OIL & GAS INDUSTRY GROWING INSURANCE OPPORTUNITIES

The oil and gas sector is creating an opportunity for insurance industry with a renewed emphasis on domestic versus foreign production is generating a push for the USA to become less dependent on foreign energy. The unearthing of The Eagle Ford Shale, one of the largest onshore oil and gas discoveries in the past half century, has only further illustrated the opportunity that is available. In many cases, hydraulic fracturing is the most common method to extract natural gas from the

recently discovered shale plays. The industry itself is broken down into four segments: exploration, production, processing, and distribution, with the primary focus and greatest opportunities lying in the production sector. The three main types of companies seeking insurance for oil and gas production are oil lease property, well servicing and workover equipment, and service contractors. Each aspect includes steps such as casing, cementing, and perforating. From

supervision of the rig equipment and tools through the various aspects of the process to obtain oil and gas, there is a wide margin for errors. Each individual contractor as well as the company in its entirety needs to be protected from such inevitable risks. Our key opportunities lie within the service equipment arena and the existing oil lease properties. This emerging industry is a great prospect for insurance agents to expand their current book of business and clientele.