by Mike Davis

Created on: May 07, 2010

The initial impact of the BP oil spill has been a suspension of all fishing and shrimping within the Gulf of Mexico. BP's response has been to use toxic chemicals which are designed to bond to the crude oil and drag it to the ocean floor. Long term effects of the chemicals used to disperse the oil are unknown since they have never been used on this scale before. Even if these turn out to be a "magic bullet" that acts to clean the surface of the ocean and prevent landfall, there is no way of knowing what the long term effect to the floor of the ocean will be.

Currently BP has bought 1/3 of the world's supply of dispersal chemicals, calling into question how long the effort to disperse the oil can continue. Currently the well is estimated to be spewing 210,000 gallons of oil each day. Since the dispersal agents are themselves known to cause health problems in humans, there is no way of knowing how serious the effect will be on marine life. Dispersanl use during the Exxon Valdez spill was blamed for respiratory problems in human beings.

The heaviest immediate economic impact will be felt in the states of Louisiana, Mississippi, and Florida which have fisheries in the path of the oil spill. Different species will not be affected equally, for instance and clam can seal themselves off to some of the effects of the environmental damage surrounding them, while fish have no such defense. 

The ban on fishing in the affected area is likely to remain in place until the source of the spill is capped. Currently an effort is being made to cap the spill by the use of a 100 ton containment dome. This has never been attempted before, so it is difficult to determine the odds of success. The dome would stop the leak, and pump the oil to a waiting tanker.

BP's CEO, Tony Hayward, has stated that BP will pay for "legitimate and verifiable" claims of economic loss directly related to the spill. Spring and summer are the peak times for fishermen in the Gulf region. Even if the leak is closed soon, cleanup efforts are likely to continue for some time in one of the richest fishing areas for America. 

While the impact on the Gulf fishermen is entirely negative, fishermen from other parts of the nation are likely to see an increase in sales and prices. The removal of a major fishing area does not alter the demand for this product, so decreasing supply will cause prices to increase. 

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