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Posts Tagged ‘Self Insurance’

What should frighten stiff Royal Dutch Shell shareholders

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By John Donovan

Any Shell shareholders diligent enough to wade through all the small print in the recently released Shell Strategic Report have grounds to shudder at the confirmation buried on page 8 that Royal Dutch Shell PLC mainly self insures its risk exposures. This information should be prominently displayed in large red text, flashing if that was possible.

The relevant section even cites the BP Deepwater disaster for which BP had no external insurance. As a consequence, one of the worlds biggest companies was brought to the edge of bankruptcy by just one calamitous event. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Shell self-insurance of Arctic drilling risk

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

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.
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