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• 1 2016-04-24T17:54:40-07:00 Impacts on Economy 14 plain 2016-05-04T14:42:50-07:00

  The effect the spill had on the economy was first seen in the communities along the coast of the Gulf, but it was soon felt throughout the entire nation. 

  A “fishery disaster” was declared in the Gulf of Mexico by the U.S. Commerce Secretary because of the devastating economic impacts the oil spill had on commercial and recreation fishing. The area included Louisiana, Mississippi, and Alabama. It was hoped that this would help mobilize relief efforts.

  Seafood industry

  The Deepwater Horizon oil spill had a tremendous impact on the economy. Commercial fishermen, business selling seafood, and tourism businesses drastically plummeted.

  Seafood safety

  There was great concern about the safety of seafood after the spill¹. Many people were worried that the chemicals from the spill, either the oil itself or those used during the cleanup, had contaminated the fish making them unsafe to eat. Thousands of sample of seafood from the Gulf were tested for contamination and safety. Areas where oil was present was closed to fishing and were continuously tested until they were deemed safe by aerial surveys, satellite images, and water quality testing.
   

  How does seafood become contaminated³?

  • Animals eat the droplets of oil or eat other animals that ate the oil or were exposed to chemicals.
  • Chemicals can be absorbed by fish through their skin or gills.
  When in an organism, the harmful substances can bioaccumulate, or build up in their tissues. 
  
  The oil was a major concern. There are many chemicals in oil that are harmful, such as certain kinds of polycyclic aromatic hydrocarbons (PAHs)¹. PAHs can cause mutations, developmental defects, or cancer in both wildlife and humans. Other harmful substances in crude oil and the drilling fluids used to extract it are:
  • Arsenic
  • Mercury
  • Copper
  • Lead
  These substances find their way into organisms and sediments. When in an organism, the harmful substances can bioaccumulate, or build up in their tissues. 
  
  Also of concern were the chemical dispersants used in the cleanup. Corexit was the dispersant used to help cleanup the spill¹. The FDA said that this dispersant had a low potential to build up in seafood and become toxic to humans. So there was little risk to human health from eating seafood that came in contact with dispersants.
  
  Scientists tested over 22,000 samples of seafood from the Gulf¹. It was found that all of the seafood tested was safe to eat. Those results did not stop people from being afraid to buy seafood, which contributed to devastation of the seafood industry after the oil spill. Seafood from the Gulf continues to be tested.

  Fishing

  40 percent of America’s seafood comes from the Gulf of Mexico and many people along the coast rely on the industry for their livelihoods. The oil spill caused the seafood industry to plummet, resulting in hardships and uncertainties for businesses and forcing many out of the business.
   
  Fishermen in the Gulf are fishing for blue crab, fish (menhaden), oysters, and shrimp². Shrimp was one of the hardest hit. In 2008, the total revenue for shrimp from the states of Alabama, Mississippi, Louisiana, Texas, and west Florida was $366 million. In 2010, after the spill, shrimp catches from the Gulf decreased by 35.6 million pounds, which is 27%. State by state, catches decreased by
  • Louisiana: 32%
  • Mississippi: 60%
  • Alabama: 56%
  • Texas: 15%
  In Louisiana, menhaden catches decreased by 17% and oyster catches decreased by 50%.
   
  Fishermen were impacted due to the closures of many fishing areas. They were unable to take their boats out and collect fish for their income. At their largest size, a total of 88,522 square miles, the proportions of areas of closure were:
  • Alabama: 40%
  • Florida: 2%
  • Louisiana: 55%
  • Mississippi: 95%
  • Federal waters of Gulf of Mexico: 37%
  On January 24, 2011, the majority of areas were opened, but 1,041 square miles closest to the well remained closed.
   
  Catches also dramatically decreased due to sick and dying fish and destroyed habitats. It takes three to five years for a habitat to heal and be able to support life again. Techniques were used to help foster growth in habitats after they were destroyed from the oil spill. For example, bricks, fresh limestone, ground up shells, and crushed concrete were put in the water to help foster growth in oyster beds.
   
  Oysters were harmed by a technique used to keep oil from reaching Louisiana estuaries, or river inlets. More freshwater than usual was released into estuaries to keep the oil away, but this decreased salinity in the oyster habitats that is vital to their survival.    

  Marinas

  Marinas were also impacted negatively by the spill. They were selling much less gas to fishermen than usual. Because there were fewer opportunities due to closures and their catches decreased in size, it often was not worth it to buy fuel and take the boat out for what catch they would get.
   

  “$300 worth of fuel. $100 of other expenses and I pay the deckhand, I got $150 on a perfect day. It don’t pay to go out.”
  -George Barisich, oyster fisherman

  Markets

  Because of fishermen going out of business, the loss of fish and other seafood, and the decrease in demand of seafood, many seafood markets went out of business. It could be very difficult for these markets to come back. A survey by the Louisiana Seafood Promotion Board reported that 70% of consumers were concerned about the safety of seafood and that 23% reduced the amount of seafood they ate.

  Tourism

  Recreational fishing is a major source of income for tourism along the coast of the Gulf. Many businesses tied to tourism, such as hotels and restaurants, were harmed by the spill. Fishermen were not coming because so many areas of water were closed to fishing. Restaurant prices skyrocketed due to the lack of seafood harvest, which was seen as far away as New York. There were thousands hotel cancelations in the area, because visitors were afraid of the oil.

  Economic benefits

  There were some short-term benefits from cleanup efforts. Cleanup workers and the reporters covering the event stayed in hotels and ate at restaurants replacing some of the lost business. The cleanup also helped companies who specialize in the materials used in the cleanup such as the booms and chemical dispersants. Those with hazardous material training also felt a boom in business.
  
  
   
  1. Graham, L. J., Hale, C., Maung-Douglass, E., Sempier, S., Swann, L., & Wilson, M. (2015). Oil Spill Science: the deepwater horizon oil spill's impact on gulf seafood. Gulf of Mexico Research Initiative. Sea Grant.
  2. Upton, H. F. (2011). The Deepwater Horizon Oil Spill and the Gulf of Mexico Fishing Industry. Analyst in Natural Resources Policy . Congresional Research Innitiative.