Analysis: Uncertain Energy Policy Among Key Risk to Upstream O&G

Uncertain energy policy poses a key risk to upstream oil and gas companies worldwide, according to the Ernst & Young Business Risk Report 2010. Uncertainty, which was ranked second in Ernst & Young’s previous report in 2009, has grown as a risk as direction of energy policy have been prolonged, partly by the vague outcome of the Copenhagen climate conference in December 2009 and partly by the inability of the U.S. to adopt a clear energy policy. Policy decisions worldwide have further been complicated by the Gulf of Mexico oil spill.