This is big. When Nationwide Casualty Insurance Company, a large US commercial and personal insurer said the risk involved in underwriting fracking operations is “too great to ignore,” the gas industry’s fangs came out.
Energy-In-Depth spokesperson, Simon Lomax, emailed Associated Press reporter Rik Stevens, snarking, “Practical implications aside, the fact that the company would send out a statement this reckless, and this uninformed, should tell us a lot. For starters, it tells me that I won’t be buying home and car insurance from this company.”
Nationwide‘s “recklessness” does say a lot, but not what Willy Loman, er… Simon Lomax would have us believe. The insurer simply cannot afford to clean up the gas industry’s toxic messes. Maybe if producers are forced to self-insure, in the same way they are encouraged to self-regulate, they’ll be more careful. I understand that US shale gas production is already the most regulated in the world, better than OPEC nations, but when our air, land, water and health are routinely damaged by a single industry, and DEP enforcement is feeble at best, you certainly can’t blame Nationwide for doubting that gas industry assurances will cover it. Insuring fracking operations is too much of an unknown. (more…)
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