Economic Effects of Oil Spill

Oil spills not only affect the world environmentally but also economically. The economic impacts are directly or indirectly related to the environmental impacts of oil spills. But, the economic impacts of oil spills are not much talked about as the environmental impacts are. Gasoline prices in the United States for citizens at some point in our recent history have been up to almost five dollars per gallon. The change in gas prices may bring about a change in the risks people are willing to take both on the stock market and in their day-to-day spending. Still, there are people who claim that the current oil prices are not yet close to impacting the United States’ economy, while there are those who promise there will eventually be noticeable strain. This paper will discuss the economic effects of both oil spills and fluctuating gas prices in the United States.

On April 20, 2010 an explosion occurred aboard the Deepwater Horizon, an off shore BP oil rig about 52 miles southeast of Venice, LA. This explosion caused the deaths of 11 platform workers and injuries of 17 others. In addition a massive ongoing oil spill that is estimated to have released about 20,000 to 40,000 barrels of oil per day in the Gulf Coasts waters. The exact spill flow rate is uncertain – in part because BP has refused to allow independent scientists to perform accurate measurements – and is a matter of ongoing debate. The resulting oil slick covers a surface area of at least 2,500 square miles (6,500 km2), with the exact size and location of the slick fluctuating from day to day depending on weather conditions. Scientists have also reported immense underwater plumes of oil not visible at the surface.

Experts fear that the spill will result in an environmental disaster, with extensive impact already on marine and wildlife habitats. The spill has also damaged the Gulf of Mexico fishing and tourism industries. There have been a variety of ongoing efforts to stem the flow of oil at the wellhead....