It has been estimated that the BP Deepwater Horizon oil spill could cost Alabama a minimum of $1 billion and 13,600 jobs this year. An economic impact study released by the University of Alabama came as somewhat of a shock to many who apparently had bought the public relations spin put out by BP, at a cost of over $200 million. The report by Dr. Samual Addy, the Director of UA’s Center for Business and Economic Research is preliminary as it estimates the damages to tourism and the fisheries in Mobile and Baldwin counties for the year. Dr. Addy has stated “people living in other countries should not think they are not affected when something happens to Baldwin and Mobile counties. Our economy is very much interrelated.” Estimates will simply be much higher once the full impact up to date is known.
A worst case scenario in the report, co-written by Ahmad Ijaz, an economic researcher at the University, estimates the spill could result in losses of $3.3 billion and nearly 49,000 jobs this year. The report states:
The motivation for this work comes from the need to understand somewhat the effect of the disaster on Alabama and to facilitate claims to recover losses due to the oil spill’s ongoing adverse effects on the state economy.
It is quite evident that the losses in Alabama were much greater than the public has been led to believe. That’s why it would have been a huge mistake for anybody – including the state and local governments — to settle too early and much too cheaply with BP. The full extent of Alabama’s damages won’t be determined for years. BP and the other wrongdoers must be held fully accountable to all of their victims.
Source: Birmingham News
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