BP Oil Spill: The Fallout and Who’s Affected…Including You

May 27th, 2010. By Kristine B

With an environmental disaster as large as BP’s oil spill, no doubt many people are affected. Some are affected directly. Others, however, are affected indirectly and might not even realize it. This week, Pleading Ignorance gives some examples of people who might have no idea that this environmental disaster has affected them. We look at property damage, business losses and other effects of the oil spill.

BP Oil Spill + Property Damage + Property Ownership/Rental

Obviously Affected

Anyone in real estate knows it’s all about location, location, location. Most often, the choicest locations—particularly at the height of rental and time-share season—involves a beachfront somewhere, and that beachfront comes at a high price. Unfortunately, the BP oil spill has given new meaning to the phrase “tar beach” for folks who could afford a beachfront stretch. With oil encroaching upon their waterfronts, there’s property damage afoot. That damage could cost these homeowners for repair, maintenance and replacement of anything on the property damaged by oil, not to mention the cost of cleaning up.

The other damage that homeowners suffer is the loss of enjoyment of their property—their own, and that of others if they were planning on renting out their home. After all, who wants to enjoy the beach when the beach is covered by oil? So there’s potential loss of income, too.

Finally, there’s the loss in property value to consider. Try sticking a “for sale” sign up on beachfront property right now in, say, Louisiana or Alabama. If folks can’t use the beach, they sure aren’t going to come to an open house—let alone fork over a downpayment.

Possibly Affected

Even if you don’t live along the beach, if you live close to the beach—say, a few blocks off—you’ll also be affected by the oil spill. You may not suffer property damage, but proximity to the beach means that you enjoy the beach as one of the perks of your location. That’s a perk you probably still paid a hefty sum for. Because of the oil spill, you don’t have the option of enjoying the beach anymore. Nor would anyone you’d hope to sell your place to. And that adds up to a decrease in property value. 

People who rent long-term along the beach or near the beach are affected, too. Although they don’t suffer the same property damage as homeowners, they probably pay high rent for the sake of living near the coastline. Like homeowners, they no longer have use of the beach, something they pay for.

Basically, if part of your cost of residence involves use of the beach, you’re no longer getting what you paid for, through no fault of your own.

Remotely Affected

For those folks who vacation on the Gulf Coast each summer, you may have already paid for—or at least put a downpayment on—a rental. But chances are, you’ve been re-thinking that trip (refund!). People who now find themselves without summer vacation plans because of the oil spill will now face premium pricing on trips to other beach locales because it’s now later in the booking season and it’s a supply and demand issue; there are fewer beach rentals available that have not been affected by the spill, so prices head upward. 

BP Oil Spill + Business Losses

Obviously Affected

Anyone who relies on the seafood industry or on the tourism industry is obviously affected. Fishing in the area has been suspended, which puts workers at risk of losing their jobs. The price of seafood will likely go up. Likewise, tourists are unlikely to flock to a destination in which the beaches are covered in oil and they can’t use the water for water sports or other summer fun. This means the hotel industry, the restaurant industry, tour operators and anyone who sells or rents boats or other watercraft are affected by the oil spill. Think that’s not a lot of folks? Here’s a “typical” list of beach area businesses or occupations that’ll feel the pinch if vacationers stay away:

Hotel Operator, Motel Operator, Restaurant Owners, Hotel/Motel Housekeeping, Hotel Food & Beverage, Waiters, Waitresses, Bartenders, Barbacks, Bussers, Dishwashers, Sommeliers, Hotel Catering/Banquets, Hostesses, Maitre d’s, Chefs, Sous Chefs, Pastry Chefs, Cooks, Line-Order Cooks, Hotel Purchasing Departments, Concierge, Hotel Front Desk Clerks, Hotel Security, Hotel Engineering, Lifeguards, Spa Staff, Manicurists, Beauticians, Masseuse, Fishermen, Shrimpers, Jet-Ski Operators, Parasailing Operators, Waterskiing Operators, Sailing Rentals, Kayak Rentals, Charter Boat Rentals, Fishing Excursion Operators, Real Estate Agencies–those that sell and those that manage rentals, T-shirt Vendors, Arcade/Boardwalk Vendors, Bike Rentals, Ice Cream Shops, Bait & Tackle Shops, Watersports Equipment Stores, Novelty Shops, Souvenir Shops, Tour Operators, Golf Country Clubs, Public Golf Courses, Miniature Golf, Driving Ranges…

I’m sure there’s more, but as you can see, it takes an army—both visible and behind-the-scenes—to make your week or two at the beach heavenly. And that entire army’s going to be affected by the oil spill.

Possibly Affected

There are others who supply these industries or are linked to the industries who may be affected as well. Attorney Wes Pittman spoke about a man who runs a magazine about water sports in Florida. His advertisers have pulled their advertisements because they don’t want to waste money advertising products that can’t be used. This man is now worried that he could lose his magazine, all because of the oil spill. He may be eligible to file a lawsuit linked to the oil spill.

Businesses that are linked, even peripherally, to others that rely on the water may lose money this year. 

BP Oil Spill + Workers and Volunteers

Obviously Affected

Eleven men who were on the BP oil rig when it exploded are still missing and presumed dead. Others may have been injured in the accident. Lawsuits have been filed by some of the families of the men who are presumed dead.

Possibly Affected

Workers and volunteers who have and will continue to work heroically to try to clean up this mess face the potential of personal injury. People who helped clean the 1989 Exxon Valdez oil spill reported suffering headaches, coughing, respiratory infections, sinus infections and rashes. And the Valdez after-effects remain with some workers even today—some 10+ year after the fact.

Clean-up crews should wear proper safety gear and report any possibility of chemical poisoning. Furthermore, working on land affected by oil can be hazardous because of slippery conditions.

BP Oil Spill + Wildlife

Forever Affected

It’s incalculable how much damage has been done to the smallest and most vulnerable victims of the BP Oil Spill—the wildlife living and/or traversing the region. Various maps online show the range of area in which turtles might be affected; or the various of types of birds endemic to the region. It’s obvious that marine life has been affected—but no telling how extensive the damage is yet, and no telling if we’ll ever fully know the damage that’s been done.

Tags: BP, BP Oil Spill, Pleading Ignorance

This was posted on Thursday, May 27th, 2010 at 12:00 pm and is filed under Emerging Issues, Environment, Pleading Ignorance . Feel free to respond, or trackback. Read our comments policy.