Insurance Need for Workers and Citizens within the Drilling Zone Term Paper

Insurance Need for Workers and Citizens within the Drilling Zone - Term Paper Example This paper illustrates that the Texas Bureau of Labor Statistics shows that the death of oil workers increased by 3.2 percent for the period between 2008-2012, to a total of 545. The Houston Chronicle reported that Texas had the highest deaths at 216. The oil and natural gas industry in Texas faces challenges where insurance partners and energy companies will be forced to adapt for them to benefit from emerging opportunities, as well as the changing landscape. Recently, changing relationships, technological advances and global demand have turned natural gas and oil resources that were previously inaccessible into lucrative opportunities. However, it is evident that opportunities bring about risks that have to be prevented or accounted for by the companies. The companies exploiting these new opportunities increase the potential risks of incurring heavy losses. The subsequent strategic, reputational and financial consequences for the companies involved can be significant. As a result, natural gas and oil companies should focus on the price as well as the quality of their insurance cover. Insurance is an efficient tool for mitigating loss and transferring risk. There are various risks that Texas oil exploration industries face which should be covered with insurances. According to Amirbekyan & Stylianos, oil and natural gas fracking activities pose risks to human health. During the fracking process, approximately 600 chemicals are used to drill out natural gas including known carcinogens and toxicants such as radium, methanol, lead, uranium, mercury, formaldehyde and hydrochloric acid. Natural gas producers engage in activities that have a negative effect on the health of the people and drinking water. The extraction and production of natural gas contaminates water and releases poisonous gases into the atmosphere.