Content area
Full text
Abstract
The oil spill caused by the explosion of the Deepwater Horizon oil rig in 2010 had a major impact on the Gulf Coast region. Accurate identification and quantification of oil spill impacts on the gulf coast region is very critical for the stakeholders. This research proposes a modeling technique that will quantify the economic and logistical impact in the region to include various factors. Data and analysis based on economic impact models will be used to identify the impacts of oil spill to job losses, shipping disruptions and logistical impact on the regional economy. For example, economic impact modeling can project losses in employment, income, and tax revenues due to the shutdown of a major port or businesses. The results of these analyses will be used to illustrate the economic and fiscal implications of various scenarios to policymakers and stakeholders. The impacts of the oil spill can be analyzed by utilizing data from the ports/businesses themselves along with input-output data. Ports track the quantity of goods passing through, along with the final destination of those goods. Input-output data includes data on the port traffic, tourism traffic, business sales, employment, etc.
Keywords
Logistical impact modeling, economic impact modeling, oil spill assessment
1. Introduction
The oil spill caused by the explosion of the Deepwater Horizon oil rig on 20 April 2010 is expected to have severe long term impacts on the Gulf Coast region. It has already affected businesses in areas of Louisiana, Mississippi, Alabama and Florida. Tourism and seafood sectors are among the hardest hit; however, other sectors will not be spared from the direct impact of this catastrophe. Ports and hinterland facilities on the gulf coast play an important role in national logistics. The port of Gulfport, Mississippi, handles 230,000 TEUs every year. The port of Mobile handled 129,119 TEUs in 2008. Louisiana's Winona is the state's third-busiest port and handles about 2 million tons of products each year. The port of New Orleans handled 251,000 TEUs in 2008. New Orleans is the nation's premier coffee-handling port. Seventy percent of the coffee shipped to the United States goes through the Port of New Orleans. Even a small impact on port and intermodal facility operations could cause ripple effect on the nations' supply chain.