The impact of oil spills can also ruin the infrastructure and economy of a particular area with the long-term effects being felt for decades. While the American public and the environment pay the ultimate price (metaphorically speaking), the polluter most often foots the bill for cleanup, response, and restoration after oil spills. This study compiles all the costs to be borne by BP, which include charges and expenses directly related to the spill, the various fines and penalties to be paid, reimbursements and recoveries from other parties, securities‐related charges, and hidden costs. Local people lose their livelihoods as fisheries and tourism areas are temporarily closed; the clean up costs are enormous; and tens of thousands of marine animals and plants are killed or harmed. Here the cost per tonne declines as the oil spill size increases. Spill Amount. In order to enhance preparedness and to plan efficient combat strategies, in particular in eco-sensitive regions, an operational estimation of potential impacts and costs caused by oil spills is of paramount importance . Accidentally large oil spills usually have a tremendous impact on marine and coastal environments. Seven years after the Deepwater Horizon oil spill, this study measures the “ultimate” cost of the disaster. The social and economic impact of the Gulf oil spill By Kristina Betinis 24 May 2010 As the thick crude gushing from the broken well in the Gulf … The key is keeping the oil off shore. Oil Spills: Background and Governance Congressional Research Service 1 Introduction Oil is a dominant source of energy in the United States, accounting for approximately 37% of total energy consumption in 2016.1 Its use is widespread, providing fuel for the transportation, industrial, and residential sectors. Oil spills have huge and immediate economic, social, and environmental impacts. There are three major types of costs of spills: ... Five years after the largest marine oil spill in history, the financial and environmental costs continues to climb. Economic Costs of Oil Spills One of the issues discussed in the Congressional Research report noted above is the economic cost of oil spills. As BP personnel and volunteers try to contain the oil spill in the Gulf of Mexico, the social and environmental costs to the Gulf States grow by the hour.The calamitous oil spill, which by most estimates is leaking 5,000 barrels a day, has a hefty price tag and many are wondering who will assume responsibility for liability claims. We then provide background estimates of the different sources of oil supplied in the United States, look at how other oil supply sources might respond to regulations on deepwater drilling, and consider the economic costs of these regulations. It ranges from $10,000 per tonne at the smallest spills to less than $1,000 for the very largest spills. The Exxon Valdez oil spill occurred when an oil tanker crashed onto the shore of Prince William Sound in Alaska on March 24, 1989. Once it hits the shoreline costs climb dramatically. Schatzki’s pre-filed testimony also includes references to both the Santa Barbara and BP oil spills’ role as job creating events. Cleaning an oil spill is very expensive and the costs get spread to government agencies, non-profits and the oil transport company itself. He notes that the Santa Barbara oil spill created some 700 temporary jobs to help with cleanup, while the BP spill created short term jobs for 25,000 workers. SEPTEMBER 15, 2015 -- After every major oil spill, one question comes up again and again: Who is going to pay for this mess? It contaminated 1,300 miles of coastline with 250,000 barrels or 11 million gallons of oil. BP oil spill: The economic and environmental cost, 5 years later.