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Global decommissioning anxiety rises

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08 July 2021

Global decommissioning anxiety rises

Report summary

The wave of global offshore decommissioning expenditure (decommex) is rising. Hundreds of offshore facilities have already ceased production but are yet to be decommissioned. By 2030, total decommex will exceed US$15 billion a year (based on our Lens data). Between 2021 and 2050 we estimate US$400 billion will need to be spent. And an accelerated energy transition could turn the wave into a tsunami.

Table of contents

  • Executive summary
  • Decommex: the wave is rising
  • Decommex: liabilities and the risk of default
  • Decommex: a fair solution to the funding problem
  • Decommex: the way forward
  • Appendix: estimate of US onshore decommex

Tables and charts

This report includes 6 images and tables including:

  • Global offshore decommex, 2010-2050
  • Global offshore decommex 2021-2050: drivers for delay and acceleration
  • US state bond requirements (for a single well at 4,000 ft)
  • Fiscal treatment of decommissioning funds in modern systems
  • Decommex funds vs end of life payments
  • Estimated decommex for land restoration of all US oil and gas wells

What's included

This report contains:

  • Document

    Global decommissioning anxiety rises

    PDF 887.96 KB