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
10 December 2024
Sector at economic and strategic crossroads, but clear path ahead for midstream additions
30 November 2024
Decades of turmoil have left Iraq’s vast energy potential underutilised, but renewed investment and strategic reforms are transforming it into a key player in the region
29 November 2024
The country's fifth and sixth oil and gas bid rounds have attracted a range of new players with gas as well as oil ambitions—and there’s a seismic shift in the contracting process
28 November 2024
Iraq is charting a new path for its indigenous resources and its youth, hoping to electrify the future with a mix of reforms and modernisation to fuel growth
