over the next decade.
“As the decommissioning sector matures, we’re becoming more efficient and our growing expertise is enabling us to plan projects more cost-effectively,” Joe Leask, decommissioning manager at Oil & Gas UK, and author of the report, said in an organization statement at the time.