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EXXON VALDEZ OIL SPILL.
  Term Paper ID:18141
Essay Subject:
Economic, political & environmental ramifications of March 24, 1989, tanker accident in Alaskan waters.... More...
6 Pages / 1350 Words
13 sources, 19 Citations, APA Format
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Paper Abstract:
Economic, political & environmental ramifications of March 24, 1989, tanker accident in Alaskan waters.

Paper Introduction:
The Economic, Political and Environmental Ramifications of: The Exxon Valdez Oil Spill On Good Friday, March 24, 1989, Valdez, Alaska was thrust into the world spotlight as the tanker Exxon Valdez struck Bligh Reef, spilling 10 million gallons of oil into the marine-life-rich waters of Prince William Sound (Gilson, 1989, p. 18). The oil spill resulting when the Exxon Valdez struck Bligh Reef was the worst in American maritime history. As the story unfolded, the public learned that the captain of the ship had apparently been drinking, that the third mate was in charge of the vessel at the time it struck the reef, and that safeguards which should have prevented such an accident existed, but were not operating the night of the accident ("In Ten Years..." 1989,

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Audubon 91, pp. 5 -54. (1989, September 18). 6 -69. (1989, August 7). 18-19. Satchell, Michael and Betsy Carpenter. Refinersfound that under the EPA's measures, a large amount of the gasoline on handcould not be marketed. (1989, September 15). The Valdez population of 3,5 has at times swelled to over 15, . Sea birds and otters suffered the most immediate damage: 33, birdsand 1, otters were either found dead or died in rehabilitation centers(Stachell and Carpenter, 1989, p. Theweather in the area was uncharacteristically calm at the time of the spill,and the beaches aren't sandy enough for the oil to pick up enough depositsto sink. In addition, a fire on a large oil platform in theNorth Sea also cut the supply available at the time. The AlaskaLegislature ended its 1989 session in May by passing bills to protect theenvironment and impose fines on those responsible for future oil spills.Most dramatic was the repeal of tax concessions to oil companies in Alaska. . IndustrialDistribution 78, pp. 4. So long as oil remains a primary source of energy, oil companieswill continue to pump and ship their product from places such as Alaska.What the Exxon Valdez spill illustrates is that the oil companies andgovernment have a responsibility to effectively contain and minimize theimpact of any future spills. Oil has been a part of Valdez for twenty years, and thespill brought an unexpected economic boom to an otherwise economicallydepressed area: The billion-dollar cleanup has revitalized the state's economy, depressed by low oil prices, and brought its unemployment rate down from 1 .9 percent two years ago to 6.1 percent in July . Newsweek 113, pp. The one billion dollarfigure does not include penalties or lawsuit settlements, which will takeyears to occur. Consumer prices jump .7%, withgasoline as the culprit. The number of permanent jobs did notincrease, but there was a short-term increase in the amount of moneyavailable in Valdez and the surrounding areas as a result of the spill. (1989, October). Egan, Timothy. National Fisherman 7 , pp. F. . ----. A1. The oil spill resulting when the Exxon Valdez struck Bligh Reef wasthe worst in American maritime history. Inaddition to those who made money working for Exxon directly, there was alsoa service industry which developed to serve those workers. (1989, May 14). This paper examines the spill and its economic, political andenvironmental consequences. (1989, May 19). Oilspeak, common sense, and softscience. (1989, May 8). While the spill contributed to thatincrease, other factors at the time may have had a greater impact ongasoline prices (Nash, 1989, p. A1). Gilson, Tom. The effect on younger fish is less clear and more difficult todetermine. A1). Two months after the spill, more than 73 miles of Alaskancoastline were contaminated on beaches as far away as 5 miles from thereef where the tanker was grounded (Egan, 1989, p. 62). PublicManagement 71, pp. Modern Healthcare 19, p. Exxon announced in August 1989 that it would spend over $1 billionto clean up the spilled oil. A1. The actualsuccess of the hatcheries, that is, whether the salmon fry will return asadults, will not be known for two years, though fishermen in the area areoptimistic. 4). Impacts of an environmental disasteron a small local government: The Valdez, Alaska, oil spill. New York Times, p. In an interviewshortly after the spill, Mr. Kelly said, "they (the oil companies] aremaking billions of dollars in Alaska, but have nickled and dimed on thecleanup. The tax breaks totalled approximately $15 million per year (Mauer, 1989,p. Oills political power in Alaska mayebb with spill at Valdez. The state prohibited fishing in nearly one-third of PrinceWilliam Sound shortly following the accident. 4 ). Matsen, Brad. A1). References Bonnanzio, John G. The Exxon Valdez oil spill brought into focus the fact that oilcompanies are ill-prepared to effectively prevent or clean up massive oilspills. . Graham, Frank. By May 19, the ecological toll of the spill includes more than 11, birds of 3 species, 7 Pacific sea otters and 2 bald eagles . Oil spill bogs down Alaskahospital. There was no evidence thatfish in that area were tainted, but the government feared the backlash fromconsumers if fish picked up oil as they were hauled to the surface. Young salmon feed on plankton in shallow water off beaches.If they ingested water after the spill, they may develop cancer orreproductive disorders. A1. A widespread spill. Some fishermen hired their boats to Exxon to assist in the cleanup,at charges that reached as high as $5, per day (Satchell and Carpenter,1989, p. Industry Week238, pp. New York Times, p. As the story unfolded, the publiclearned that the captain of the ship had apparently been drinking, that thethird mate was in charge of the vessel at the time it struck the reef, andthat safeguards which should have prevented such an accident existed, butwere not operating the night of the accident ("In Ten Years..." 1989, p.51). ----. 62). Wild runs ofsalmon were down, however; whether the decrease was due to the spill or toother factors is not known currently (Matsen, 1989, p. A26). 4 -48. Seabirds who died did so mainly because they ingested the oil as they groomed. A1). Hence, the tax incentives. Mauer, Richard. In ten years you'll see 'nothing.' Fortune119, pp. Nash, Nathaniel. The spill was followed by a significant (27 cents per gallon)increase in the price of gasoline. 64). The political effects of the spill came quickly. Numerous birds andotters had died, and there was a moratorium on fishing in a large part ofthe sound. 78-8 . Smallmarine organisms living on the rocky beaches also suffered large lossesimmediately following the spill, but seemed to rebound fairly quickly.Some species of snails actually benefitted from the spill and theirpopulations "exploded" (Satchell and Carpenter, 1989, p. Taravella, Steve. (1989, May 1). The high cost of catastrophe. 4 .----------------------- 9 Localresidents were hired by Exxon to help in the cleanup at $16.69 per hour.That wage also attracted a large number of workers from outside the areaand in fact, from outside the state. 1-2. Environmentalpolitics. In the late 197 s andearly 198 s, there was a shift away from proponents of big government inAlaska, and an increase in politicians who felt that the money would bebetter spent in the hands of private industry. Birds of prey, such as eagles, were hit hard by the spill because they fedon the weakened or dead animals and also ingested oil. (1989, May 19). Adisaster that wasn't." U.S. News and World Report 1 7, pp. The long-term economic effects concern those in the area who maketheir living from fishing. The environmental effects of the oil spill are the most difficult toassess due to the long-term nature of the effect. Even a trace of oil on afertilized eagle egg can poison the embryo inside, and the birds laid fewereggs than in other years (Satchell and Carpenter, 1989, p. (1989, April 17). The tarlikeunsightly deposits will remain for an estimated three to six years, but arenot considered hazardous to wildlife. The hatcheries of Prince William Soundwitnessed solid returns of salmon at the end of the summer. New York Times, p. Unlike otters, which rely on their peltsfor warmth, other sea mammals have large amounts of subcutaneous blubber.When the otters pelts became soaked with oil and unable to protect theanimals from the cold water, the sea lions and whales were unaffected. Oil companies lost their tax advantages, and the industryitself came under fire from environmental groups and consumer groups.Questions have been raised about other oil installations and explorationsites, and legislatures across the country are reviewing their ownpolicies. Entrepreneurs sell everything from sex to 3 souvenir vials of Prince William seawater (Stachell and Carpenter, 1989, p. (1989, December). Large numbers of young larvae could have been poisoned by oilin the water. The shipwas named for the town of Valdez; the town developed as a result of the oilboom of the 197 s. Black gold! 1). Deep wateranimals fared well because the type of oil involved, Prudhoe crude, doesn'tsink to the sea floor unless it picks up sand, silt or small rocks. By September, the hospital faced "the biggest accounts receivablein its history" and found Exxon "seemingly unwilling to pay $25 , inmedical bills" (Taravella, 1989, p. (1989, September). Taxation policies at that time weredesigned so that some of the money the oil companies were taking fromAlaska would be returned in the form of revenue. 18). State Senator Tim Kelly, a Republican, considered himself among thepro-oil majority in the Alaska Senate until the spill. Seals, sea lions and whales remained apparently unharmed from theshort-term effects of the spill. "The price increasewould have come even without the Alaska oil spill, but three months ofincreases were compressed into one" (p. Even iffuture salmon catches are less numerous than usual, fishermen cite the factthat salmon catches vary greatly from year to year even without taking intoeffect the spill. Even ValdezHospital, a 15-bed facility, participated in the cleanup effort by treatingworkers. . During the months following the spill, the state returned to theregulation and approach it took during the 197 s, when it passed a greatnumber of environmental legislation. The long-term economic effects of the spill are more difficult togauge. Adult salmon returning to spawn do not normallyfeed near the beaches and are thought to have survived the spill. 64). Hackett, George and Mary Hager. Halibut, a bottom-feeding fish, have not experienced significantdrops in population (Satchell and Carpenter, 1989, p. Solid returns of hatchery fish aremarred by poor wild runs. Since the spill, a lot of people have been looking at industry statements with a lot of skepticism (p. The tax loophole was eliminated with the support of Alaska'sgovernor, Steve Cowper: Up until the spill, a large number of Alaskans were content to take industry statements at face value without questioning them. The Economic, Political and Environmental Ramifications of: The Exxon Valdez Oil Spill On Good Friday, March 24, 1989, Valdez, Alaska was thrust into the world spotlight as the tanker Exxon Valdez struck Bligh Reef, spilling 1 million gallons of oil into the marine-life- rich waters of Prince William Sound (Gilson, 1989, p. 64). A26). Wildlife death toll climbs as spillclings to Alaska. 63). The economic effects of the spill began almost immediately. 63). I'm never going to forgive them for that" (Mauer, 1989, p. Time 134,p. (1989, September). Some on-site biologists suggest thatonce the oil congealed, it was "relatively nontoxic" (p. D2). That figure exceeds the company's initialestimate tenfold ("The High Cost..." 1989, p. The long-termeffects on the birds are harder to measure. Miller, William. 1 2-111. 18-19. Biologists say the actual number of dead wildlife could be three to five times higher because many of the animals have been washed out to sea or taken by predators (Egan, 1989, p. These include a low level of oil inCalifornia refineries and new regulations by the Environmental ProtectionAgency (EPA) regulating the chemical composition of gasoline.

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