contamination of ground water and the fact that fracking is seen to be a new technique.
“Fracking is built upon a significant amount of experience,” says
Drinkall. “This kind of drilling has been going on for a long while. “When we review a risk we look to ensure that such concerns are being
mitigated. We need to make it clear that the risks are at a level that is acceptable, both for the environment and to an insurer. Because of the experience we have at Infrassure, we can do that with a degree of conviction. Otherwise you are just getting the information from outside, without having the knowledge yourself.”
While the exact levels of gas that can be extracted through hydraulic
fracturing can at present only be estimated, this method does provide another valuable source of fuel at a time of great uncertainty over the amount of fossils fuels left on the planet. With sizeable shale gas deposits believed to be present across the US, Russia and Europe, the potential for development of the industry is substantial. That in turn could provide significant opportunities for insurers, Drinkall claims.
“This has the potential to be a huge growth industry,” he says. “The US is leading the way and they are the ones who have the biggest industry
expertise. They see it as a possible way for them to stop being an importer of gas, and to become an exporter instead.
“As this industry grows so will the infrastructure that supports it, and
that will provide opportunities for insurers, such as Infrassure, to provide expert coverage. Pipelines, for example, are something that always needs to be investigated extremely seriously by insurers.”
The growth will not come without challenges, the biggest of which will be
the fluctuating price of gas. “This will need to be weighed against how much money people are going to be willing to invest in the industry,” says Drinkall.
“With sizeable shale gas deposits believed to be present across the US, Russia and Europe, the potential for development of the industry is substantial”
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