Oil, Gas Production In Gulf Of Mexico To Be Impacted By Asset
Damage, Disruption
OAKLAND, Calif.--(Business Wire)--
EQECAT, Inc., Oakland, Calif., the leading authority on
extreme-risk modeling, Monday afternoon (Eastern Time) said, based on
current storm information provided by the National Oceanic and
Atmospheric Administration (NOAA), initial estimated onshore insured
losses from Hurricane Gustav could range from $6 billion to $10
billion, primarily in Louisiana.
In addition, production of crude oil and natural gas offshore in
the U.S. Gulf of Mexico will be impacted by asset damage and
disruption. EQECAT said it expects about 5 percent of the production
capacity for oil, and 5 percent of production capacity for natural
gas, for the next year will be shut-in.
EQECAT's estimates will be updated as additional information about
the storm's characteristics becomes available.
Beyond wind damage to commercial and residential fixed structures,
such as office buildings, factories , warehouses, and homes, EQECAT's
insured loss estimates include business interruption, as a result of
the destruction of property; and demand surge, which occurs when the
demand for products and services to repair damage significantly
exceeds the regional supply. Thus, these products and services may
have to be brought to the region quickly from distant points,
resulting in additional costs for transportation, packaging and
manufacture.
Excluded from EQECAT's insured loss estimates are losses related
to flooding, private and commercial automobiles and similar vehicles.
Energy Disruption Estimates Based Upon EQECAT's Offshore Energy
Model
EQECAT's estimates of the impact on offshore energy were developed
through its Gulf of Mexico Offshore Energy Model (OEM). This model
helps oil and gas producers, insurers and reinsurers to manage
hurricane risk for offshore assets. Currently, the model covers
exposures in the U.S. Gulf of Mexico. The EQECAT OEM was launched in
May 2007 and is based on rigorous science, engineering research, and
robust mathematical methodologies.
EQECAT Representatives Available For Commentary
Representatives of EQECAT, headquartered in Oakland, will be
available throughout this storm to provide commentary. For additional
information, please contact Eric Samansky, The Samansky Group, at
516-319-0858.
EQECAT Software Enables Clients Worldwide To Assess, Manage Wide
Range Of Risks
EQECAT and its parent ABSG Consulting Inc. (ABS Consulting) serve
the global property and casualty insurance industry, major
multinational corporations and financial institutions. EQECAT is known
as the technical leader and innovator in the development of analysis
tools and consulting services to quantify exposure to natural and
man-made catastrophic risk.
Through its extreme-risk modeling software platform,
WORLDCATenterprise(TM), EQECAT enables clients to assess and manage
potential damage and loss from wind, earthquakes, flood, wildfire, and
terrorism, among other perils. WORLDCATenterprise(TM) includes 177
natural hazard software models for 89 countries spanning six
continents.
EQECAT was founded in 1994 and is headquartered in Oakland,
California. For additional information, please visit
www.absconsulting.com and www.EQECAT.com.
The Samansky Group
Eric R. Samansky, 516-319-0858
eric@samanskygroup.com
Copyright Business Wire 2008
