How Will the BP Oil Spill Affect the Economy In the Near Future? What Does It Mean To The "Average Joe"?

by admin on November 18, 2010

How Will the BP Oil Spill Affect the Economy In the Near Future? What Does It Mean To The “Average Joe”?

According the recent report done by the US scientists, they estimated that the BP oil spill incident in the Gulf of Mexico is the biggest oil disaster in the world. Up to date, as many as 174 million gallons of oil have been spilled. This Deep Horizon Disaster has badly affected the ecosystem of the Gulf region and many people have been suffering from financial difficulties. This unfortunate incident has actually brought a lot of negative impacts to the global economy.

Let’s see what will happen in the near future?

According to the previous statistics, the Gulf fishing and tourism industries produced an average annual income of $3.5-$4.5 billion for the past few years. Right after the oil spill incident, the annual income for the year of 2010 has been reduced dramatically. The sea water has been contaminated and most of the marine lives were killed. The fishing industry is considered “dead” at the moment because nobody dares to eat seafood in the Gulf region. The seafood wholesalers have suffered huge losses. The environmental damages have great potential to wreck the local economy.

Same thing happens to the tourism industry. Almost all the tourists who have planned to spend their summer at the Gulf of Mexico cancelled their vacation right after the oil leak. They are not willing to waste their time at the tourist spots because in their opinion, the sea hasn’t been cleaned up completely and the beaches are no longer safe.  The hotels in coastal cities have not received bookings since April 2010. Although BP has allocated $5 billion to compensate the affected victims, these people are not able to survive in the long run. It may take years for the residents and business owners to recover from this crisis. They have to put in extra hard effort to look for other job opportunities.

We are able to see some direct effects on certain industries. It is also time for us to take a look at the “Average Joe” and anticipate some worse scenarios in the coming future. We talk about the prices for the oil and gas. Although there is no price increment after the oil spill incident, it doesn’t mean that we have sufficient supply in the near future and the prices will remain the same. We should not be too happy now. Many financial experts estimate that the fuel prices will increase after winter. Are you ready to pay more for the petrol? Next, we look at the stock market. The market is uncertain and it is getting harder to predict the movements. The effects of global economy downturn are still there and there is no obvious improvement.

Do all Americans concern about risk management? The Deepwater Horizon Disaster is considered a “wake up call” for Americans to pay full attention on the economy. We should take proactive action to prevent ourselves from becoming the victims of the recession. Now, looking for alternate income sources is a must.

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