The Risk Intelligent Energy Company: Applying a Risk Intelligent Framework to Climate Change Issues
Risk is no stranger to energy companies. Physical operations risk, regulatory risk and price risk, among others, have darkened the doors of all oil and gas companies at some point in time.
Today there is a new set of risk factors associated with the dramatic developments brought about by global climate change. These new and emerging risks feature a complex set of circumstances never before seen in the industry – a high degree of interdependency of a variety of types of risks (e.g., physical, regulatory), the potential for global implications and the broad swath cut across an entity’s entire business unit.
This article outlines a Risk Intelligent approach to help energy industry decision makers deal effectively with this new set of challenges and possible opportunities. The article, authored by Pat Concessi, a partner in Deloitte’s Global Energy Markets practice and leader of Deloitte’s global Climate Change and Sustainable Resources group, and Patchin Curtis, director in Deloitte’s Global Energy Markets practice, appeared in the January 2008 issue of Oil & Gas Financial Journal.
As used in this document, ‘Deloitte’ means Deloitte LLP (and its subsidiaries). Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.