For a nice change, this is an excellent series of in-depth and insightful articles focusing on the problems facing both oil and gas producers as well as insurers of these companies. Porter Ranch provides yet the latest example of policies that are still being offered at far too low premiums levels, given the very real and enormous risks that still exist in the industry (even after BP). This could be a huge ongoing problem for the insurance firms. In particular, it will now be a huge problem for those insurers that offered a total of $1B in broad liability coverage to SoCalGas. By the way, for those interested, the names of these (unfortunate) insurers are:
OIL (Oil Insurance Limited)
EIM (Energy Insurance Mutual)
NEIL (Nuclear Electric Insurance Limited)
AEGIS
The fact that a major new technology, which is likely to become a true game changer in the field of blowout mitigation, has yet to get any real press coverage, or attention from the industry, shows just how poor and lacking our exploration and discovery of new ways for dealing with these disasters, continues to be. The insurance industry and all others concerned with minimizing damage resulting from such disasters (which could become even more prevalent in the future), really needs to wake up and smell the roses and potential market opportunities that those ‘roses’ could offer (and they don’t have to smell like rotten eggs, either). If a potentially revolutionary new way to quickly dealing with such disasters does, in fact, exist, then it would mean that low cost and high-limit liability coverage for producers could also become a new insurance product opportunity, that could have a long term worth in the many billions of dollars. For a starter, those interested in this possibility should explore the ‘Quantum_|_Quench(TM)’ technology of ParadymeUSA. While details of this new technology have not yet been made public, they are expected to be made known fully within 2-4 years (allowing those interested in it to obtain confidential information about it and gain a huge market advantage should they adopt it first, or exclusively. There now exists a real opportunity for large insurance carriers to leverage such a promising technology (or another one that may yet await developed) to allow them to offer totally new kinds of, ‘technology-married’, insurance policies, who’s value could be as much as $1B-$2B/year (worldwide). Then, instead of just bemoaning these disasters – again and again – it may become possible for the insurance industry to step up and do something about it, particularly if the petroleum industry itself has failed to do so. Linking specific technology solutions with new kinds of insurance products, could become THE great new insurance opportunity of the 21st century! Clearly, those insurers that appreciate this opportunity and become it’s first and best 21st century ‘insurance/technology matchmakers’, will stand to prosper tremendously, while those hat don’t, will likely fade away (as will many of the oil and gas companies who will not be able to obtain adequate insurance coverage in the future).
P.S. With the right technology, evacuation and other risks are also able to be calculated and planned for, since a reliable technology will make uncertainty simply go away. Actuarial calculations can only be made when uncertainty is largely eliminated and the statistics become reliable.
Apologies for the numerous grammatical errors that I just noticed in my earlier, hastily written, comment (which didn’t get immediately posted). There doesn’t seem to be a way here to edit comments to fix these kinds of errors. I did try to submit another comment that was written a little better. Anyway, hopefully, the gist of my earlier comment was understandable and offered another perspective on the risks and exposures facing the petroleum industries (and those seeking to insure them). More can and should be done to significantly lower these risks or premiums will have to rise, sharply. Hopefully, all of the parties involved will start paying more serious attention to these risks and insurance companies will do even more to ‘encourage’ this (if necessary, with both sticks and a carrots).
Pascal, please direct your questions to Info(at)ParadymeUSA(dot)com, or Info(at)QuantumQuench(dot)com. However, security and confidentiality precautions may limit the information we are allowed to give out at this time. Thanks for your interest.
Regards,
Nicole
Director of Communications
Paradyme Systems USA
For a nice change, this is an excellent series of in-depth and insightful articles focusing on the problems facing both oil and gas producers as well as insurers of these companies. Porter Ranch provides yet the latest example of policies that are still being offered at far too low premiums levels, given the very real and enormous risks that still exist in the industry (even after BP). This could be a huge ongoing problem for the insurance firms. In particular, it will now be a huge problem for those insurers that offered a total of $1B in broad liability coverage to SoCalGas. By the way, for those interested, the names of these (unfortunate) insurers are:
OIL (Oil Insurance Limited)
EIM (Energy Insurance Mutual)
NEIL (Nuclear Electric Insurance Limited)
AEGIS
The fact that a major new technology, which is likely to become a true game changer in the field of blowout mitigation, has yet to get any real press coverage, or attention from the industry, shows just how poor and lacking our exploration and discovery of new ways for dealing with these disasters, continues to be. The insurance industry and all others concerned with minimizing damage resulting from such disasters (which could become even more prevalent in the future), really needs to wake up and smell the roses and potential market opportunities that those ‘roses’ could offer (and they don’t have to smell like rotten eggs, either). If a potentially revolutionary new way to quickly dealing with such disasters does, in fact, exist, then it would mean that low cost and high-limit liability coverage for producers could also become a new insurance product opportunity, that could have a long term worth in the many billions of dollars. For a starter, those interested in this possibility should explore the ‘Quantum_|_Quench(TM)’ technology of ParadymeUSA. While details of this new technology have not yet been made public, they are expected to be made known fully within 2-4 years (allowing those interested in it to obtain confidential information about it and gain a huge market advantage should they adopt it first, or exclusively. There now exists a real opportunity for large insurance carriers to leverage such a promising technology (or another one that may yet await developed) to allow them to offer totally new kinds of, ‘technology-married’, insurance policies, who’s value could be as much as $1B-$2B/year (worldwide). Then, instead of just bemoaning these disasters – again and again – it may become possible for the insurance industry to step up and do something about it, particularly if the petroleum industry itself has failed to do so. Linking specific technology solutions with new kinds of insurance products, could become THE great new insurance opportunity of the 21st century! Clearly, those insurers that appreciate this opportunity and become it’s first and best 21st century ‘insurance/technology matchmakers’, will stand to prosper tremendously, while those hat don’t, will likely fade away (as will many of the oil and gas companies who will not be able to obtain adequate insurance coverage in the future).
P.S. With the right technology, evacuation and other risks are also able to be calculated and planned for, since a reliable technology will make uncertainty simply go away. Actuarial calculations can only be made when uncertainty is largely eliminated and the statistics become reliable.
Where are all the comments?
Are comments being allowed here? They don’t seem to show up.
Apologies for the numerous grammatical errors that I just noticed in my earlier, hastily written, comment (which didn’t get immediately posted). There doesn’t seem to be a way here to edit comments to fix these kinds of errors. I did try to submit another comment that was written a little better. Anyway, hopefully, the gist of my earlier comment was understandable and offered another perspective on the risks and exposures facing the petroleum industries (and those seeking to insure them). More can and should be done to significantly lower these risks or premiums will have to rise, sharply. Hopefully, all of the parties involved will start paying more serious attention to these risks and insurance companies will do even more to ‘encourage’ this (if necessary, with both sticks and a carrots).
Will be keeping a printed copy of all three of these articles for future reference. Thanks, Pascal.
G.S.,
Thanks for your comments.
I am very interested in the new well control technology from ParadymeUSA.
Can you email me more information?
Thanks,
Pascal
Pascal, please direct your questions to Info(at)ParadymeUSA(dot)com, or Info(at)QuantumQuench(dot)com. However, security and confidentiality precautions may limit the information we are allowed to give out at this time. Thanks for your interest.
Regards,
Nicole
Director of Communications
Paradyme Systems USA
looking for part 3?….