Spill’s ripples will touch Georgians
Posted by | Posted in Business News | Posted on 07-05-2010
Oil in the Gulf
About 1.7 million barrels of oil per day are produced in the Gulf of Mexico from about 3,560 production platforms with roughly 35,000 workers. That represents :
? About 30 percent of recent U.S. domestic oil production
? About 9 percent of U.S. oil usage
? About 2 percent of global production
The spill
The Deepwater Horizon offshore drilling platform exploded, sank and began leaking oil on April 20
? Spill size: About the size of Rhode Island (1,500-plus square miles)
? Oil leaking each day: About 5,000 barrels. (Oil refiner BP recently said it could be as much as 60,000 barrels a day).
? Oil recovered so far: About 30,000 barrels
Oil prices
The oil spill’s impact on price has been minimal. The price of oil climbed several dollars a barrel after the spill, but has been slipping the past few days. While gasoline prices have gone up since the spill, prices typically go up every year as summer approaches.
Impact here: Compared to a year ago, gasoline prices in metro Atlanta are, on average, nearly 90 cents a gallon higher. About 15 cents of the increase has come since the platform exploded.?
Marine life in the Gulf
The Gulf is home to 42 reef fish species, five species of sea turtles, three species of crab, two species of large whale and other marine life. Spring is the prime breeding season for many species, including shrimp, blue crab and bait fish that deep-water fish consume. A whole spawning cycle for these fish is likely to be destroyed. The western Gulf is the only place in the world that the Kemp’s Ridley sea turtle nests. The species is now in the peak of its nesting season. The area of the oil spill contains one of the only foraging grounds for the turtle.
The Gulf fishery
Commercial fishermen harvest 1.27 billion pounds of finfish and shellfish annually. It’s the second most valuable breeding ground for fish in the U.S. ($659 million). Alaska is first. It’s the No. 1 producer of oysters in the U.S. and the nation’s largest harvester of shrimp. As of May 2, 2,000 square miles of fishing grounds had been closed.
Impact here: Seafood lovers in metro Atlanta can expect to see higher prices for various fish and less supply of some of their favorites such as oysters and shrimp in both restaurants and food stores.
Trade, travel and tourism
The Gulf states of Florida, Alabama, Mississippi and Louisiana see annual travel-generated spending of about $94 billion. About 1 million jobs are supported by that spending — about one in every 12.5 jobs in those states. About 3.2 million recreational fishermen use the Gulf for 24 million fishing trips annually. The Port of South Louisiana (New Orleans) and the Port of Houston are two of the 10 busiest ports in the world by cargo volume, according to the U.S. Environmental Protection Agency. Seven of the top 10 U.S. seaports are on the Gulf of Mexico.
Impact here: Georgia should see more tourists. Lindsay Fruchtl, marketing coordinator for the Tybee Island Tourism Council, said: “From what I’ve gathered from vacation rental companies around the island, they are seeing increased calls and bookings from families and individuals originally scheduled to vacation on the Gulf coast.” Officials at the Georgia Ports Authority say they do not see any impact on their business but are prepared to help companies that may need to find alternative shipping routes.
Sources: National Fisheries Institute, National Oceanic and Atmospheric Administration, U.S. Travel Association, U.S. Mineral Management Service, IHS Global Insight, American Petroleum Institute, U.S. Department of Labor, Platts of The McGraw-Hill Cos., GasBuddy.com., Inland Seafood, U.S. Environmental Protection Agency, BP.
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