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Improved disclosure and risk management has been demanded of oil and gas firms by a coalition of investors in the wake of the BP oil spill disaster in the Gulf of Mexico.
A group of 58 investors led by the US-based Ceres network have written letters to chief executives at 27 oil and gas companies – as well as 26 insurance firms that provide cover for offshore drilling – requesting information on how risk is managed in offshore operations and how the disaster has changed their approach to risk management.
The letters request other information on the companies’ post-BP disaster policies, including on contingency plans, health and safety issues, and support for new regulation on dangerous drilling.
Andrew Logan, oil and gas industry programme director at Ceres, said: ‘The shift to deeper waters comes with a significantly increased risk profile. Yet there has been poor disclosure by oil companies on how they manage risk. While the technology has advanced, the ability to respond to spills, clearly, has not.’
‘It’s no longer enough for investors to simply pick the good operators. We need to push the industry as a whole to improve its practices.’
The investors, who own collective assets of more than $2.5trillion, have asked the firms to respond to their questions by 1 November.
A group of 58 investors led by the US-based Ceres network have written letters to chief executives at 27 oil and gas companies – as well as 26 insurance firms that provide cover for offshore drilling – requesting information on how risk is managed in offshore operations and how the disaster has changed their approach to risk management.
The letters request other information on the companies’ post-BP disaster policies, including on contingency plans, health and safety issues, and support for new regulation on dangerous drilling.
Andrew Logan, oil and gas industry programme director at Ceres, said: ‘The shift to deeper waters comes with a significantly increased risk profile. Yet there has been poor disclosure by oil companies on how they manage risk. While the technology has advanced, the ability to respond to spills, clearly, has not.’
‘It’s no longer enough for investors to simply pick the good operators. We need to push the industry as a whole to improve its practices.’
The investors, who own collective assets of more than $2.5trillion, have asked the firms to respond to their questions by 1 November.
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