Energy firms forced into risky environments

Oil companies are being forced to look for new oil fields in riskier environments, said JLT Speciality’s new energy divisional managing director Rupert Mackenzie.

Mackenzie’s new role, announced yesterday, will see him move from the firm’s onshore energy business to head up its energy division. He will also join the broker’s executive committee subject to Financial Conduct Authority approval.

In an interview following his appointment, he warned: “Oil companies are being forced to look for new oil fields and undertake exploratory drilling activity in areas of ocean with deepwater, or areas like the Arctic, which has its own challenges including environmental sensitivity.

“Exploration and production costs in these ‘new frontier regions’ are high and this has a knock-on effect on insurance values and puts pressure on market capacities.”

He added: “On the power side, we see enormous growth in both renewable and more traditional generation assets; with nations investing in new facilities to meet their medium to long-term energy needs.”

In his new role, Mackenzie hopes to deliver expertise in new and developing energy segments, as well as helping to grow and develop the existing business.