ECONOMICS CASE STUDY

ON

ENVIRONMENTAL ISSUES

OIL SPILL IN THE GULF OF MEXICO

Made by :

Abhilekh singh

II BBA – A reg no. - 0911504

 Defining the case

What is oil spill..??

An oil spill is a release of a liquid petroleum hydrocarbon into the

environment due to human activity, and is a form of pollution. The term is
basically refered to oil spill in a water body mainly oceans(marine), where
oil is released into the ocean or coastal waters. Oil spills include releases
of crude oil from tankers, offshore platforms, drilling rigs and wells, as well
as spills of refined petroleum products (such as gasoline, diesel) and their
by-products, and heavier fuels used by large ships such as bunker fuel, It
mainly results in heavy environmental problems and consumes long period
of time and money for its cleaning up.

Oil also enters the marine environment from natural oil seeps. Most human-
made oil pollution comes from land-based activity, but public attention and
regulation has tended to focus most sharply on seagoing oil tankers.

The oil leakage in the gulf of Mexico is such a case. It is amongst the
greatest disaster taken place that has created heavy problem for the
environment.
Scope of the issue

The oil leak in the gulf of Mexico can seriously cause great damage to the
environment if no serious action or steps are taken towards its control. The
oil reaching to the surface has been spreading at a wild rate due to bad
climatic conditions, and it can result in heavy mess and pollution if it
reaches the coastal regions.

According to the specialists and engineers quick steps should be taken to

manage the spilled oil

Identification of the cause of the problem

The cause for the oil spill in the gulf of mexico could be determined by the
specialists after an extensive research work. After a time taking search for
the reason it came to the notice of the engineers that the cause of the leak
was from a blown out oil well that lied on the sea bed which used to carry
raw oil to the refinery on the surface.

The oil containing well lying under water was blown away, the reason for
the cause was due to some technical fault that caused spark in the tanker
containing oil which resulted in explosion of the pipeline. With the burst of
the pipe the oil started spilling at a great rate that gradually reached the
surface and eventually covered hundreds of square feet of the sea surface
within few days.

Analysis :

The oil spill in the gulf of mexico is one of the greatest disaster that the
mankind has ever witnessed.
The Deepwater Horizon drilling rig, operated by BP Oil and owned
by Transocean Ltd., exploded and started burning. Eleven rig workers were
never found and are presumed to have died. it has been found that the oil
has been spewing from wellhead, 5000 feet beneath the surface of the gulf
at a rate of around 42000 gallons per day. The satellite images of leak have
brought to the notice that the crude oil floating on the surface of the gulf is
drifting northwards towards the coast of Louisiana, Alabama and Florida.

Its one the worlds biggest man’s creation mistake that has left a drastic
impact on the environment and has resulted in demise of marine as well as
land animals. The slick on the surface of water has gradually covered a
large portion of the surface and is making the sunlight to pass through its
thickness which is proving to be fatal for the marine plants and animals. It
ha seven resulted in killing of thousands of fishes, turtles, crabs etc. who
have come in contact with the slick.

Alternative solution

Cleanup and recovery from an oil spill is difficult and depends upon many
factors, including the type of oil spilled, the temperature of the water
(affecting evaporation and biodegradation), and the types of shorelines and
beaches involved.

There have been several steps taken by the American government towards
finding an accurate solution to the disaster caused. It has been investing
enormous money for controlling the discharged crude oil on the sea
surface.

The hope: that they can burn off at least some of the leaking crude before it
reaches the gulf coast.

"No populated areas are expected to be affected by the controlled burn

operations, and there are no anticipated impacts to marine mammals and
sea turtles," said the Coast Guard in a statement. "In order to ensure
safety, the Environmental Protection Agency will continuously monitor air
quality and burning will be halted if safety standards cannot be maintained."

It is an inherently risky move, said engineers, but less risky than the
alternatives.

More than 275 vessels, including skimmers, tugs, barges and recovery
vessels, are being used.
Skimmers, which skate over the water, brushing up the oil are also being
employed and more than 90,000 barrels of oil-water mix have been
removed.
Around 190 miles of floating boom are being used to stop oil reaching the
coast. A US charity is even making booms out of nylon tights, animal fur
and human hair. Hair donation is also being done from different part of the
world for creating special booms that are laid on the shores which can soak
the oil.
Dispersant chemicals, rather like soap, are being sprayed from ships and
aircraft in an effort to help break down the oil - which is also degraded by
wind and waves
New underwater technology aimed at stopping crude oil rising to the
surface at the site of the leak has had some success.

Implication and its affect.

Leaking of oil beneath the ocean can cause havoc for the environment and
the surroundings.

The oil spilled over the surface of water can spread at a great rate with the
help of wind and water currents. Even a single gallon of oil can cover over
hundred of square feet in no time.

When oil starts mixing in water, it can change composition and becomes
what's known as "mousse". This is a sticky substance that clings even
more to whatever it comes in contact with. Many marine animals don't know
to avoid a slick and some fish may even be attracted to it as it can
resemble food.Its effect on marine animal is proving to be fatal. The sea
animals coming in contact with the slick are becoming vulnerable and
hence leading to death in a short time.

The slick even reaching the shore can create trouble to the population
residing there as well as to the animals.