The global well abandonment services market size is expected to reach USD 2,280.87 million by 2030, according to a new study by Polaris Market Research. The report “Well Abandonment Services Market Share, Size, Trends, Industry Analysis Report, By Application (Offshore, Onshore); By Type; By Region; Segment Forecast, 2023-2032” gives a detailed insight into current market dynamics and provides analysis on future market growth.
The shift towards renewable energy sources, such as wind and solar power, has created a need for energy storage solutions to ensure a stable and reliable energy supply. This has led to increased investment in battery energy storage, driving the growth. Well, abandonment services are essential in decommissioning oil and gas wells, which is necessary for developing renewable energy. Spending on several emerging technologies, including batteries, low-emission hydrogen, and carbon capture, utilization, and storage, is expanding significantly from a low base. In 2022, spending on battery energy storage is anticipated to more than double, reaching close to USD 20 billion, according to the International Energy Agency. This will further propel the growth.
The governor's budget suggests allocating USD 200 million in General Funds over two years (2022-23 & 2023-24) to the California Geologic Energy Management Division (CalGEM) of the Department of Conservation (DOC) to plug abandoned wells and decommission-related equipment. Despite the potential benefits to the environment, human health, and safety of treating abandoned wells, this plan would significantly expand the scope of current well remediation efforts. Federal funds will also soon be accessible for well-remediation activities. This will further create a wide range of opportunities for market growth in the coming years.
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The countries' increased budget for environmental sustainability is driving the market's growth. The US announces funding of USD 1.1 billion to repair abandoned oil & gas wells in 2022. United States' action plan to reduce methane emissions will benefit from plugging abandoned wells. The financing is a component of US President Biden's Bipartisan Infrastructure Law, which allotted USD 4.7 billion to assist in cleaning up abandoned oil and gas wells that contaminate recreation areas, backyards, & public spaces around the nation. This will fuel the growth of the market in the forecast period.
ell Abandonment Services Market Report Highlights
Polaris Market Research has segmented the well abandonment services market report based on application, type, and region:
Well Abandonment Services, Application Outlook (Revenue - USD Million, 2019 - 2032)
Well Abandonment Services, Type Outlook (Revenue - USD Million, 2019 - 2032)
Well Abandonment Services, Regional Outlook (Revenue - USD Million, 2019 - 2032)