Oil Spill Cleanup Cost Analysis

According to the International Tanker Owners Pollution Federation Limited (ITOPFL), there is no average cost of cleaning up an oil spill from a tanker or an oil rig. Each oil spill has its own specific clean up costs based on factors such as the type of oil spilled and the geographic location of the spill.

Cost

• Resources for the Future (RFF) reports that the cost of the majority of oil spills is never revealed by oil production companies. Based on historical data, RFF has calculated an average cost of cleaning up an oil spill to be around $16 per gallon.

Types

• The cost of cleaning up an oil spill is calculated by the type of oil spilled. ITOPFL explains that lighter fluids such as gasoline and diesel often do not require any clean up because they disperse naturally on the surface of sea water. Heavier oils can require cleaning of animals, equipment and buildings. A breached tanker or oil well leaking slowly for months that requires a number of clean up operations will increase costs.

Private/Public

• RFF reports that the general public views the cost of an oil spill as being split between public and private factors. Private factors are the costs incurred by halting and cleaning up the spill. Public factors are socially based costs including the loss of life and injury to workers and animals and the cost to government agencies assisting in the clean up.