Diversifying Energy Industry Risk in the Gulf of Mexico

David Dismukes. Funded by the U.S. Department of the Interior, Minerals Management Service and the LSU Coastal Marine Institute. Project Funding: $165,302.

This project proposes to investigate how the energy industry diversifies its risk exposure in general in the GOM, with a particular emphasis on insurance-related issues. Risk mitigation is secured through the use of various strategies, including but not limited to the following: the private insurance market, energy supply portfolio management, alternative energy development, and non-traditional markets such as hedge funds.

The purpose of this study is to examine the main issues associated with the energy industry's risk diversification strategies, with a particular focus on the implications that these strategies will have not only on major oil and gas companies, but also smaller independents and Gulf Coast communities.

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