THE COST OF OIL SPILLS1

ABSTRACT The costs of major oil spills vary considerably from one incident to another and frequently defy simple analysis. Cleanup costs can range from about $5 to $30,000 per metric ton of oil spilled depending on many factors including the type and amount of oil spilled, the location of the incident and the response mounted at sea and on shore. These and other factors are discussed by reference to examples of marine oil spills from tankers around the world. Many spills give rise to additional claims for alleged damage to exploited and unexploited natural resources. These can amount to many tens of millions of dollars. Specific examples again are provided and the view expressed that many claims for damage to unexploited natural resources are best regarded as a desire to levy a penalty on the polluter rather than provide compensation for the real damage caused.