The oil spill has the potential to impact 7.3 million active businesses throughout Alabama, Florida, Louisiana, Mississippi and Texas, affecting 34.4 million employees and $5.2 trillion in sales volume. Of the 34.4 million employees in the five Gulf States, nearly 36% are tied to businesses located in coastal countries. At a state level, Louisiana has the highest proportion of its total employees in coastal countries. The unemployment rates in some of the Gulf States are running above the national 9.9% average. Also, BP will be fined between $1100 and $4300 for every barrel that was spilled. The tourism industry was also affected, many people cancelled their vacations due to the spill, hotels close to the coasts of Louisiana, Mississippi, and Alabama. Hotels has to cut rates and offered deals such as free golf. The economic impact of the oil spill on tourism across the Gulf Coast over a three-year period could exceed approximately $23 billion.
The total losses of the oil spill is about $30 billion, including control of well, re-drilling, third party liability and seepage and pollution costs, which exceed $1.2 billion. On June 25, BP’s market value reached a 1-year low, the company’s total value lost was $105 billion since the spill. Their holdings in BP also shrink to $27.02, which is around 54% loss of value in 2010. A month after the oil spill, the company’s loss in market value was $60 billion, which has declined 35% after the explosion.
The oil spill is also one of the worst environmental disaster that the US has faced, More than 400 species that live in the Gulf islands and marshlands are at risk, including the endangered Kemp’s Ridley turtle. In the national refuges most at risk, about 34,000 birds have been counted, including gulls, pelicans, roseate spoonbills, egrets, terns and blue herons. On 2nd November 2010, it was recorded that there were 6,814 dead animals had been collected, including 6,104 birds, 609 sea turtles, 100 dolphins and other mammals. On 1st January 2011, there were 67 dead dolphins found in the affected area of the oil spill with 35 of them premature or newborn calves.
In conclusion, the explosion has caused little impacts to social but severe impacts to the economic and the environment as oil is a non-renewable resource, which is limited in supply, and oil spill will cause huge impacts to the ecosystem, including damaging the habitats of the wildlife.
