The global offshore energy and shipping sectors are under greater than expected threat from climate change as extreme weather becomes more commonplace, according to a new report by the speciality (re)insurance group Chaucer.
The new report ‘Oceanographic climate change: The impact of ocean-based climate change trends’, said that the offshore energy sector – particularly assets such as oil platforms and wind turbine installations – is on course for a material change in risk exposure from worsening extreme weather conditions including changes in storm patterns.
The offshore facilities may not be designed to sufficiently withstand such environmental challenges. It requires the energy industry and the insurance sector to come together to work to understand these risks better.
A media release by Chaucer said extreme weather and tropical storms besides causing unforeseen damage, can also restrict access to sites after the event, hindering maintenance and repairs, increasing costs and making it hard to source skilled labour, particularly in regions not previously prone to such disruptions.
Chaucer said it is vital for manufacturers to evolve their designs to withstand the potential for greater frequency and severity of catastrophic weather events.
The report said the shipping industry is facing more threats from climate change than previously anticipated, including more severe storms, sea level rises and coastal erosion. These include:
- More frequent severe storms causing blockages and bottlenecks at ports, leading to ships being out at sea longer
- A greater number of severe storms could also lead to more containers falling overboard from vessels
- Sea-level rises leading to more unnavigable waterways and damage to lower-lying ports like Rotterdam and those in Southeast Asia
- Coastal erosion leading to increased risk of grounding
- Increased glacial melt leading to a heightened risk of ships colliding with icebergs
- Ocean salinity changes making ships less stable and needing to be redesigned.
Oceanographic climate change could also see new shipping routes developing. For example, the Northwest Passage above North America could become a viable commercial route. Canada and the Great Lakes could see greater use as routes into North America, while the cruise industry could also expand its footprint across the poles. M