Well Plugging & Abandonment Market

Well Plugging & Abandonment Market size was estimated at USD 2.4 billion in 2024, and forecast to touch USD 3.5 million in 2032, the market is forecast to grow at a CAGR of 4.6% between 2025 and 2032 driven by rising number of maturing oil and gas oilfields globally and increasing government initiatives globally for well abandonment.

Key Market Insights

Market Size:

• • 2024 – USD 2.4 Billion
  • 2032 – USD 3.5 Billion
  • Market Forecast – CAGR of 4.6% from 2025-2032

Segment Insights

• • Removal Type Insights: Permanent segment captured the largest market share

Well Plugging & Abandonment Market Overview

When a well reaches the end of its lifetime, it must be permanently plugged and abandoned. Such plug and abandonment (P&A) operations usually consist of placing several cement plugs in the wellbore to isolate the reservoir and other fluid-bearing formations. Depending on well conditions, P&A operations can be quite time-consuming and is thus costly. Moreover, offshore wells are considerably costlier to abandon than onshore wells.

Well Plugging & Abandonment Market Drivers

Rising Number of Maturing Oil and Gas Oilfields Globally

The rising number of maturing oil and gas oilfields globally is one of the major factors driving the growth of the global well plugging and abandonment market. The majority of today’s oil and gas production comes from mature wells. For instance, 70% of the world production oil and gas comes from the oilfields which are greater than 20 to 30 years old.

Moreover, the increasing government initiatives globally for well abandonment is another factor which is vital for the growth of the well abandonment market. For instance, in April 2021, U.S House of Representatives Democrat introduced a bill authorizing $8 billion to plug and clean up abandoned oil wells nationwide, a measure aimed at creating jobs for oil and gas workers and reducing climate-warming emissions.

The Department of Environmental Protection has lined up 500 priority and nearby wells that could be bid right away when stimulus funding arrives. In addition to that, rising research for alternative methods and materials for P&A operations is influencing the growth of the market. Replacing cement as a plugging material can save time, money, and even can ensure better performance, and prevent costly repair operations. Development and qualification of new alternative materials like Sandaband and ThermaSet are considered as some of the most important technological achievements in P&A. These innovative materials has been used on field for a Temporary P&A by BP in Norway Ula Well.

Challenges Faced by Well Plugging & Abandonment Market Companies

However, high costs associated to cleanup abandoned and orphaned wells is one of the restraining factor. Well decommissioning management is one of the highest cost areas in a well’s lifecycle, comprising majority of the total decommissioning cost. Unexpected changes in project scope can mean vast additional expenditure or delays, given high rig and vessel rates.

Well Plugging & Abandonment Market Segment Analysis

Removal Type market Insights: Permanent segment captured the largest market share

Based on Removal type, the permanent segment stands as the largest segment for the global well plugging and abandonment market. The factors propelling the growth of the market in this segment includes the rising number of inactive and orphaned wells globally which needs to be permanently abandoned for the environmental concerns. For instance, in 2021, Alberta province has more than 80,000 inactive wells which are being planned to be permanently abandoned by the Liability Management Framework.

Well Plugging & Abandonment Market Major Players & Competitive Landscape

Several leading companies are Sclumberger, Halliburton, Baker Hughes Company, Chevron Corporation, Petrofac, Royal Dutch Shell, ExxonMobil, AF Gruppen, BP, Aker Solutions, among others.

Well Plugging & Abandonment Market News

• • In 2025, Zefiro Methane Corp. Subsidiary Secures Additional Plugging Contracts from State Government of Ohio, the contracts consists of a total of 50 oil and gas wells, out of which 28 have already been plugged.
  • In 2021, Chevron officially announced that the company is into engagement for plugging and abandonment of all wells and removal of 66 well conductors on Platforms Gail and Grace, given by BOEM, US department of the interior.
  • In 2020, Schlumberger offered well services to Well-Safe which included provision of plug and abandonment well services for significant work scope. This service offering helped both the players in generating more revenue from the well plugging and abandonment services. ​

Well Plugging & Abandonment Market Scope of the Report

Well Plugging & Abandonment Market Research Report Segmentation

The global well plugging & abandonment market has been segmented on the basis of removal type. Based on the removal type, the market is segmented into temporary and permanent. 

Global Well Plugging & Abandonment Market by Removal Type

• • Temporary
  • Permanent

Global Well Plugging & Abandonment Market by Region

• • North America Well Plugging & Abandonment Market (Option 1: As a part of the free 25% customization)

    • by Removal Type
    • US Market All-Up
    • Canada Market All-Up

  • Europe Well Plugging & Abandonment Market (Option 2: As a part of the free 25% customization)

    • by Removal Type
    • UK Market All-Up
    • Netherlands Market All-Up
    • Norway Market All-Up
    • Rest of Europe Market All-Up

  • Asia-Pacific Well Plugging & Abandonment Market (Option 3: As a part of the free 25% customization)

    • by Removal Type
    • Indonesia Market All-Up
    • Thailand Market All-Up
    • Australia Market All-Up
    • Rest of APAC Market All-Up

  • RoW Well Plugging & Abandonment Market (Option 4: As a part of the free 25% customization)

    • by Removal Type
    • Brazil Market All-Up
    • Nigeria Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Market All-Up

Major Players Operating in the Well Plugging and Abandonment (Option 5: As a part of the Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • Schlumberger
  • Halliburton
  • Baker Hughes Company
  • Chevron Corporation
  • Petrofac
  • Royal Dutch Shell
  • ExxonMobil
  • AF Gruppen
  • BP
  • Aker Solutions