Towards the end of 2024, The North Sea Transition Authority (NSTA) emphasized the need for the oil and gas industry to maintain a sharp focus on fundamentals - safety, emissions cuts, timely decommissioning and greater diversity - to navigate the energy transition successfully*.

But the scale of the decommissioning challenge is enormous. According to OEUK’s Offshore Decommissioning Report 2024; over 2,000 wells, 914,000 tons of topsides and 508,000 tons of substructures are scheduled for removal, with projected expenditures reaching £24.6 billion by 2033.

And that’s just the UK’s offshore energy industry. The global challenge is equally significant. Norway and the Gulf of Mexico in particular paint an overwhelming picture. Legacy wells, some dating back to the 1960s, remain idle or leaking due to ownership loopholes, illustrating the consequences of delayed action.

And legacy infrastructure is stacking up quickly. On the Norwegian shelf, many more facilities are approaching the end of their lifetime. In the Gulf of Mexico, as of 2023, 2,700 wells and 500 platforms were overdue for decommissioning and considered delinquent.

I know that nobody wants to spend money on decommissioning. Cleaning up after operations isn’t profitable, but it is a matter of responsibility and reputation. Proper decommissioning and cessation planning are essential areas that deserve more serious attention, both for environmental responsibility and operational efficiency.

The time to act is now. Because as the energy transition moves forward, the standards we hold ourselves to for decommissioning will only become more visible. 

Setting the standard for renewables

By 2030, 78 GW of wind turbines in Europe alone will reach the end of their design life*. Both land-based and offshore sites are likely to encounter even greater scrutiny thanks to their visibility. Close to / on shore, ingrained in the public consciousness, and just generally tall, moving and noticeable; neglected end of life assets in wind could have a hugely detrimental impact on operator reputation - and the energy transition itself.

The environmental and reputational stakes are massive. Operators who fail to decommission responsibly risk broader social acceptance for clean energy, higher costs for future projects, potential future permitting barriers and lost investor, governmental and public trust.

Responsible end-of-life planning and clear decommissioning strategies are critical for long-term industry sustainability.

So how do we ensure operators get the most value from decommissioning? And make it a more attractive proposition? For the good of the operator, the industry, and the environment as a whole.  

Planning for decommissioning

I believe the key to smoother, more efficient and optimally environmentally-sound decommissioning can be found in taking a strategic, full-lifecycle approach. Considering end of life early, and putting systems in place to support this final phase.  

There’s a significant opportunity to digitize decommissioning. To inform and streamline both disposal and impact assessment. Digital tools can help operators rise to these challenges. By integrating environmental, operational and financial data, they let companies plan, justify and monitor decommissioning decisions more effectively - and be better prepared when asked about what end of life might look like.

Efficiencies in planning could reduce costs while considering environmental impact and regulatory requirements. Using point clouds - 3D laser scans of the seabed - and uploading into a digital field twin with a fourth dimension of time allows detailed modelling of decommissioning sequences. This approach can identify scenarios like rig-less interventions, reducing investment when compared to costly rig operations. 

Final Thoughts

Ultimately, decommissioning is more than a regulatory requirement. It’s an opportunity to demonstrate environmental stewardship and operational excellence. Leveraging digital tools to build decommissioning into a project from its very inception can reduce costs, minimize environmental impact and enhance corporate reputation.

By working to improve subsea oil and gas decommissioning now, we can ensure that the next generation of renewable - and visible - assets are retired responsibly, safely and efficiently, setting a benchmark for a better future.