Evaluation of methods to estimate the consequence costs of an oil spill  

T Nyman

The objective of this Consolidation Study is for the purposes of the cost-benefit-analysis in the FSA process to bring out the different methods to estimate the consequence costs the oil spill has and different factors having an influence on the oil spill. Due to the huge scatter in the statistical oil spill cost values it is difficult to give exact monetary values which would be generally valid. In the guidelines of the IMO FSA process there have not been any directions how the environmental risk should be evaluated. This was noticed in IMO and the Correspondence Group on Environmental Risk Evaluation Criteria was established. This report presents some preliminary findings of the work of the Correspondence Group as well as gives some data and methods which can be used in the cost benefit analysis of the FSA process.
 
In the study, first the general statistics related to oil spills and their consequence costs are studied. Second, the work of the IMO Correspondence Group on Environmental Risk Evaluation Criteria is described. Third, the International Oil Pollution Compensation Fund (IOPCF) and the oil spill consequence cost compensation principles are described. Fourth, the different regression studies performed utilising the IOPCF oil spill statistics are reviewed. Fifth, examples of data and methods which can be used in different phases of the FSA process are presented.
 
[IMO, Consolidated text of the Guidelines for Formal Safety Assessment (FSA) for Use in the IMO Rule-Making Process (MSC/Circ.1023-MEPC/Circ.392), 2007]