One of the most significant emerging energy risks is the growth of the hydraulic fracking process used to extract gas from shale formations. The legal and social issues that accompany the rapid expansion of this method of production, together with the potential environmental impact of these fracking operations, have been extensively highlighted in the media recently.
There certainly remains some debate as to how various risk transfer options available—including General Liability and Umbrella Liability policies, Operators Extra Expense (OEE) policies and Environmental Impairment Liability (EIL) policies—might respond in the event of a loss, particularly where any damage is alleged to be of a gradual nature. Our 2012 Energy Market Review, due to be launched on April 17, will be focusing on this emerging risk in our leading feature.
|This post was part of the special feature about What Risks Will Emerge in 2012? published January 24, 2012. The feature also covered emerging risks in these other fields:|
Power & Utilities
Supply Chain Interruption