Friday, April 23, 2010
Concerns are rising about the potential environmental impact after the sinking of the Deepwater Horizon oil rig in the Gulf of Mexico about 50 miles off the coast of Louisiana. Eleven workers areÂ feared deadÂ and 17 others were injured following an explosion and fire that ripped through the rig late Tuesday. The rig, which is owned by offshore drilling contractor Transocean Ltd, was under contract to oil giant BP, according to media reports. Check out a Guy Carpenter risk report for more on this story. An article in the New York Times notes that the potential for environmental disaster from the spill would be greatest if the oil were to reach the Louisiana coast. BP was reported to be dispatching a flotilla of more than 30 vessels capable of skimming more than 170,000 barrels of oil a day to protect sea lanes and wildlife in the area of the sunken platform. A Reuters report focuses on the financial impact of the loss of the rig for Transocean Ltd, noting analystsâ€™ comments that the cost of the rig will be largely covered by insurance. The comments underscore the point that insurance provides support to many different industries, including energy. Check out a recent presentation by I.I.I. president Dr. Robert Hartwig for information on the impact of the global financial crisis on the energy sector and trends and challenges in energy markets.