Several hundred offshore oil and gas wells could cease production by 2021 in the face of today’s bearish oil market. As a consequence, so-called decommissioning obligations in the global oil and gas industry rose to $11.7 billion last year and are projected to hold steady at an average of about $12 billion per year from 2019 through 2021, according to Rystad Energy. “2018 was an all-time high, and the next years are set to break this record,” said Rystad Energy partner Audun Martinsen. “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.” (Click to enlarge) A challenging oil market outlook has put many ageing fields to rest as diminishing output proved insufficient to cover production costs. A Rystad Energy review of offshore assets […]