Energy: Oil and gas

Oil and gas companies across the energy sector are under pressure. Fueled by the decarbonization imperative, upstream and downstream energy companies are changing their energy mix.

Top risks facing oil and gas companies

Oil and gas companies listed supply chain and geopolitical risk as the top two risks to achieving their clean energy strategy in our 2025 Global Clean Energy Survey^[1].

To succeed, oil and gas companies need to balance the current challenges with long-term goals. And it starts with building a future-ready risk management strategy.

Forward-thinking leaders in the oil and gas sector are finding strength in specialty.

Upstream energy

The energy transition is putting pressure on upstream oil and gas companies to reduce carbon emissions, pushing operations into challenging geographies and driving investment in new technologies. But valuable assets are at risk.

From exposure to volatile climate and weather-related events to geopolitical tensions, changing demand for oil and gas, climate-related lawsuits, stranded assets, supply chain volatility and regulatory scrutiny, the risk of property damage, business interruption and liabilities are changing.

But for forward-thinking upstream oil and gas leaders who stay ahead of their risks, the opportunities for growth are strong.

Downstream energy

Downstream energy leaders are battling conflicting priorities, including:

• Changing global demand for refined petroleum products
• Supply chain volatility
• Growing regulatory and sustainability constraints
• Increasing investment in cleaner technologies

These downstream energy risk exposures are testing the insurance market’s risk capacity. The network of assets is expanding into new territories, contributing to an uptick in third-party risks across interconnected risk profiles.

Amid changing risks, building a smarter risk management strategy can help downstream oil and gas companies make strides toward a sustainable future.

A smarter approach to oil and gas risk management

Balancing quantitative data and analytics with qualitative specialist risk management and insurance insights is critical in building a robust risk strategy.

Risk managers must think creatively. Where insurance markets have limited appetite for traditional property and casualty risks, alternative risk solutions can help oil and gas companies protect assets and fuel growth objectives.

Footnote

1. Global Clean Energy Survey 2025 Return to article undo