REACT Energy

One platform to manage your global portfolios in real time

REACT’s Energy & Environment tool deploys new and emerging Earth Observation (EO) technology to meet the needs of energy companies and insurers in the oil and gas and offshore wind sectors.

Together with a variety of other data sources to integrate and complement it, to support the re/Insurance Industry in evaluating their exposure for onshore and offshore energy assets and their Environmental, Societal and Governance compliance.

REACT’S Energy & Environment tool is a powerful means to assess damage following natural catastrophes and events, including associated risks and exposure.

USERS

  • Insurance organisations
  • Reinsurance organisations
  • Upstream and Midstream Oil & Gas organisations
  • Risk Modelling companies

There are three major sectors in the oil and gas industry:

Upstream operators, such as oil rigs owners, well operators, contractors and service companies partner to identify, assess and produce various types of oil and gas. A high risk/high reward activity, as with any other marine activity, REACT works to reduce risk.

Transporters, whether by pipeline, rail, barge, oil tanker or truck, as well as businesses and partnerships engaged in storage and wholesale marketing of crude or refined petroleum products also require complex risk assessment. REACT helps analyse and monitor the activities of support vessels involved in midstream.

The final part of the oil and gas vertical, involving refining and processing of petroleum crude oil, as well as the marketing and distribution of products derived from crude oil and natural gas.

Oil Tanker
REACT Energy

Offshore oil rigs are among the most complex commercial risks to provide insurance. Exposed to a unique combination of harsh environmental conditions and complex and high-risk operational processes during drilling, extraction, and processing, the offshore industry has developed high safety standards and a low record of loss events. Still, when incidents do occur, loss quantum can be substantial.

Skytek’s REACT Energy & Environment tool captures all insurer participation in offshore energy insurance and reinsurance by supporting upstream and midstream risk assessment and reporting.

The Energy & Environment tool to energy reinsurers

  • REACT Energy & Environment tool assists in managing global and environmental risk aggregation and exposure across oil platforms, wind power plants, other energy and renewable energy assets as well the midstream sector.
  • REACT  provides monitoring and reporting capabilities for several Environmental Scores and alerts to inform insurers and organisations about the severity of a vulnerability to an asset concerning ESG compliance.
  • With overlaid weather data from the REACT platform, the exposure will be commensurate with the weather event, thus documenting accurately for ‘Loss Of Production’ insurance purposes.
  • The REACT platform provides real-time energy assets’ risk exposure information based on current threat events. REACT provides insurers and reinsurers with levels of participation in the applicable policies.
  • The insurance industry requires a worldwide view of real-time insurance risk of energy assets to determine exposures if specific scenarios such as a storm or tsunami occur. This insurer can determine by analysing the current geographical location of oil rigs worldwide.
  • REACT analyses ‘hot spots’ of risk and alerts the insurance/reinsurance organisation if their defined thresholds have exceeded.

Exploration, drilling and production bring together a large formation of platforms and subsea equipment in each oil field. Furthermore, oil rigs are frequently decommissioned and stored until demand and prices improve, depending on the oil price evolution. Due to lowering utilisation and the corresponding increase in ‘warm and cold stacking’ of oil rigs, ‘large clusters’ of oil rigs are often stored in high-density regions between activations. This accumulation generates potentially more significant exposure to insurance/reinsurance companies should an event occur. Statistics in the industry indicate that claim associated events are more frequent during the reactivation process.

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One platform to manage your global portfolios in real time

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