IUMI Spring Statistics report on mobiles, control of well, platform and pipelines
The International Union of Marine Insurance (IUMI) has released its Spring Statistics which report on three key sectors: hull, cargo and energy.
Regarding energy, the energy industry continues to provide profitable results for insurers as evidenced by most of the indicators presented here. However, with the significant change in commodity prices in recent months, this is likely to have a negative impact on some of these indicators during 2015.
The energy statistics have been above track in recent years and the question which is often raised is the one of, is this luck or is the energy industry generally safer!
Mobiles
The worldwide mobile fleet continues to grow, however the Gulf of Mexico is showing a stable position whereas the rest of the world fleet has increased significantly. For the first time in recent years the utilisation rates are down worldwide. The only type of unit seeing an increase in utilisation rate is the drillship.
This is not surprising with new drillships being delivered and deliberately hired to work in the deepwater and ultra deepwater regions of the world. Day rates continue to increase in most areas with only a few reductions. However, we should expect to see more significant reductions during 2015 as the commodity price impact starts to bite.
Control of Well
Following a significant increase in loss activity in 2013 we have seen a more normalised figure in 2014. It is estimated that the average control of well cost is approx $14m, compared to over $20m in 2013. With the reduction in oil price we should expect there to be less drilling during 2015.
Platform & Pipelines
Attritional loss activity continues to remain flat and following the long term trend. The platforms in particular are the most stable area of the exploration and production book. It is possible that with the commodity price changes, clients will start to review their long term economics of these assets and possibly decommissioning of assets will be accelerated.
Source:IUMI – International Union of Marine Insurance
