Business Risks
Below are two business risks typically found within the energy sector. Certainly not all-inclusive, they illustrate two significant business hazards, that of regulatory risk and geopolitical risk. Legal risk has a very similar flavor to that of regulatory or geopolitical risk.
Regulatory Risk
Increasingly, regulatory risk is taking on a larger role in the energy industry. Whether a firm is an independent refiner or a power plant, regulation can and does have an impact on quarterly earnings. A recent example is that of the Gulf of Mexico drilling moratorium on oilfield service sector firms. While the moratorium has been lifted, the effects are still being felt. Other countries, all over the globe, enact numerous policies that have ...
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