Beware of risk factor in race for oil

Companies planning to exploit oil and gas in countries where conflict is an everyday occurrence aren’t fully thinking about the risks, a security advisor has warned the industry. With firms […]

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By Vicky Ellis

Companies planning to exploit oil and gas in countries where conflict is an everyday occurrence aren’t fully thinking about the risks, a security advisor has warned the industry. With firms looking further afield to find prized fossil fuels, risks cannot be ignored, said James Hopkinson of Blue Hackle, which operates in higher risk locations like Afghanistan, Iraq and Yemen.

Speaking at FirstEnergy’s Global Energy Conference in London yesterday, the Director of Client Services said that more nations were being pushed into “complex environments” like Afghanistan in the race for natural resources.

Mr Hopkinson told ELN that while there is a focus on “bottom line figures, profit and loss” in the industry, “I think there are some bigger influences around understanding those figures before you commit. I’m not sure people sit down and do it in a systematic way.”

Being seen as “takers, not givers into a community” could damage long-term plans for extracting oil in turbulent territories, he added.