The westernmost peninsula of Eurasia, Europe is bordered by the Arctic Ocean to the north, the Black Sea to the southeast, the Mediterranean Sea to the south and the Atlantic Ocean to the west. The economic and political association of 27 European member states, the European Union (EU) has developed a single market through which a standardized system of laws apply, and under this union, sixteen member states have adopted the euro as its common currency. In 2006, the EU had a gross inland energy consumption of 1,825 million tonnes of oil equivalent, with nuclear energy as the primary source of energy produced in the region. Currently, the EU imports around 82% of its oil and 57% of its natural gas resources.
Risk Management is the identification and assessment of any risk associated with a project. In understanding the risks associated, organizations can prepare and minimize the impact of its actual occurrence. In oil and gas, risk can include uncertainty in financial markets, change to commodity prices, project failures, accidents and even natural disasters. Risk management is not just about minimizing impact, it also includes maximizing opportunities caused by external factors.