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
1 May 2024
Energean CEO Mathios Rigas looks to results of critical Anchois appraisal well
30 April 2024
While its regional neighbours reap the rewards of oil and gas success, Iraq’s hydrocarbons sector is lagging behind
29 April 2024
Although recent, firmer gas prices have blunted some price-sensitive demand, the overall growth outlook remains robust
26 April 2024
While the US has been breaking records for its premium grade crude, there are doubts over whether you can have too much of a good thing