COMMENT BY A FORMER SHELL EMPLOYEE
I just read your blog about Shell not being able to obtain disaster insurance for its operations in the Arctic. I interpret this to mean that the insurance underwriters, who are pros at this sort of thing, find the probability of an ‘accident’ on the part of Shell during drilling operations to be so high that they are unwilling to risk their own financial well being.
This is essentially a vote of ‘no confidence’ on the part of the insurance industry in Shell’s contingency plans, and Shell’s engineering and management capabilities, i.e., the competence of Shell staff, technical as well as administrative. The insurance industry simply finds that Shell is not up to the task at hand and the risk of a major accident is too great. read more
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