The Oil Pollution Act of 1990: A Decade Later

Abstract

Analysis of oil spills data confirms that accidental oil spills are natural phenomenon and that there is a relationship between accidental oil spills and variables like vessel size, vessel type, time and region of spill. The volume of oil spilled bears relationship with the volume of petroleum imports and domestic movement of petroleum and proportion of large oil spills. Finally, navigational risk increases with increase in marine traffic and is also determined by variables like hydrographic and meteorological conditions, water configuration, maneuvering space, obstructions and nuisance vessels. The Oil Pollution Act, 1990 (OPA 90) was passed by the US Congress in the aftermath of 11 million gallon spill of crude oil in Prince William Sound, Alaska. The objective of OPA 90 was to minimize marine casualties and oil spills by addressing preventive, protective, deterrent and performance aspects of accidental oil spills. The arm of various regulations like double-hull tankers and vessel response plans extended to both US flagged and foreign-flagged tank vessels. The cost–benefit analysis of major regulations shows that the estimated costs exceed estimated benefits. We observe from USCG data on oil spills by size, by vessel type, Coast guard district and type of petroleum product that there have been significant reductions in the number and the quantity of oil spills. Our regression results show that the quantity of oil spilled increases with increase in oil imports but increases at a decreasing rate. The quantity of oil spilled decreases with increases in the domestic oil movements. Furthermore, percent of oil spills larger than 10,000 gallons also increases the potential quantity of oil spilled. OPA 90 has been a deterrent to accidental oil spills but the finding is not conclusive.