Marsh tells NOCs to prepare for price volatility
Insurance broker says NOCs face risks from oil price fluctuations
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Marsh, the insurance broker and risk adviser, has warned National Oil Companies (NOCs) to prepare for ongoing price volatility as the global economy emerges from recession.
In a statement the company said that, due to their long planning cycles, NOCs face significant business risks from short to medium term oil price fluctuations.
“As major economies emerge from recession, there is significant possibility that oil prices could again increase dramatically. This would leave NOCs with difficult decisions to make about where to focus their investment,” Jim Pierce, chairman of Marsh's Energy Practice said.
“Natural gas also remains mired in a depressed pricing environment. As oil prices rise, we may witness a growing disparity between these two finite resources.”
Marsh also said that it will be addressing these issues at its ‘NOCs into the future: the Challenges and Opportunities ahead’ conference being held at the InterContinental hotel in Dubai between 22-24 February 2010.