The oil and gas industry has been a significant source of revenue in New Mexico for many years, and the state stands out as one of the leading producers of crude oil and natural gas in the United States. The growth of this industry, however, comes with risks that make NM oil and gas insurance a necessity not only for roustabouts on the oilfields but also for downstream handlers, including truckers, distributors and retailers.
The industry surrounding petroleum and natural gas is fraught with risks from initial extraction to final distribution to customers. This is particularly true given the instability of economic factors and the continuous evolution of extraction technology to meet demands for more efficient, higher-volume production not only in established oilfields but also in increasingly extreme environments. Equipment failures, property damage from weather or other environmental factors, interruptions in business and third-party claims can become extremely costly for petroleum and gas companies that have no buffer.
A sound NM oil and gas insurance package is the best defense against the volatility of the oil and gas markets and serves as a safety net for workers and equipment alike. This policy can help to protect stakeholders in all aspects of the petroleum and gas sectors from the risks of an ever-changing industry.