Social and Economic Impacts

According to an article in the New York Times, counselors in the Gulf region reported in increase in symptoms of depression, anxiety, and a sense of hopelessness caused by a fear of losing income and a way of life. The social impacts include not only measurable damages like loss of income, but also intangible effects like the psychological impact, fear, and uncertainty.

The full economic impact of the Deepwater Horizon spill may not be known for several years, but the spill has already created a noticeable effect on the economy of the Gulf of Mexico area and beyond. Already hit by the recession, many people in the region are now extremely worried about their future.

The livelihoods of the thousands of fishermen working in the Gulf area could be devastated by the spill. At the time of the spill, fishermen were still recovering from the aftermath of Hurricane Katrina in 2005. The oil spill threatens to worsen the situation exponentially, with oil damaging the marine population of the Gulf of Mexico area. Many shrimpers contend that before the spill, the 2010 season had been shaping up to be one of the best since the early 1990s. After the spill, however, shrimp levels were significantly reduced. In addition, oysters are thought to be among those most affected, due to the fact that they are incapable of swimming or otherwise moving away from the oil. Oyster beds must be seeded two years before oysters can be harvested, thus making the losses caused by the oil even more devastating. Fishermen have also expressed concerns about the impact of the chemical dispersants used in the cleanup process on crab and shrimp larvae, which, if negatively affected, could further severely damage the crab and shrimp population for many years to come. The complete impact of the oil on fishing in the area will not be fully known for a while, but experts have noted that in Alaska, fishermen are still being affected by the Exxon Valdez spill twenty years later.

Officials are also worried about lowered consumer confidence after the spill, which could lead to a drop in the demand for seafood from the Gulf of Mexico region. The Food and Drug Administration announced that all samples of seafood tested for petroleum compounds returned results below levels that would cause health concerns. However, many people are still worried about the quality of seafood from the Gulf, viewed by many as "tainted." Keath Ladner, the owner of Gulf Shores Sea Products in Lakeshore, Mississippi, saw his biggest customer, who ordinarily bough two million pounds of shrimp per year, cancel the year's entire order. After the 1989 Exxon Valdez spill in Alaska, seafood producers in that region had to spend ten million dollars a year for ten years in order to rebuild their brand. Already, the state of Louisiana has requested 450 million dollars from BP in order to pay for a marketing campaign and continued testing of seafood over two decades.

The negative effects of the spill even reached areas where actual oil never arrived. Tourism in areas such as Florida dropped, even though beaches remained pristine. TradeWinds Resort, located in St. Pete Beach Florida, where no oil showed up, estimated that its earnings dropped by one million dollars compared with averages from years before, due to tourists fears that oil would hit beaches there. Captain Pete Lacombe, who runs his own diving company in Florida, has seen advance bookings for his services completely disappear.

However, the economic impact of the spill was not negative for everyone. The spill has led to a windfall for companies specializing in environmental services, due to the extensive cleanup process. For companies providing ships, crews, and equipment, the oil spill has been an extraordinary opportunity. The services BP enlisted from one cleanup company, the Marine Spill Response Company, added up to 24 million dollars in just two months- nearly the amount MSRC made from all of the oil companies in 2007 and '08 combined.