There are specific risks and exposures associated with the oil and gas sector requiring strategic options designed to address concerns and costs associated with this critical line of work. Having Hobbs NM oil and gas insurance can help take the sting out of liability issues that often surface as a result of injuries, property damage, environmental damage, and a host of other problems related to operational hazards, both expected, as well as unexpected.
The energy industry continues to improve in terms of safety and accident prevention, but accidents will continue to occur, whether due to human error, or the malfunctioning of key equipment. The industry thankfully has fewer incidents of injury and illness for workers than found in the manufacturing sector as a whole. In the seven years since the Deepwater Horizon oil spill energy companies have taken huge steps to improve safety, particularly in the case of offshore drilling.
Much of the oil and gas that was easier to get to has already tapped out thereby increasing geological risk. Exploration has moved on to areas that involve drilling in less friendly environments, for example, on a platform in the middle of the ocean. There are a wide variety of unconventional oil and gas extraction techniques in use that have helped to squeeze out resources in areas where it may have otherwise been impossible to achieve. The effect on the environment may not be fully realized, which is why oil and gas geologists test frequently in areas where drilling is set to commence.
Concerns relating to cost
The more difficult it becomes to drill, the more expensive a project in turn becomes. The issue becomes larger with the uncertainty of prices due to worldwide production beyond anyone’s control. The situation creates some real cost concerns. Many oil and gas companies are also in a constant struggle to find and retain qualified workers needed during boom times making payroll demands that simply add more costs to the overall picture.
Insurance claims, when they do occur, are generally high as a result of the utilization of more complex technology and penetration into emerging markets. The improvements in safety, along with tighter risk management budgets have created an increasingly competitive energy insurance market. Speak to an agent about hobbs nm oil and gas insurance for competitive pricing in this dynamic industry.