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
8 December 2025
The Caribbean country’s role in the global oil market is significantly diminished, but disruptions caused by outright conflict would still have implications for US Gulf Coast refineries
5 December 2025
Mistaken assumptions around an oil bull run that never happened are a warning over the talk of a supply glut
4 December 2025
Time is running out for Lukoil and Rosneft to divest international assets that will be mostly rendered useless to them when the US sanctions deadline arrives in mid-December
3 December 2025
Aramco’s pursuit of $30b in US gas partnerships marks a strategic pivot. The US gains capital and certainty; Saudi Arabia gains access, flexibility and a new export future
