Disruption To Energy Production Not Expected To Be Extensive
OAKLAND, Calif.--(Business Wire)--
EQECAT, Inc., the leading authority on extreme-risk modeling,
Saturday morning said, based on current storm information provided by
the National Oceanic and Atmospheric Administration (NOAA), initial
post-landfall estimated insured onshore losses from Hurricane Ike
could range from $8 billion to $18 billion, primarily in the Texas
counties of Brazoria, Harris, Galveston, Chambers and Jefferson.
This estimate is based upon initial observations of Hurricane Ike
wind, wave and flood patterns. EQECAT's estimates may be updated as
additional information about the storm becomes available. Hurricane
Ike caused significant flooding in and around Galveston Bay.
Hurricane Ike traversed the Gulf of Mexico offshore energy
production area with maximum winds at a strong category 2 hurricane
level, much lower than the winds observed from Hurricanes Rita, Ivan
and Katrina. But wave heights from Hurricane Ike were larger than
typically expected from events of this size. Damage is likely for
older platforms in shallow water. Deep water platforms are less likely
to be severely damaged. Newer platforms, designed to more rigorous
standards, in shallow water, as well as deep water, also are less
likely to be severely damaged, EQECAT said.
"Onshore, flooded pumping stations and refineries are expected to
impede immediate resumption of energy production," said Tom Larsen,
senior vice president of EQECAT. "However, disruption isn't expected
to be extensive."
Beyond wind damage to commercial, industrial 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.
EQECAT Representatives Available For Commentary
Representatives of EQECAT, headquartered in Oakland, will be
available to provide commentary. For additional information, please
contact Eric Samansky, The Samansky Group, at 516-319-0858.
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 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, 1-516-319-0858
eric@samanskygroup.com
Copyright Business Wire 2008
