BP spill highlights event risk The recent disruption of crude oil supply from BP's Alaskan oil field should encourage end users to take better care of their exposure to event risk, say consultants. Last month, a corroded oil pipeline in Alaska forced BP to shut half of its Prudhoe Bay oilfield - North America's largest. This will reduce production from the facility by an estimated 200,000 barrels a day, which is 4% of US crude oil production. The price of Nymex front month WTI rose from around $73/bbl to over $78/bbl with the news, although war in the Middle East was also a price factor. While fuel prices did not spike dramatically, this supply disruption has highlighted how a tightly balanced global oil market is leaving customers vulnerable to event risk, says Shannon Burchett, president and CEO of energy consultancy Risk Limited

Click here to download full article