How did the BP spill affect the economy?
How did the BP spill affect the economy?
Results indicate that the total economic impacts for the period 2010–2020 of foregone commercial fishing revenues and recreational fishing expenditures as a result of the Deepwater Horizon oil spill are a loss of over 25,000 jobs, $2.3 billion in industry output, $1.2 billion in total value added or gross regional …
How do oil spills affect the economy?
Economic impacts of oil spills generally include cost of clean-up and compensation, damage to agricultural lands, fishery and wildlife.
What were the environmental and economic effects of the BP oil spill in the Gulf of Mexico?
The oil spill contaminated more than 1,100 miles of coastline, at least 1,200 square miles of the deep ocean floor, and 68,000 square miles of surface water. Estimates of lost tourism dollars were projected to cost the Gulf coastal economy up to $22.7 billion through 2013.
How did the BP oil spill affect GDP?
The six-month moratorium on deep-water drilling may cut U.S. oil production by around 3% in 2011 and cost more than 3,000 jobs, according to J.P. Morgan’s energy analysts. Commercial fishing in the Gulf is also likely to suffer, but that’s only about 0.005% of U.S. GDP.
How did the BP oil spill affect businesses?
The U.S. Travel Association estimated that the economic impact of the oil spill on tourism across the Gulf Coast over a three-year period could exceed approximately $23 billion, in a region that supports over 400,000 travel industry jobs generating $34 billion in revenue annually.
What industries were affected by the BP oil spill?
The economic impact of the oil spill will be concentrated in Gulf Coast communities. Of the five states affected—Texas, Louisiana, Alabama, Mississippi and Florida—the two hardest hit are Louisiana, with its heavy dependence on fishing, aquaculture and oil extraction, and Florida, with its tourist industry.
How did the oil spill of 2010 affect the economy?
And while long-term damage estimates vary, a new study published in the Canadian Journal of Fisheries and Aquatic Sciences determined that over seven years, the oil spill could have a $8.7 billion impact on the economy of the Gulf of Mexico including losses in revenue, profit, wages, and close to 22,000 jobs.
Did BP lose business after the oil spill?
BP was worth more than $180 billion at the time of the Gulf oil spill and is still one of the largest companies in the world. But it was on the brink of collapse after the spill, and few other companies could afford the costs BP incurred.
How did the BP oil spill affect the seafood industry?
The Deepwater Horizon oil spill has directly harmed the fishing industry through closures and changes in seafood demand. Large areas of federal and state waters were closed to fishing as a precautionary measure to ensure the safety of seafood.
What effects did the BP oil spill have on the environment?
The scientists concluded that the Deepwater Horizon oil spill killed thousands of marine mammals and sea turtles, and contaminated their habitats.
How much did the BP oil spill cost taxpayers?
BP wrote off the cost of its $32 billion cleanup effort after the spill, costing American taxpayers roughly $10 billion. However, the Justice Department reached a $4 billion criminal settlement with BP over its role in the deaths of 11 workers on the oil rig when it exploded.
What causes BP oil spill?
Anthropogenic causes – including accidental oil spills (such as the recent BP oil spill in the Gulf of Mexico) as well as leaks and spills due to a large variety of human activities related to oil refining, handling and transport, storage and use of crude oil and any of its distilled products.
What were the long term effects of the BP oil spill?
Marine mammals. A sharp increase in the number of bottlenose dolphin deaths following the incident has concerned scientists.
How was the BP oil spill impacted the nations economy?
The BP oil spill has hammered the fishing and tourism industries along the Gulf of Mexico. But it appears the economic damage to the rest of the nation will be limited. Analysts say the spill will reduce economic growth by only about one-half of 1 percentage point this quarter, and even less during the second half of the year.
What caused the BP oil spill to occur?
Oil Spill Pollution Causes. Such natural oil spills may occur in oceans, due to eroding of sedimentary rocks from the bottom of the ocean (the effect may be similar with that of an accidental oil spill from human drilling in oceans such as the recent BP oil spill from the Gulf of Mexico ).
