Asset Integrity Management (AIM) manages an asset to ensure it can successfully and efficiently execute its purpose. The investigated market encompasses services provided at every stage of the oil and gas life cycle, from conceptualization to engineering and design, construction, operation, inspection, and repair/replacement, guaranteeing that all equipment and associated components have been operating properly. Globally, the asset integrity management services market is anticipated to be driven by the maturation of oil and gas industry assets. The oil and gas industry has utilized its assets, such as offshore platforms, rigs, and pipelines, past their intended lifespan. Most of the assets are anticipated to be re-utilized in the coming years due to the continuing rise in manufacturing demand, propelling the analyzed market.
Growing Assets in the Oil and Gas Industry to Drive the Global Oil and Gas Asset Integrity Management Services Market
Most of the industry's assets, including offshore platforms, rigs, and pipelines, are used beyond their lifespan. With the continuous rise in production demand, it is anticipated that the bulk of the assets will be re-utilized during the projected period. In addition, offshore oil and gas platforms are vulnerable to strong ocean currents, corrosive saline water, and regular hurricanes. In contrast to transportable drilling rigs, platforms cannot be moved to shore for maintenance. Numerous platforms are either ancient or have changed hands multiple times; maintenance data are either missing or untrustworthy.
In addition, the usual lifespan of a pipeline in the oil and gas industry was believed to be between 20 and 40 years. Still, this lifespan has been significantly extended with the current corrosion management. As of 2020, the average age of Gulf of Mexico (GOM) pipelines was 23 years. The average life expectancy will continue to rise as the existing infrastructure is utilized to build new subsea tiebacks. To ensure the safe production of oil and gas from the GOM in the following years, good inspection and maintenance of the aging pipeline system will be of the utmost importance to prevent mishaps or leaks. Consequently, the increasing age of pipeline infrastructure is anticipated to drive market expansion.
Offshore Decommissioning Activities to Provide Opportunities for the Global Oil and Gas Asset Integrity Management Services Market
The Outer Continental Shelf (OCS) of the Gulf of Mexico is one of the world's most developed and mature basins. As of 1 February 2021, there are approximately 3,060 platforms in the GoM OCS region. This region is also home to the world's largest market for decommissioning activities, which is expected to expand during the projection period. The "lower for longer" oil price scenario has increased offshore oil and gas sector asset decommissioning. A substantial quantity of idle iron must be removed from the GoM. Before establishing stringent restrictions like NTL 2010-G05 and NTL 2016-N01, operators would delay the decommissioning of structures by citing their potential usage in well drilling operations or as auxiliary infrastructure. This tendency has resulted in a considerable increase in idle iron, which is currently leading to a surge in the decommissioning of shallow and deep-water assets in the GoM OCS region. During 2021-2030, the United Kingdom Continental Shelf (UKCS) is anticipated to experience decommissioning of about 7,790 kilometers of the pipeline network. In the following years, the rising decommissioning of aging oil and gas pipelines is anticipated to generate substantial demand for pigging, flushing, filling, and capping the pipeline before its ultimate removal or abandonment.
By region, the global oil and gas asset integrity management services market: is segmented into North America, Asia-Pacific, Europe, South America, Middle East & Africa.
North America accounted for the largest market share during the forecast period. The United States has been at the forefront of oil and gas-related operations in the past decade. The country's oil and gas infrastructure is extensive, consisting of oil and gas drilling and production platforms, a significant pipeline network, and complex refineries dispersed around the region. As of 2020, there were 135 operational refineries in the United States, the majority of which are between 50 and 120 years old, with an average age of approximately 40. The number of operating refineries has decreased from 223 in 1985 to 135 in 2020, while their combined capacity has climbed from 15.6 mbpd to 18.6 mbpd. This demonstrates the ongoing development of refinery technologies and the enhanced operational efficiency of U.S. refineries. Maintaining these refineries' operational efficiency and safety is of utmost importance to their operators. In addition, the nation has 224,045 miles of oil pipeline and 1,638,176 miles of gas pipeline as of 2019. Following World War II, consumer demand for natural gas more than doubled, necessitating the installation of approximately half of the existing leading natural gas transmission pipeline network and a substantial amount of the local distribution network. With the transition toward natural gas as a critical energy source in various applications, pipeline mileage is projected to increase in the coming years, consequently boosting the demand for pipeline integrity monitoring services.
Europe is the second largest region. Russia has been a leader in oil and gas-related endeavors in the region. The nation's oil and gas infrastructure consists of oil and gas drilling and production platforms, enormous pipeline networks, and complex refineries dispersed across multiple locations. It is a significant exporter of oil and gas, and its pipeline system is highly developed. Historically, the onshore sector has led the upstream business, but in recent years, the offshore sector has been gaining market share due to declining onshore oil production and maturing oilfields. In addition, Russia has an extensive pipeline network for exporting oil and gas to Europe and other countries, including China. The nation's pipeline infrastructure is subjected to some of the worst weather conditions and requires asset integrity management services to ensure uninterrupted operations. The government is aggressively creating new pipelines to supplement its existing infrastructure and expand its gas exporting capacity and capability, which is anticipated to generate a substantial opportunity for market participants.
Asia-Pacific is the third largest region. China is the largest producer of crude oil and natural gas in the Asia-Pacific area, accounting for approximately 50 and 26 percent of the total production of crude oil and natural gas in the region in 2019. The country's oil and gas infrastructure includes, among other things, drilling rigs, production platforms, refineries, pipelines, and terminals. As of March 2020, the country had approximately 98 crude oil pipelines totaling 25,430 kilometers, 87 refined product pipelines totaling 27,945 kilometers, and more than 73,400 kilometers of natural gas pipelines. Such a vast pipeline network, which comprises both new and ancient pipes, is anticipated to generate substantial demand for AIM services throughout the foreseeable future. In addition to midstream and downstream infrastructure, upstream oil & gas infrastructure, such as onshore and offshore drilling rigs or platforms, is anticipated to drive demand for AIM services in China over the projection period.
The key players in the global oil and gas asset integrity management services market are Aker Solutions ASA, Bureau Veritas SA, Penspen Ltd, Intertek Group PLC, Oceaneering International Inc., Fluor Corporation, Technip FMC, Applus Services SA, ABS Group, ESR Group, GE Digital, Worley Limited, Flyability SA.