Home | News & Events

EQECAT U.S. Offshore Energy Model Updated Based Upon Data Produced During 2008 Hurricane Season

July 28, 2009

Oakland, California

EQECAT, Inc., a subsidiary of ABSG Consulting Inc. (ABS Consulting), and the leading authority on extreme-risk modeling, said today that an analysis of wave height and damage data produced during the 2008 hurricane season, especially during Hurricane Ike and relating to assets in the U.S. Gulf of Mexico, has enabled the refinement of hazard and vulnerability modeling in EQECAT’s U.S. Offshore Energy Model (EQECAT’s OEM).

The updates were based upon data collected from various sources, including energy operators in the U.S. Gulf of Mexico, the National Oceanic and Atmospheric Administration’s National Data Buoy Center, and the U.S. Department of the Interior Minerals Management Service.

Refinements to the model reflect high resolution wave-model analysis conducted during a hurricane; changes to energy operators’ extra expense vulnerabilities, including re-drilling of wells, “plug and abandonment,” and control of wells; and physical damage vulnerabilities for fixed platforms, as well as floating platforms, and pipelines.

“Modeling wave hazard is a critical model component as high waves are a key driver of loss to upstream energy infrastructure,” said James Webb, EQECAT’s offshore energy product manager. “The wave-related destruction from Hurricane Ike -- a relatively moderate wind speed yet very broad event -- has led us to raise the standard for wave modeling.” The wave model is a function of complex hazard elements, including wind speed, storm parameters, water depth, wind duration, and “ocean fetch” -- the area where waves are generated by wind. “The study of past hurricanes shows a weak correlation between the spatial distribution of wind and wave hazard intensities. A refined wave model is therefore essential to measuring risk reliably,” he said.

“EQECAT is dedicated to continually updating its models to respond to the developing needs of the marketplace,” he said. “The current updates to EQECAT’s OEM will help users to assess and manage offshore energy risk and provide a reliable resource for efficiently modeling insurance policy structures.”

EQECAT’s OEM is part of the WORLDCATenterprise™ catastrophe management software suite. The EQECAT OEM was launched in May 2007 in response to market demand for a catastrophe model that could estimate hurricane risk based upon the customary insurance coverage practices in the offshore energy market, such as control of wells, removal of debris and other related exposures. The model also correlates damage and loss for offshore and onshore risks written on a single policy.

In developing EQECAT’s OEM, EQECAT combined its extreme-risk modeling expertise with the offshore experienceand the risk management expertise of ABS Consulting, which provides extensive services not only to energy companies but also to the United States Government.

For additional information about EQECAT risk models, please visit www.eqecat.com, or call +1-510 –817-3100.

EQECAT Software Enables Clients Worldwide To Assess, Manage Wide Range of Risks

EQECAT and its parent ABSG Consulting Inc. (ABS Consulting) provide services to the global property and casualty insurance industry, major multinational corporations and financial institutions. EQECAT is known as the technical leader and innovator in the development of analysis tools and consulting services to quantify exposure to natural and man-made catastrophic risk.

Through its extreme-risk modeling software platform, WORLDCATenterprise™, EQECAT enables clients to assess and manage potential damage and loss from wind, earthquake, flood, wildfire, and terrorism, among other perils. WORLDCATenterprise™ includes 177 natural hazard software models for 89 countries spanning six continents.

EQECAT was founded in 1994 and is headquartered in Oakland, California. For additional information, please visit  www.eqecat.com and www.absconsulting.com.