IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v94y2016icp331-335.html
   My bibliography  Save this article

The insurance industry and unconventional gas development: Gaps and recommendations

Author

Listed:
  • Wetherell, Daniel
  • Evensen, Darrick

Abstract

The increasingly growing and controversial practice of natural gas development by horizontal drilling and high volume hydraulic fracturing (‘fracking’) faces a severe environmental insurance deficit at the industry level. Part of this deficit is arguably inherent to the process, whereas another part is caused by current risk information shortfalls on the processes and impacts associated with development. In the short and long terms, there are several conventional and unconventional methods by which industry-level and governmental-level policy can insure against these risks. Whilst academic attention has been afforded to the potential risks associated with unconventional natural gas development, little consideration has been given to the lack of insurance opportunities against these risks or to the additional risks promulgated by the dearth of insurance options. We chronicle the ways in which insurance options are limited due to unconventional gas development, the problems caused by lack of insurance offerings, and we highlight potential policy remedies for addressing these gaps, including a range of government- and industry-specific approaches.

Suggested Citation

  • Wetherell, Daniel & Evensen, Darrick, 2016. "The insurance industry and unconventional gas development: Gaps and recommendations," Energy Policy, Elsevier, vol. 94(C), pages 331-335.
    • Handle: RePEc:eee:enepol:v:94:y:2016:i:c:p:331-335
    DOI: 10.1016/j.enpol.2016.04.028
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421516301975
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2016.04.028?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jeffrey B. Jacquet & Richard C. Stedman, 2014. "The risk of social-psychological disruption as an impact of energy development and environmental change," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 57(9), pages 1285-1304, September.
    2. Howard Kunreuther, 1997. "Rethinking Society's Management of Catastrophic Risks*," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 22(2), pages 151-176, April.
    3. J. Tyler Leverty, 2012. "The Cost of Duplicative Regulation: Evidence From Risk Retention Groups," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 79(1), pages 105-128, March.
    4. Eberl, Jakob & Jus, Darko, 2012. "The year of the cat: Taxing nuclear risk with the help of capital markets," Energy Policy, Elsevier, vol. 51(C), pages 364-373.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Seyed Javad Hashemi & Faisal Khan & Salim Ahmed, 2019. "An Insurance Model for Risk Management of Process Facilities," Risk Analysis, John Wiley & Sons, vol. 39(3), pages 713-728, March.
    2. Martin, Nigel & Rice, John, 2019. "Coal Seam Gas projects: Proposed policy model for compensation and benefits sharing," Resources Policy, Elsevier, vol. 63(C), pages 1-1.
    3. Roach, Travis, 2018. "Oklahoma earthquakes and the price of oil," Energy Policy, Elsevier, vol. 121(C), pages 365-373.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jakob Korbinian Eberl, 2016. "The Collateral Framework of the Eurosystem and Its Fiscal Implications," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 69.
    2. Zilliox, Skylar & Smith, Jessica M., 2017. "Memorandums of understanding and public trust in local government for Colorado's unconventional energy industry," Energy Policy, Elsevier, vol. 107(C), pages 72-81.
    3. John Ntema & Lochner Marais & Jan Cloete & Molefi Lenka, 2017. "Social disruption, mine closure and housing policy: evidence from the Free State Goldfields, South Africa," Natural Resources Forum, Blackwell Publishing, vol. 41(1), pages 30-41, February.
    4. Wheeler, David & MacGregor, Margo & Atherton, Frank & Christmas, Kevin & Dalton, Shawn & Dusseault, Maurice & Gagnon, Graham & Hayes, Brad & MacIntosh, Constance & Mauro, Ian & Ritcey, Ray, 2015. "Hydraulic fracturing – Integrating public participation with an independent review of the risks and benefits," Energy Policy, Elsevier, vol. 85(C), pages 299-308.
    5. Li, Yujie & Zhai, Cheng & Xu, Jizhao & Yu, Xu & Sun, Yong & Cong, Yuzhou & Tang, Wei & Zheng, Yangfeng, 2023. "Effects of steam treatment on the internal moisture and physicochemical structure of coal and their implications for coalbed methane recovery," Energy, Elsevier, vol. 270(C).
    6. Paul R. Kleindorfer & Howard Kunreuther, 1999. "The Complementary Roles of Mitigation and Insurance in Managing Catastrophic Risks," Risk Analysis, John Wiley & Sons, vol. 19(4), pages 727-738, August.
    7. Clarke, Christopher E. & Hart, Philip S. & Schuldt, Jonathon P. & Evensen, Darrick T.N. & Boudet, Hilary S. & Jacquet, Jeffrey B. & Stedman, Richard C., 2015. "Public opinion on energy development: The interplay of issue framing, top-of-mind associations, and political ideology," Energy Policy, Elsevier, vol. 81(C), pages 131-140.
    8. Lai, Po-Hsin & Lyons, Kevin D. & Gudergan, Siegfried P. & Grimstad, Sidsel, 2017. "Understanding the psychological impact of unconventional gas developments in affected communities," Energy Policy, Elsevier, vol. 101(C), pages 492-501.
    9. Franz Sinabell & Thomas Url, 2006. "Versicherungen als effizientes Mittel zur Risikotragung von Naturgefahren," WIFO Studies, WIFO, number 28181, April.
    10. Nathalie de Marcelis-Warin & Erwann Michel-Kerjan, 2003. "Catastrophe risk sharing and public-private partnerships : From natural disasters to terrorism," Working Papers hal-00242981, HAL.
    11. Keser, Claudia & Montmarquette, Claude, 2008. "Voluntary contributions to reduce expected public losses," Journal of Economic Behavior & Organization, Elsevier, vol. 66(3-4), pages 477-491, June.
    12. Jose Miguel Albala-Bertrand, 2006. "The Unlikeliness of an Economic Catastrophe: Localization & Globalization," Working Papers 576, Queen Mary University of London, School of Economics and Finance.
    13. Hilary S. Boudet & Chad M. Zanocco & Peter D. Howe & Christopher E. Clarke, 2018. "The Effect of Geographic Proximity to Unconventional Oil and Gas Development on Public Support for Hydraulic Fracturing," Risk Analysis, John Wiley & Sons, vol. 38(9), pages 1871-1890, September.
    14. Devine-Wright, Patrick & Wiersma, Bouke, 2020. "Understanding community acceptance of a potential offshore wind energy project in different locations: An island-based analysis of ‘place-technology fit’," Energy Policy, Elsevier, vol. 137(C).
    15. Frances Drake, 2018. "Risk Society and Anti-Politics in the Fracking Debate," Social Sciences, MDPI, vol. 7(11), pages 1-22, November.
    16. Faure, Michael & Fenn, Paul, 1999. "Retroactive liability and the insurability of long-tail risks," International Review of Law and Economics, Elsevier, vol. 19(4), pages 487-500, December.
    17. Russell, Aaron & Firestone, Jeremy & Bidwell, David & Gardner, Meryl, 2020. "Place meaning and consistency with offshore wind: An island and coastal tale," Renewable and Sustainable Energy Reviews, Elsevier, vol. 132(C).
    18. Evensen, Darrick & Stedman, Rich, 2017. "Beliefs about impacts matter little for attitudes on shale gas development," Energy Policy, Elsevier, vol. 109(C), pages 10-21.
    19. Jose Miguel Albala-Bertrand, 2006. "The Unlikeliness of an Economic Catastrophe: Localization & Globalization," Working Papers 576, Queen Mary University of London, School of Economics and Finance.
    20. Sangaramoorthy, Thurka & Jamison, Amelia M. & Boyle, Meleah D. & Payne-Sturges, Devon C. & Sapkota, Amir & Milton, Donald K. & Wilson, Sacoby M., 2016. "Place-based perceptions of the impacts of fracking along the Marcellus Shale," Social Science & Medicine, Elsevier, vol. 151(C), pages 27-37.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:94:y:2016:i:c:p:331-335. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.