Energy Insurance Ultimate Risk and Reward
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Transcript of Energy Insurance Ultimate Risk and Reward
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8/10/2019 Energy Insurance Ultimate Risk and Reward
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Energy InsuranceUltimate Risk and Reward
Heath CallanEnergy UnderwriterArgenta PLC
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The Energy Industryexplained.
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Energy Defined
The exploration, production and marketing
of hydrocarbons and related energy products.
Exploration &Production
Refining &Processing
PetrochemicalsTransportation
& StorageUtilities
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Upstream
Insurance Market Divisions
s ream
Downstream
Utilities
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Seismic Exploration
Upstream
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Seismic Exploration
1800 3200 meter longtowed streamers
Chase boat
Chase boat
6-8 meters below seasurface
Sound waves. No harmfuleffects on fish
Chase boat
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Seismic Exploration
Drilling Exploration
Upstream
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Drilling Exploration
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Seismic Exploration
Drilling Exploration
Upstream
Control of Well (Operators Extra Expense (OEE))
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30 inch 223 m
20 inch
900 m
Seabed
Sealevel
Wellhead How a well is drilled
14 inch3600 m
5050 m10 3/4 inch
5800 m
7 inch liner
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Seismic Exploration
Drilling Exploration
Control of Well
Upstream
Construction
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Control umbilical
Suction anchors
Offloading buoy
Gas injection well
Production loop
Subsea production well
gas injection line
Offloading tanker
Offloadinglines
Anchor lines
Water injection line
SCR
Gas export line
Control umbilical
Suction anchors
Offloading buoy
Gas injection well
Production loop
Subsea production well
gas injection line
Offloading tanker
Offloadinglines
Anchor lines
Water injection line
SCR
Gas export line
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Seismic Exploration
Drilling Exploration
Control of Well
Upstream
Construction
Production Risks
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Seismic Exploration
Drilling Exploration
Control of Well
Midstream
Production Risks
Midstream
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Seismic Exploration
Drilling Exploration
Control of Well
Refining
Production Risks
Midstream
Refining
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Seismic Exploration
Drilling Exploration
Control of Well
Power Generation
Production Risks
Midstream
Refining
Power Generation
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Lloyds advantages
Access to business
Portfolio Management
Underwriting an Energy Portfolio
Clash / Aggregations
Realistic Disaster Scenarios
Capital Requirements
Reinsurance
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Market performance
Current Issues
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15
20
25
30
15
20
25
30
WELD energy losses 1990 2011 (excess of US$ 1m)versus estimated global energy premium incomeUS$bn US$bn
20 YEAR OVERALL LOSS/PREMIUM TOTALS
0
5
10
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11*0
5
10
Losses excess US$1m Estimated Worldwide Premium (US$)
* incurred to date
Source: Willis Energy Loss Database as at May 13 2011 (figures include both insured and uninsured losses)
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Market performance
Unprecedented run of high value risk losses
Current Issues
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Market performance
Unprecedented run of high value risk losses
Capacity
Current Issues
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2 000
2,500
3,000
3,500
4,000
4,500
5,000
US$mUpstream Insurer Capacities 2000-2011
(Excluding Gulf of Mexico Windstorm)
2011 CAPACITY INCREASED
0
500
1,000
1,500
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Source: Willis
Operating
Construction2011 upstream capacity highest since records began
Estimated realistic market capacities
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Market performance
Unprecedented run of high value risk losses
Capacity
Deepwater and subsea risks
Current Issues
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Market performance
Unprecedented run of high value risk losses
Capacity
Deepwater and subsea risks
Current Issues
Shale plays
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Market performance
Unprecedented run of high value risk losses
Capacity
Deepwater and subsea risks
Current Issues
Shale plays
Frontier territories
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Market performance
Unprecedented run of high value risk losses
Capacity
Deepwater and subsea risks
Current Issues
Shale plays
Frontier territories
Political upheavals
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Market performance
Unprecedented run of high value risk losses
Capacity
Deepwater and subsea risks
Current Issues
Shale plays
Frontier territories
Political upheavals
Cost of steel / Rising costs
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Market performance
Unprecedented run of high value risk losses
Capacity
Deepwater and subsea risks
Current Issues
Shale plays
Frontier territories
Political upheavals
Cost of steel / Rising costs
Third Party Liability and allocation of contractual risk
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Market performance
Unprecedented run of high value risk losses
Capacity
Deepwater and subsea risks
Current Issues
Shale plays
Frontier territories
Political upheavals
Cost of steel / Rising costs
Third Party Liability and allocation of contractual risk
OEE - standalone
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Market performance Unprecedented run of high value risk losses
Capacity Deepwater and subsea risks Shale plays
Current Issues
Frontier territories Political upheavals Cost of steel / Rising costs Third Party Liability and allocation of contractual risk OEE - standalone OPA / OPOL Pollution coverage
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Market performance Unprecedented run of high value risk losses
Capacity Deepwater and subsea risks Shale plays
Current Issues
Frontier territories Political upheavals Cost of steel / Rising costs Third Party Liability and allocation of contractual risk OEE - standalone OPA / OPOL Pollution coverage Hurricane impact.Ivan / Katrina / Rita / Ike
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Noble / Delek and Leviathan
Zion Oil and Gas ATP
Development Options ?
Israel Energy Sector
Gas market Recent issue reported at Leviathan
Political / Terrorism Risk
OPA / OPOL for Israel ? Local infrastructure
What if........MUST be considered.
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