Self Insurance in the Offshore Drilling Industry. : The aftermath of the Macondo.

Abstract

This thesis discusses the insurance problems raised by the self insurance of the offshore drilling companies, specifically on the fashion of ‘captive’ company. Nonetheless, it is not my intention to address every single problem exhaustively; my intention is to explain the problems, and what I consider possible solutions to the unsafe practices that are common to the offshore oil industry mainly outside Norway and United Kingdom. I will try to address a preventive method instead of a corrective method as most jurisdictions beside Norway and United Kingdom does. I also will seek to address the insurance figure (or strategies developed by them) as a solution to the self insurance haziness. I have the firm conviction that no legal modification alone will be enough to prevent or reduce a future blow-out, it is necessary to engage on the supervision of the activities, and ensure the best practices are actually followed. In order to achieve this I will –mix and mingle- the law, the private insurance practices (marine survey warranty) and the best practice (quality assurance) to obtain a product that might help reduce these problems.