Welcome once more to the Global Energy and Power Review.
When I sat down last year to write this letter the oil spill at BP's Deepwater Horizon disaster was 12 months in the past but still looming large over the offshore oil sector, as well as sending its tentacles out into the energy (re)insurance markets.
At the time of writing now the methane gas leak from the Elgin production utility quarters platform has been ongoing for about seven weeks, with two rigs having been manoeuvred into place in order to drill relief wells.
The two incidents couldn't be more different, however. The Deepwater Horizon leak was a true catastrophe: questionable safety standards; tragic loss of life; a massive property loss; widespread environmental damage; liability class actions; suit and countersuit between joint venture partners; and the prospect of a colossal (and effectively uninsured) business interruption (BI) bill.
The Elgin leak, on the other hand, appears to be a bit of damp squib for (re)insurance pundits - which is doubtless a profound relief for the involved parties.
To view the 2012 review please click here
Gavin Bradshaw,
Editor