Amazing how we rise 5% and some look back to the past?30 Dec 2019 23:59
I see no reason now to look back over the past year in a negative way. It appears from what I have seen we are starting to come back into a rich vein of Gold.
Quite right Mr T but the owner of the Rig BP will have it Insured for all Subcontractors and pay out first (but between you and me that will not stop their Insurers (such as the Deep Water Horizon) cross subrogating against those who caused the loss later, especially if they were not Insured with the same Insurers.
From my experience at Lloyds if a drilling Company has caused physical loss measurable they will be Insured and responsible. They are usually very skilled with their application and have in recent years made tremendous strides with the technology they use to drill. In most cases they are also very safe and know how to out right errors or mistakes (particularly in the Oil and Gas industries where blow outs do occur). Their Geological surveys are also very accurate from my experience. A good quality Company will have Insurance for Contract works, loss of earnings and/or profits by consequential loss, as well as for employees, plant and equipment, and this is even more of a good looking to look forward and not back, (perhaps the year end figures will surprise those who question Drilling Companies) and they may prefer to expand energies topping up their own share allocation before it is too late.
If a Drilling Company is no good they will lose their contract and this will go against them when trying to price and win new contracts or when renewing their own Insurances which are very expensive. I would suggest as one or two have said on here already, deliberate acts of sabotage would be a bad practise for any firm to undertake and it simply would not be worth it long term.
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