Those in Louisiana that are worried about long-term economic hardship as a result of the BP oil spill may be able to breathe a little easier, according to recent statements by business economists. 24 months after the incident, residents who depend on offshore industry are not as financially unstable as previously predicted. This may be a result of effective business operations and the subsequent approximately $20 billion spent by BP for oil spill damages. Nearly $2 billion dollars was paid directly to citizens and business owners in the region.
The business economists point to several telling factors that indicate a healthy economy. Unemployment is not significantly different from the years before the spill occurred, and incomes actually have slightly increased. This is in part due to an increase in the petroleum industry last year.
This has also resulted in stronger income and property tax collections for 2011 as well, another indication that the state of the region’s economy is not as dire as predicted. Yet, not all is well. The seafood industry and other industries in the area continue to be worried by the potentially long-term environmental damages caused by the oil and dispersants.
Yet, many in the area are optimistic. With increasing tourism as a result of an orchestrated marketing campaign, business owners in the area believe they are returning to the state of things before the spill.
This may result in increasing opportunities for new businesses to flourish in the region. Those interested in strengthening their business or starting up a business may wish to take the time to speak with a professional business lawyer to better understand how to build and sustain a flourishing business.
Source: Nola.com, “Louisiana’s economic recovery from BP oil spill has been quicker than expected,” Richard Thompson, April 15, 2012