Offshore oil and gas facilities do not last forever. When wells run dry or production is no longer profitable, companies face the task of decommissioning. This complex process involves retiring old structures, sealing wells, and restoring marine environments. In recent years, decommissioning work has grown worldwide due to aging infrastructures and stricter environmental regulations. While decommissioning is vital for safety and environmental protection, it also raises concerns about worker safety.
Below is an in-depth look at offshore decommissioning, how it is funded, and the specific risks that workers face as more wells and platforms reach the end of their operating lives.
Offshore decommissioning refers to the series of steps taken to retire old oil and gas infrastructure at sea. This process can involve plugging and abandoning wells, removing topside equipment, dismantling platform structures, and disposing or repurposing materials. According to the U.S. Bureau of Safety and Environmental Enforcement (BSEE), decommissioning must meet strict guidelines to ensure that unproductive wells are properly sealed, preventing leaks that could harm marine life orimpact water quality.
Decommissioning can be broken down into phases. First, companies must study and plan on how best to seal wells, remove pipelines, and possibly reuse platform components. Next, divers and specialized crews work on plugging wells with cement, making sure no hydrocarbons can escape into the sea. Afterward, structures such as platform decks or jackets may be taken apart and sent to shore for recycling or safe disposal. Alternatively, some platforms are modified into artificial reefs if certain criteria are met. The ultimate goal is to reduce environmental impacts and clear navigational hazards.
Several factors have contributed to a global increase in offshore decommissioning. One is the age of many offshore rigs, especially in mature regions like the Gulf of Mexico and the North Sea. When a well’s production falls below profitable levels, operators often determine that keeping it running is no longer worth the cost.
Government regulation is another factor. Countries like the United Kingdom have introduced stricter guidelines under the Offshore Petroleum Regulator for Environment and Decommissioning (OPRED), requiring prompt and thorough decommissioning of out-of-use wells. In the United States, the BSEE enforces regulations that compel owners to remove infrastructure once a lease is terminated or production stops for an extended period. Additionally, low oil prices in some years have made older fields less cost-effective to operate, prompting companies to decommission sooner rather than later.
According to the Bureau of Ocean Energy Management (BOEM), about 32,000 abandoned and orphaned wells are scattered across the Outer Continental Shelf.
In most cases, the operator of the well or platform is responsible for bearing the costs of decommissioning. The legal duty usually falls on the leaseholder or the company that received the original license to drill. Depending on the jurisdiction, government agencies may hold former owners accountable if the current operator fails to complete the process. For example, in the Gulf of Mexico, the U.S. government can trace back through the chain of title to ensure at least one responsible party funds proper closure of a site.
The financial burden of decommissioning can be significant. Studies by industry analysts estimate that offshore decommissioning in the North Sea alone could cost over $60 billion in the coming decades. In the Gulf of Mexico, similar projections run into the tens of billions of dollars. Because of these high costs, some companies set aside decommissioning funds as part of their business plans, while others purchase bonds or insurance to cover the eventual expense.
Decommissioning involves a diverse team of professionals. Engineers design the removal or dismantling strategy, while project managers oversee scheduling and logistics. Divers and remotely operated vehicle (ROV) operators may be deployed to inspect underwater components or handle well-plugging tasks. Skilled trade workers, such as welders, crane operators, and pipefitters, dismantle topsides and cut through steel platform legs. Environmental specialists also play a vital part, checking for potential leaks or spills and ensuring that sensitive habitats remain undisturbed.
The workforce can come from different employment backgrounds, including full-time employees of an oil company, third-party contractors hired for specialized tasks, and maritime crew handling vessel support. All of these workers must coordinate closely to ensure safety. Because most decommissioning jobs involve older equipment—often past its original design life—the work can be particularly challenging.
Dismantling and decommissioning offshore structures presents unique hazards. One primary issue is the degradation of equipment. Metal components might be corroded, bolts could be weakened, and protective coatings may have worn off. If a rusted section of a platform fails during cutting or lifting, it can cause falling debris or a structural collapse.
Another risk is exposure to hazardous substances left behind in valves, pipes, or tanks. Even after a platform stops producing, trace amounts of oil, gas, or chemicals can remain in the system. Workers may need to remove or dispose of residues that can emit toxic fumes or create flammable situations. The presence of hydrogen sulfide (H2S) gas, which can be deadly in high concentrations, is also a concern in certain wells.
Weather and sea conditions add more complexity. Decommissioning can involve heavy lifts at sea, often with large cranes on barges or specialized decommissioning vessels. High winds, waves, or sudden storms can disrupt these operations. A single mishap when detaching a platform module or lowering equipment to a supply boat can lead to collisions, dropped loads, or injuries.
In many cases, decommissioning tasks also rely on divers or remotely operated vehicles to seal wells or cut pipelines beneath the seafloor. Underwater work brings its own dangers, including decompression sickness, strong currents, limited visibility, and entanglement in cables or debris. Diving operations must follow strict safety protocols to reduce the risk of injury or fatalities.
Time pressure can be another factor. Companies want to finish decommissioning as quickly as possible to reduce costs. They may attempt to push crews to work long shifts or cut corners, increasing the chance of accidents. Proper training, routine safety briefings, and regular inspections are critical.
While offshore drilling and production are inherently risky, some experts argue that decommissioning carries its own unique set of dangers. During normal production, platforms are designed to manage known flows of oil or gas, and equipment is regularly maintained to prevent downtime. By contrast, decommissioning involves dismantling systems that may be well past their prime. Workers must handle unpredictable conditions, such as hidden corrosion, trapped chemicals, or unstable structures. Because tasks like underwater cutting, heavy lifting, and well plugging are all done in a short time frame, the risk profile can be higher compared to standard operations, where procedures are more routine.
As many offshore fields reach the end of their economic life, decommissioning is set to become an even larger part of the oil and gas industry. Regulatory bodies around the world are tightening rules to avoid leaving orphaned wells (wells with no owner) or abandoned platforms that might harm the environment. This shift could create more decommissioning jobs, as well as new vessel designs, specialized cutting tools, and underwater drones to streamline the process—but also pose new safety challenges.
Ultimately, the responsibility of worker safety lies with the companies charged with decommissioning wells and platforms. From providing the appropriate protective gear to ensuring crews are properly trained in routine and emergency protocols, employers must put workers first. What’s more, collaboration among governments, energy companies, and safety organizations will be essential to manage these risks. Initiatives like sharing best practices, developing safer removal technologies, and conducting training programs for decommissioning crews can help reduce accidents and protect marine ecosystems.
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Arnold & Itkin is a nationally recognized law firm dedicated to advocating for workers and families across a range of industries, including maritime, energy, and transportation. With more than $20 billion won on behalf of clients in complex casesnationwide, the firm strives to uphold high standards of care and responsibility within offshore operations. Although decommissioning is vital for managing aging infrastructure, maintaining a strong focus on safety and accountability is crucial for the well-being of workers and the environment alike.
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