What are the 3 types of credit risk?
The Dangers of Crude Oil Exposure
While it may have many uses, crude oil is extremely dangerous.
Acute or chronic exposure can lead to immediate and lasting health problems and even death.
Crude oil is known to cause birth defects, and benzene, one of its key ingredients, is a known carcinogen..
What are the financial risks of oil and gas?
Those include the financial health of the borrower, the severity of the consequences of a default (for both the borrower and the lender), the size of the credit extension, historical trends in default rates, and a variety of macroeconomic considerations, such as economic growth and interest rates..
What is a risk when using oil?
Common Risks in Oil and Gas Production
Many of these challenges are centered on the environmental impacts of fossil fuel production, which includes mining, drilling, refining, and transportation operations.
Pollution spills and environmental damage are not the only common risks faced by the energy production sector..
What is a risk when using oil?
Supply and Demand Risks
Supply and demand shocks are a very real risk for oil and gas companies.
As mentioned above, operations take a lot of capital and time to get going, and they are not easy to shut down when prices go south or to ramp up when they go north..
What is a risk when using oil?
The Dangers of Crude Oil Exposure
While it may have many uses, crude oil is extremely dangerous.
Acute or chronic exposure can lead to immediate and lasting health problems and even death.
Crude oil is known to cause birth defects, and benzene, one of its key ingredients, is a known carcinogen..
What is oil industry risk?
Credit risk is the probability of a financial loss resulting from a borrower's failure to repay a loan.
Essentially, credit risk refers to the risk that a lender may not receive the owed principal and interest, which results in an interruption of cash flows and increased costs for collection..
- Supply and Demand Risks
Supply and demand shocks are a very real risk for oil and gas companies.
As mentioned above, operations take a lot of capital and time to get going, and they are not easy to shut down when prices go south or to ramp up when they go north.
