Thinking About Risk in the Offshore Energy Industry

摘要

This paper will provide a broad overview of issues relating to decision analysis and risk management affecting the offshore industry. It is designed to provide context and background for other panelists in the session on Risk Management in the Offshore Energy Industry. This paper addresses the process for identifying risks, including (ⅰ) determining risk-baseline, (ⅱ) addressing uncertainty, and (ⅲ) identifying and assessing risks. This paper also reviews some fundamental concepts in thinking about risk, and analyzes and discusses the types of risk affecting the offshore energy industry, including political risk, expropriation and nationalization, market risk, transportation, operational risk, and legal risk. Finally, the paper provides an overview of methods for managing risk, including common risk management tools.