National Oil Companies (NOCs) are experiencing less major losses than in previous years, according to a report from Marsh.
The research, entitles The 100 Largest Losses, reveals that losses are down, despite the increase in size of energy and chemical projects.
“Energy sector risk management has evolved into an applied science that is making a real difference to mitigating the catastrophic losses that were more common in previous years,” Jim Pierce, chairman of Marsh’s Global Energy Practice, said.
“It is important that oil, gas, and chemical companies make use of improved risk management techniques as we predict that there will be more energy sector mega-projects. The age of the $50 billion project has arrived and with it the potential for any large loss to be very costly,” he added.
“However, by learning from past incidents, and applying the latest risk mitigation strategies, many NOCs and other energy sector players are well-equipped to avoid the kind of catastrophic incidents that could do serious long-term harm,” Pierce concluded.
