Drilling in the Permian
US oil and gas sector facing insurance challenges
The market has hardened significantly, but there are strategies energy companies can employ to mitigate its impact
The US domestic energy insurance sector has faced significant difficulties in recent years—including nuclear verdicts, rising inflation rates, natural disasters, environmental concerns and the impact of Covid-19. These challenges have created a hard insurance market for oil and gas companies. Nuclear verdicts—a term for exceptionally high jury awards—have been one of the major factors. Attorneys have been successful in persuading juries on claims of company negligence in various sectors, including oil and gas, resulting in huge payouts. This has led to a growing trend in liability risk and costs, also known as ‘social inflation’. Small-to-medium-size businesses have been particularly affecte
Also in this section
5 March 2026
Gas is a central pillar of Colombia’s energy system, but declining production poses a significant challenge, and LNG will be increasingly needed as a stopgap. A recent major offshore gas discovery offers hope, but policy improvements are also required, Camilo Morales, secretary general of Naturgas, the Colombian gas association, tells Petroleum Economist
4 March 2026
The continent’s inventories were already depleted before conflict erupted in the Middle East, causing prices to spike ahead of the crucial summer refilling season
4 March 2026
The US president has repeatedly promised to lower gasoline prices, but this ambition conflicts with his parallel aim to increase drilling and could be upended by his war against Iran
4 March 2026
With the Strait of Hormuz effectively closed following US-Israel strikes and Iran’s retaliatory escalation, Fujairah has become the region’s critical pressure release valve—and is now under serious threat
