An analysis of common causes of major losses in the onshore oil gas and petrochemical industries - issue 255

Issue Number: 255


A review has been carried out of 100 major losses in the onshore oil, gas and petrochemical industries over the last 20 years. The purpose of this study is primarily to guide insurance risk engineers on which loss control areas to focus on during a typical risk engineering survey of onshore oil, gas and petrochemical facilities. This study supports the Lloyd’s Market Association’s key information guidelines for risk engineering survey reports and the guidelines for the conduct of risk engineering surveys and also builds upon previous studies.
The energy insurance industry is in a unique position in that it has experience and detailed knowledge of many industry losses, unlike many individual operators who may never experience a major loss. This study may therefore also be of interest to those working in the oil, gas and petrochemical industries who are looking for lessons learned opportunities to assist in their own risk management programmes. The analysis comprised a review of available loss information, primarily from insurance industry reports, as well as public domain sources.

IChemE is a registered charity in England & Wales (214379), and a charity registered in Scotland (SC 039661).