North America Oil Spill - Essay Sample

Introduction

An oil spill is a form of pollution. It is mainly applied in marine areas to mean the release of petrol hydrocarbon into the environment because of human activities. It poses a threat to human and aquatic life. However, it is not limited to occur in water bodies; it can also occur on land. Spills are generally categorized by size, that is, small (<7 tons), medium (7-700 tons), large (>700 tons). Data shows that in over ten thousand recorded incidents, the vast majority happened to be of the smallest size that is <7 tons. In 2019, for example, the recorded number of oil spills were as follows: one large spill (>700 tons), two medium spills (7-700 tons), and three spills of size 7 tons or more this being the lowest recorded for any year in the last five decades. This translated to a volume of approximately 1000 tons of oil spilled in that year (Freudenburg, 2011).

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Southern Fork of Catfish Creek

The oil spill that occurred on August 6, 2018, where a large storage tank (25 gallons) spilled diesel fuel into a tributary of the Southern Fork of Catfish Creek, giving it a shiny appearance for days. On August 7, the same year, the environmental protection agency (EPA) inspected and documented that the spill resulted from defective secondary containment, which caused release from the facility. Further investigation by the United States department of transport (DOT) revealed that the spill was caused by a defective repair at the bottom of the storage tank. The company agreed to look into the matter and upgrade the secondary containment systems that capture potential spills before leakage into the environment. The company, however, is to pay a civil penalty of $71400 (Hoffbauer, 2014).

Economic incentives have contributed to this menace cushioning the petroleum companies of the risks making chances of future spills unacceptably high. After the Exxon Valdez spill, the 1990 Oil Pollution Act (OPA) provided that firms’ liability for economic damages from oil spills is $ 75 million, which is not adjusted for inflation. Any economic damages beyond this area to be covered by the Oil Spill Liability Trust Fund, which is funded by the government. Per incident, it usually spends $ 1 billion for expeditious oil removal and uncompensated damages. Considering that people or even firms behave differently when they are aware that they are cushioned from a certain risk, misaligned incentives are moral hazards. This is because companies make decisions about where to drill, which equipment to use, and also assess the expected value of the oil compared to the cost. This cost caters to the wages paid to employees, equipment used, and also for payouts for potential spill damages to shores, local economies, and the environment at large. With this kind of incentive, the companies find drilling in otherwise sensitive environmental areas more attractive as they will not meet all the damage costs. Without such distortions created by such Acts, it is possible that companies would shy away from environmentally sensitive areas and drill in safer locations.

The government has a responsibility to respond to oil spills under the Clean Water Act, the Oil Pollution Act, and the National Oil and Hazardous Substances Pollution Contingency Plan (NCP). The department of the interior (DOI) provides scientists and experts that provide advice and help carry out operational decisions that protect natural resources, such as overseeing wildlife rescue, rehabilitation operations, and permitting requirements. So as highlighted above, the key players are the government, which provides acts and incentives, and the companies who carry part of the liability (Leifer, 2012).

Response to Oil Spills

The proposed solutions can be divided into two: prevention strategies and response strategies. Prevention of spills is addressed in all stages of oil mining, especially during the exploration activities. This is achieved by the sound design of structures, safe construction and operating practices, improved environmental awareness, and adequate staff training. During the initial designing phase, several measures are put in place to mitigate possible spill scenarios. Examples of such measures include; oil pumps are equipped with shutdown devices that are used to prevent spills if leakage does occur, the pumps are tested regularly to ensure that the seals prevent leakages, and there is the use of the corrosion prevention technique, for instance, corrosion inhibitor chemicals, metal design, and cathodic protection.

Other prevention techniques include; spill collection facilities, which are designed to redirect spills from the processing equipment to the settling tanks where the oil can be recovered, and blow out preventers which immediately shut off oil and /or gas flow in emergencies, thus preventing blow out. Safe transportation after safe mining is paramount in further preventing oil spills. To maintain safe and responsible transportation, a ship vetting system is applied. Oil companies use this system to ensure that the oil tanker nominated meets the requirements to perform safe oil transportation, qualifying it to be a suitable vessel (Leifer, 2012).

Recommendations to prevent spills caused by human error at oil handling facilities. They emphasize on accountability of employees and employee performance incentives in addition to proper employe1e training. Recommendations to prevent oil spillage by boat owners, marinas, and boatyards. They emphasize regular boat maintenance and proper disposal of used oil and oily wastes. They also recommend the provision of technical assistance and education for boat owners. Recommendations to prevent spills from tankers and tank barges. They recommend management policies and programs that cover the monitoring of operations maintenance, health and safety, and waste management systems. Recommendations to prevent human error spills during bunkering operations. They include proper communication during all phases of bunkering operations, especially in pre-load plan, pre-transfer conference, visual communications, emergency procedures, and safe access between vessels or between a vessel and a facility. Also, there should be a clear definition of the duties of all personnel involved in bunkering operations.

Proposed Response Strategies

The proposed response strategies include: the polluter now takes full responsibility for the economic, social, and environmental damage. Oil spill response is a complex and multidisciplinary activity. During the decision-making process, it combines a wide range of issues such as the nature of the material spilled, the changes in physical and chemical properties, biodegradation, local environmental conditions, the sensitivity of the affected natural resources, and the effectiveness of the response technologies. Many factors determine the cost of cleaning up an oil spill. According to experts, the most important factors determining the per-unit amount cost are the oil spill location, the type of oil spilled, and the total spill amount. The cost varies as follows; in none or minimal oiling, the average cleanup cost is $3637.62 per ton; in moderate oiling, the average cost of cleanup is $4513.18 per ton; in major oiling, the cost is $2511.85 per ton (Freudenburg, 2011).

The cost for cleanup is accrued by the polluter as stipulated in the Oil Pollution Act of 1990. The insurance companies work out the details of legal responsibility, and the United States coast guard can source funds for federal and state agencies who support oil spill cleanup. However, if the polluter can reach its limit of liability under the law, then the costs are covered by the oil spill liability trust fund, which is funded by the government.

Conclusion

The alternative solutions to prevent oil spills or to ensure a fast response in the event a spill occurs include: implementing and putting in place proper containment measures at all levels of the oil mining process from oil exploration to oil production. There should be proper standard ways that dictate how these processes are conducted. This will ensure a proper investigation is conducted afterward, and if malpractice is detected, the people responsible are held accountable. The Oil Pollution Act of 1990 is a good incentive but to some extent; it is proving to be a moral hazard. Some clauses that allow for flexibility of how much the government can cushion the oil companies in the event an oil spillage happens should be considered.

References

Freudenburg, W. R. (2011). Blowout in the Gulf: The BP oil spill disaster and the future of energy in America. . MIT Press.

Hoffbauer, A. a., (2014). Hoffbauer, Andreas, and Howard Ramos. Canadian Review of Sociology/Revue Canadienne de Sociologie.

Leifer, I. W.-B. (2012). State of the art satellite and airborne, marine oil spill remote sensing: Application to the BP Deepwater Horizon oil spill. Remote Sensing of Environment.