Accounting for product impact in the oil and gas industry

We apply the product impact measurement framework of the Impact-Weighted Accounts Initiative (IWAI) in two competitor companies within the oil and gas industry. We design a monetization methodology that allows us to calculate monetary product impact estimates of natural gas provision to emerging markets, energy provided, and emissions created. Our results indicate differences in the impact that competitors have through their products. These differences demonstrate how impact reflects corporate strategy and informs decision-making on industryspecific areas.(AU)

Comparative risk assessment of oil spill response options for a deepwater oil well blowout: Part II. Relative risk methodology.

Subsea dispersant injection (SSDI) was a new oil spill response (OSR) technology deployed during the Deepwater Horizon accident. To integrate SSDI into future OSR decisions, a hypothetical deepwater oil spill to the Gulf of Mexico was simulated and a comparative risk assessment (CRA) tool applied to contrast three response strategies: (1) no intervention; (2) mechanical recovery, in-situ burning, and surface dispersants; and, (3) SSDI in addition to responses in (2). A comparative ecological risk assessment (CRA) was applied to multiple valued ecosystem components (VECs) inhabiting different environmental compartments (ECs) using EC-specific exposure and relative VEC population density and recovery time indices. Results demonstrated the added benefit of SSDI since relative risks to shoreline, surface wildlife and most aquatic life VECs were reduced. Sensitivity of results to different assumptions was also tested to illustrate flexibility of the CRA tool in addressing different stakeholder priorities for mitigating the impacts of a deepwater blowout.

Comparative risk assessment of spill response options for a deepwater oil well blowout: Part III. Stakeholder engagement.

This paper describes oil spill stakeholder engagement in a recent comparative risk assessment (CRA) project that examined the tradeoffs associated with a hypothetical offshore well blowout in the Gulf of Mexico, with a specific focus on subsea dispersant injection (SSDI) at the wellhead. SSDI is a new technology deployed during the Deepwater Horizon (DWH) oil spill response. Oil spill stakeholders include decision makers, who will consider whether to integrate SSDI into future tradeoff decisions. This CRA considered the tradeoffs associated with three sets of response strategies: (1) no intervention; (2) mechanical recovery, in-situ burning, and surface dispersants; and, (3) SSDI in addition to responses in (2). For context, the paper begins with a historical review of U.S. policy and engagement with oil spill stakeholders regarding dispersants. Stakeholder activities throughout the project involved decision-maker representatives and their advisors to inform the approach and consider CRA utility in future oil spill preparedness.

Mitigating Litigating: An Examination of Psychosocial Impacts of Compensation Processes Associated with the 2010 BP Deepwater Horizon Oil Spill.

During the past four decades, a number of social science scholars have conceptualized technological disasters as a social problem. More specifically, research in this arena has identified individual and collective stress as a secondary trauma of processes intended to provide compensation and economic relief from disasters in general and, more specifically, technological disasters. Based on data from a 2013 household telephone survey of 1,216 residents of coastal Alabama, this article examines the relationship between psychosocial stress and compensation processes related to the 2010 BP Deepwater Horizon oil spill. We examine involvement with claims, settlement, and litigation activities; vulnerability and exposure to the spill; ties to resources; resource loss and gain; perceptions of risk and recreancy; and intrusive stress and avoidance behaviors as measured by the impact of event scale. Regression analysis reveals that the strongest contributors to intrusive stress were being part of the compensation process, resource loss, concerns about air quality, and income. Although being involved with compensation processes was a significant predictor of avoidance behaviors, the strongest contributors to avoidance behaviors were resource loss, air quality concern, income, being male, minority status, and community attachment. Beliefs that the compensation process was as distressing as the oil spill also significantly contributed to intrusive stress and avoidance behaviors. This research represents a step toward filling a gap in empirical evidence regarding the extent to which protracted compensation processes exacerbate adverse psychosocial impacts of disasters and hinder community recovery.

The Gulf oil spill, miscarriage, and infertility: the GROWH study.

PURPOSE: To examine whether reported exposure to the Gulf oil spill (2010) was related to reproductive reported miscarriage or infertility. METHODS: 1524 women aged 18-45 recruited through prenatal and Women, Infant, and Children (WIC) clinics, and community events were interviewed about their experience of the oil spill and reproductive history. 1434 women had information on outcomes of at least one pregnancy, and 633 on a pregnancy both before and after the spill. Generalized estimating equations were used to examine the relationship between contact with oil and economic and social consequences of the spill with postponement of pregnancy, miscarriage, and infertility (time to pregnancy >12 months or reported fertility issues), with adjustment for age, race, BMI, smoking, and socioeconomic status. Results were compared for pregnancies occurring prior to and after the oil spill. RESULTS: 77 (5.1%) women reported postponing pregnancy due to the oil spill, which was more common in those with high contact with oil or overall high exposure (aOR 2.92, 95% CI 1.31-6.51). An increased risk of miscarriage was found with any exposure to the oil spill (aOR, 1.54, 95% CI 1.17-2.02). Fertility issues were more common in the overall most highly exposed women (aOR 1.88, 1.19-2.95), when the data were limited to those with pregnancies before and after. However, no particular aspect of oil spill exposure was strongly associated with the outcomes, and effects were almost as strong for pregnancies prior to the oil spill. CONCLUSIONS: The oil spill appears to have affected reproductive decision-making. The evidence is not strong that exposure to the oil spill was associated with miscarriage or infertility.

Comment on "A revealed preference approach to valuing non-market recreational fishing losses from the Deepwater Horizon Oil Spill" and its "Corrigendum" by Alvarez et al.

This Comment identifies and discusses several methodological errors in the application of choice modeling that appear in an article and Corrigendum by Alvarez et al. published in this journal. The purpose is to clarify the correct methods as an aid to future researchers.

Best available techniques (BATs) for oil spill response in the Mediterranean Sea: calm sea and presence of economic activities.

An oil spill is the accidental or intentional discharge of petroleum products into the environment due to human activities. Although oil spills are actually just a little percent of the total world oil pollution problem, they represent the most visible form of it. The impact on the ecosystems can be severe as well as the impact on economic activities. Oil spill cleanup is a very difficult and expensive activity, and many techniques are available for it. In previous works, a methodology based on different kinds of criteria in order to come to the most satisfactory technique was proposed and the relative importance of each impact criterion on the basis of the Saaty's Analytic Hierarchy Process (AHP) was also evaluated. After a review of the best available techniques (BATs) available for oil spill response, this work suggests criteria for BATs' selection when oil spills occur in the Mediterranean Sea under well-defined circumstances: calm sea and presence of economic activities in the affected area. A group of experts with different specializations evaluated the alternative BATs by means of AHP method taking into account their respective advantages and disadvantages.

Perceived resilience: Examining impacts of the deepwater horizon oil spill one-year post-spill.

Scant research has focused on resilient responding to disasters such as oil spills a year or more after the event. One year after the BP Deepwater Horizon oil spill, this study assessed perceived resilience, relations between resiliency and psychological symptoms, and the degree to which self-reported resiliency was associated with reduced psychological symptoms after accounting for differences in economic impact sustained by Gulf Coast residents. Participants were 812 adults (64% women, mean age 50) of 2 Alabama coastal communities. Participants were administered a telephone survey 1-year post-spill assessing self-perceptions of impact factors (e.g., economic and social), resilience, coping, and depressive and PTSD symptoms. Most participants perceived themselves as resilient (n = 739). As expected, lower perceived resilience was associated with greater ongoing depressive and PTSD symptoms. Spill-related economic impact predicted greater depressive and PTSD symptoms; however, perceived resilience predicted significant variance in psychological symptoms after taking into account spill-related economic impact. Improving individuals' sense of resiliency may help mitigate psychosocial and mental health effects over time.

Tourism and its hypersensitivity to oil spills.

The sinking of the Don Pedro merchant ship in 2007 near the island of Ibiza is a good example of the extreme sensitivity of the tourism sector to oil spills. Despite the limited scale of the spill (only some 20 tonnes), its minimal ecological impact, and the rapid deployment of personnel and equipment to contain it, the accident nonetheless caused significant economic damage to the island's tourism sector. This particular case demonstrates the importance of the beach as a factor of production in the holiday tourism sector, and the capacity of even small amounts of oil to render it unusable and cause heavy losses to holiday firms.

A revealed preference approach to valuing non-market recreational fishing losses from the Deepwater Horizon oil spill.

At an estimated 206 million gallons, the Deepwater Horizon (DWH) is the largest marine oil spill in the history of the United States. In this paper we develop a series of random utility models of site choice by saltwater anglers in the Southeast US and estimate monetary compensation for recreational losses due to the DWH oil spill. Heterogeneity in angler preferences is accounted for by using mixed logit models, and different compensation measures for shore-based, private boat, and for-hire anglers are estimated. Results indicate that willingness to pay for oil spill prevention varies by fishing mode and anglers fishing from shore and private boats exhibit heterogeneous preferences for oil spill avoidance. In addition, the total monetary compensation due to anglers is estimated at USD 585 million.

Disutility analysis of oil spills: graphs and trends.

This paper reports the results of an analysis of oil spill cost data assembled from a worldwide pollution database that mainly includes data from the International Oil Pollution Compensation Fund. The purpose of the study is to analyze the conditions of marine pollution accidents and the factors that impact the costs of oil spills worldwide. The accidents are classified into categories based on their characteristics, and the cases are compared using charts to show how the costs are affected under all conditions. This study can be used as a helpful reference for developing a detailed statistical model that is capable of reliably and realistically estimating the total costs of oil spills. To illustrate the differences identified by this statistical analysis, the results are compared with the results of previous studies, and the findings are discussed.

Determining the effect of environmental accidents on responses to a Gulf of Mexico recreational for-hire fishing industry survey.

A survey designed to collect economic, attitudinal and policy data from the recreational for-hire (RFH) fishing industry in the U.S. Gulf of Mexico was conducted before and during the largest marine oil spill in U.S. history (the April 2010 Deepwater Horizon blowout). Respondents were grouped into two time periods based on when the survey was completed, where the break in groups was determined through the examination of the Pew Research Center's media coverage index and the per cent of fishing area closures due to the oil spill. A logistic regression was used to test variables that might predict the time period of a response. Results indicated that recall bias was not present in the financial variables examined, but that firm operating and demographic characteristics (i.e. vessel size, annual number of trips, number of vessels operating in the firm, tenure and household income) were significant in explaining the time period in which surveys were completed.

A probabilistic model estimating oil spill clean-up costs--a case study for the Gulf of Finland.

Existing models estimating oil spill costs at sea are based on data from the past, and they usually lack a systematic approach. This make them passive, and limits their ability to forecast the effect of the changes in the oil combating fleet or location of a spill on the oil spill costs. In this paper we make an attempt towards the development of a probabilistic and systematic model estimating the costs of clean-up operations for the Gulf of Finland. For this purpose we utilize expert knowledge along with the available data and information from literature. Then, the obtained information is combined into a framework with the use of a Bayesian Belief Networks. Due to lack of data, we validate the model by comparing its results with existing models, with which we found good agreement. We anticipate that the presented model can contribute to the cost-effective oil-combating fleet optimization for the Gulf of Finland. It can also facilitate the accident consequences estimation in the framework of formal safety assessment (FSA).