From a small northwestern observatory…

Finance and economics generally focused on real estate

Archive for October 5th, 2021

California Oil Spill

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Oil spills have a very real economic impact on real property, both private and public real estate. Value diminution includes, but is not limited to, loss of use-and-enjoyment, marketability losses, and income losses. In addition to this, remediation costs, loss of habitat, and loss of resources are all potential problems.

As of this writing, we’re still gathering information on the recent California spill near Huntington Beach. Greenfield has consulted on previous spills in that state (Santa Barbara, Avila Beach, etc.) and we’re gearing up for this one as well. Thus far, a reported 126,000 gallons of oil have leaked from one of Amplify Energy’s offshore rigs, although some estimates put that as high as 144,000 gallons. According to CBS News, it is the largest spill that part of the California coastline has seen in many years. The last major spill off Huntington Beach was about 32 years ago, when a British Petroleum oil tanker ran aground spilling 400,000 gallons. Huntington Beach’s economy is heavily dependent on clean beaches and water, and it dubs itself “Surf City USA”.

As of Sunday, an estimated 13 square miles of ocean surface were slicked with oil, with the oil moving southward toward Dana Point and Newport. Sticky balls and patties of oil, similar to what we saw with the Deepwater Horizon spill, are already hitting the beaches. California’s Department of Fish and Wildlife has deployed booms in an attempt to protect the Bolsa Chica wetlands, a valuable ecological reserve. Fisheries within six miles of shore have been closed from Sunset Beach to Dana Point, and warnings have been issued concerning tainted fish and shellfish. Newport Harbor, home to thousands of recreational boats, has been closed.

We’re continuing to track this problem, and as we know more, we’ll keep you posted. If and as you have any questions about this, please let me know.

John A. Kilpatrick, Ph.D. MAI —

Written by johnkilpatrick

October 5, 2021 at 8:36 am

Posted in Uncategorized

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