The report also found a gap between the importance of these risks and how well they are managed.The findings, detailed in the Marsh Oil and Gas Risk Report: 2008, include the results of a survey of NOCs conducted during the Marsh National Oil Companies' conference in Dubai earlier this year. More than 400 delegates were asked to rate the relevance of risks identified by the World Economic Forum and how effectively they felt they were managed by their firms.
The participants ranked the top five risks, in order, as:
§ Availability of oil and gas resources
§ Recruitment and retention of a qualified workforce
§ Energy price volatility
§ Environmental impact of operations
§ Political/regulatory risk issues
The survey found the overall level of risk facing the industry remains high. Marsh's NOC Risk Index score rose from 4.49 out of a possible 6 in 2007 to 4.51 in 2008. By contrast, the Risk Management Effectiveness Index score was 3.8. On the topics, availability of oil and gas resources as a risk issue was rated 5.3 out of a possible 6. It was also the top-ranked risk in 2007 but with a rating of 4.9.
Jim Pierce, Marsh's Global Energy Practice Leader, said: "It is no surprise that our survey has found that National Oil Companies are facing a riskier business environment. However, of more concern is the gap between the importance of the risk and how well it is managed. As the custodians of 90% of the world’s oil reserves, it is vital that these companies develop strategies that deal effectively with most important risks facing their business.