OCS-related oil spill impacts on natural resources: An economic risk analysis

Document Type

Conference Proceeding

Date of Original Version

12-1-2005

Abstract

Risk analyses of oil spills are important in the development of outer continental shelf (OCS) leasing policy as well as other marine policies relating to oil. This paper explores the use of the Natural Resource Damage Assessment Model for Coastal and Marine Resources (NRDAM/CME) to provide a risk analysis of oil spills related to OCS oil development. For the categories of natural resources included in NRDAM/CME, the expected value of damages from large oil spills appears quite small relative to the value of oil developed. Expected damages range from $300,000 to $19.7 million per billion barrels of oil developed. Ongoing research by the authors will refine these estimates by including additional categories of damages, which will increase the damage estimates, and oil spill cleanup and the effect of OCS production on reducing imports, which will reduce the estimated net costs of OCS development.

Publication Title, e.g., Journal

2005 International Oil Spill Conference, IOSC 2005

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