The Future of Offshore Oil Drilling — An Evaluation of the Economic, Environmental and Political Consequences of the Deepwater Horizon Incident

Abstract

Oil exploration and sustainability often seem an oxymoron, especially because one year ago the Deepwater Horizon incident turned into one of the largest marine oil spill in history. Marine and costal life, the population, as well as the entire ecosystem were affected and additionally harmed by the spread of chemicals in the course of clean-up efforts. However, environmental damage is not the only consequence. Lost revenues by the local fishing, tourism and other industries affect the livelihoods of many. One year after the incident, its magnitude and the not fully coordinated response efforts remain a major topic of environmental management discussions. This paper provides an economic, environmental and political assessment of the Deepwater Horizon incident. A look into the future of offshore drilling suggests that it is not only here to stay, but will grow in importance. We must therefore learn to improve the environmental management of offshore drilling.