(Small Caps) Australian government unveils $60b offshore decommissioning roadmapBy Colin Hay - September 14, 2023The Australian government has revealed plans to create a roadmap to help navigate the forecast upcoming surge in decommissioning of offshore facilities that is expected to cost up to $60 billion over the next 30 to 50 years.The Federal Minister for Resources and Northern Australia, Madeleine King, told parliament that Australia is well placed to also export its skills and expertise to become a world leader in offshore decommissioning – a looming major global issue.The minister has told federal parliament that she is now working with the nation’s offshore industries, the offshore workforce, state and territory governments and her ministerial colleagues to develop the roadmap for a future Australian offshore decommissioning industry.INVEST IN THE LATEST ASX IPOS AND PLACEMENTSSignificant economic opportunityShe said the roadmap will examine how Australia can capture the significant economic opportunity looming in the years and decades ahead, including preparing for future removal of offshore wind farm infrastructure.The new investigations will also consider the potential for the re-use of materials from the decommissioned offshore platforms, pipelines and other infrastructure in other industries while also investigating other likely recycling opportunities.“Norway and the United Kingdom see up to 97% of the steel from offshore projects recycled and reused into things like offshore turbines,” the minister told her parliamentary colleagues.New jobs and skillsThe minister said the roadmap is being designed to help identify opportunities to create new, high-paying, high-skill jobs in the regions, while supporting the transition of Australia’s existing offshore workforce.The May federal budget included $4.5 million to develop the decommissioning roadmap which is targeted for release in 2024.To support the development of the roadmap, the Australian government has launched an issues paper and will shortly commence public consultations, with the aim of helping to scale up a viable domestic offshore decommissioning industry in this country.“We can do it here. We should do it here. And we can export our expertise to our region.has outlined the potential for Australia to build a new industry to decommission offshore oil and gas infrastructure and released an issues paper that points to the opportunities for the sector.”“Establishing a decommissioning industry in Australia will provide immense economic opportunities and create well-paid jobs in regional communities,” Minister King said.Offshore sector facing massive headacheWith thousands of pieces of infrastructure located in Australia’s primary offshore petroleum producing basins, government and local industry is facing a massive headache with a stream of projects currently winding down.Australian law requires that the offshore resources industry pays all costs associated with decommissioning offshore oil and gas infrastructure.Minister King said the government’s objective now is to identify opportunities to maximise the benefits of this industry investment to all Australians.“The Australian government wants as much of the anticipated $60 billion in spending to remove old oil and gas infrastructure to be spent backing Australian ingenuity and jobs.”Extraordinary economic opportunityThe minister said that while the offshore resources industry and governments are facing an extraordinary task, it is also an extraordinary economic opportunity for Australia.“With the right policies and regulatory settings, and by harnessing the expertise of our existing offshore resources workforce, we can capture this economic opportunity and build a vibrant maritime decommissioning economy.”“We want to build an industry to service not just ageing offshore oil and gas assets in Australia, but also meet future demand for sustainably decommissioning offshore windfarms at the end of their productive life.”New opportunities for service providersLocal and international service providers are already circling to grab a piece of the $60 billion pie that will require expertise and technology from a wide range of specialists.Perth-headquartered digital twin solutions specialist RemSense Technologies (ASX: REM) is promoting its unique Virtualplant system as an offering that can provide industry and government with an answer that can not only save money and time, but also make offshore decommissioning activity safer.Virtualplant utilises virtual reality (VR) and artificial intelligence (AI) technology to create a digital representation of assets, such as an offshore platform. This can be integrated with existing business operations and asset management systems to deliver greater productivity, increased safety and reduced costs.In particular, RemSense says there is significant value in Virtualplant’s ability to initially facilitate general visual inspection (GVI) operations remotely assessing the asset in its ‘as built’ environment and not ‘as designed’.This can provide a safer and more cost-effective alternative and potentially significantly reduce the need to send multiple people offshore during risky decommissioning operations.STOCK CODESASX:REMRelated articlesReport says world needs to triple nuclear capacity by 2025September 15, 2023Australia remains a key player in global clean energy pushSeptember 15, 2023Australian petroleum industry lobby group drops oil linkSeptember 14, 2023US facing growing challenges in meeting increased critical minerals demandSeptember 11, 2023EVs in the construction sector may live or die on battery pricingSeptember 7, 2023Uranium price breaches US$60 a pound as demand outstrips supplySeptember 7, 2023More Related ArticlesInterviewsElevate Uranium increases activity at Koppies with 3 drill rigs on siteJames Bay Minerals attracts major lithium industry interest with ASX listingInternational Graphite's Springdale project is now Australia's 2nd largest graphite depositTerra Uranium achieves success with initial Parker Lake diamond holeFar East Gold secures Eurasian Resources Group investment for copper drilling in IndonesiaCritical Resources makes significant lithium intercepts at Mavis LakeMore InterviewsLatest NewsPopularReport says world needs to triple nuclear capacity by 2025Trigg Minerals diversifies into gold and base metals while pushing ahead on potash projectNeurotech International progressing promising paediatric treatmentOzAurum Resources bolts on Brazil lithium to its portfolioLithium Universe unveils plans for a lithium processing hub in CanadaASX 200MoreASX 200Hot topicsReport says world needs to triple nuclear capacity by 2025Australia remains a key player in global clean energy pushAustralian government unveils $60b offshore decommissioning roadmapAustralian petroleum industry lobby group drops oil linkUS facing growing challenges in meeting increased critical minerals demandINVEST IN THE LATEST ASX IPOS AND PLACEMENTSInvestor ToolsTOP STOCKSVOLUME STOCKSANNOUNCEMENTSDIRECTOR TRADESSHORTED STOCKSDIVIDENDSUPCOMING IPOSMARKET DATAULTIMATE GUIDESSECTOR TRACKERASX STOCKS0 - 9ABCDEFGHIJKLMNOPQRSTUVWXYZMAIN MENUHOT TOPICSLATESTTOP STOCKSASX 200IPOSVIDEOSPODCASTEVENTSDEALSSECTORSMINING & RESOURCESBIOTECH & PHARMATECHNOLOGYOIL, GAS & ENERGYINDUSTRIALS & JUNIORSTOOLSSTOCK SUMMARYASX ANNOUNCEMENTSVOLUME STOCKSDIRECTOR TRADESSHORTED STOCKSUPCOMING DIVIDENDSSECTOR TRACKERMARKET DATAULTIMATE GUIDESOTHERADVERTISEABOUTGLOSSARYTRADING CALENDARTERMSPRIVACYCONTACTNEWSLETTERGet the latest market news, interviews and stock alerts.EmailKEEP ME INFORMEDINTERNATIONAL EDITIONSAUSTRALIACANADAUSAUKCHINAGERMANYSmall Caps is Australia's #1 site for market news & information on ASX listed small cap companies.Small Caps and affiliated companies accept no responsibility for any claim, loss or damage as a result of information provided or its accuracy. The information provided on this site is general in nature, not financial product advice, see a financial expert before making any investment decision. Your personal objectives, financial situation or needs have not been taken into consideration. There may be a conflict of interest present with commercial arrangements with companies and/or stock held. Small Caps or an associate may receive a commission for funds raised.Copyright 2023 Small Caps. All rights reserved.Follow us:
Expand
(20min delay)