Damage to U.S. property by the oil spill could reach $ 28 billion





11.10.2010 06:38
The Government intends to make BP pay more

U.S. Department of Justice in mid-September announced plans to sue the oil company British Petroleum (BP) by $ 17 billion in connection with the accident on April 20 oil rig Deepwater Horizon. But $ 17 billion - it`s flowers, say experts think tank "Real Estate Market Indicators." CoreLogic, a leading analyst firms will offer the consumer, financial information, information about real estate and other statements in the business for the business community and governments of America, commended the upper limit of possible damage to property on the shores of the 15 counties nearly $ 27.7 billion


Loss of BP
Previously, analytical resource www.irn.ru reported that compensation for the Gulf coast was formed by BP fund a $ 20 billion in Treasury losses of the company by the end of the summer, according to reports of agencies, including the costs of plugging wells had broken through, it was estimated at $ 17 billion

U.S. Department of Justice claims to be related to the amount of fines, which the oil company would pay for each barrel of oil vylivsheysya. If the court will prove that there had been negligence on the part of employees, BP faces a fine up to $ 4300 per barrel, caught in waters of the bay. Otherwise, the company will pay $ 1100 per barrel. Thus, at the least favorable to the verdict of the BP company will pay the U.S. government to $ 17.6 billion

Portal www.irn.ru already written consent of BP to meet the financial claims of Realtors in Florida and four other states (see "Florida Realtors will receive $ 16 million from British Petroleum). But lawsuits and extrajudicial claim of the main victims - the owners of real estate on the coast - is still ahead. Their total amount is more than three orders of magnitude greater.


The main problems

CoreLogic recently released a report detailing justifies all the terms of this sum. According to her, an oil spill 80 kilometers from the coast of Louisiana in the Gulf of Mexico and the subsequent environmental disaster has damaged more than 600,000 residential houses within the mile radius from the coastline.

The report indicates that the damage cost of housing in the coastal risk 15 counties expected a $ 648 million during the year and approximately $ 3 billion over five years. And that`s just the light of the settlements, which are already affected by a disaster. If events unfold in the most dysfunctional scenario, the oil spill will reach the Florida Keys and Atlantic coast of Florida, further losses could reach almost $ 28 billion (See table at end of article).


Highlights of the report CoreLogic
* Losses in the possibility of using "real estate is defined as the value of the annuity continued access to the beach, are measured in distance from the shoreline, and are calculated based on the 5-year term environmental effects of oil spills.
* Losses in the "possible use" of increases for objects that are closer to the beach. Houses on the coastline itself may lose in value to $ 80,000. At distances more than a kilometer from the shoreline this figure drops to zero.
* At highest risk of coastal towns in Mississippi, Alabama, and "panhandle" of Florida there are more than 71,000 homes, while losses from the inability of their advantages in access to the beaches are priced from $ 40,000 to $ 56,000 per household. Total losses - $ 3 billion
* From the immediately affected communities the greatest losses suffered Pensacola ($ 1.6 billion) and Gulfport ($ 1.2 billion).
* From the standpoint of the largest average loss per household is the most affected is the Gulfport ($ 56,000), followed by Mobile ($ 45,000) and Pensacola ($ 40,000).
* If the current will carry oil from the Gulf to cities on Florida`s Gulf Coast, the loss will increase significantly. Four coastal cities on the coast (Panama City, Tampa Bay, Cape Coral, Naples), can get the total loss in value of $ 11 billion, which will affect 238,000 homes.
* Even if the chances are small, CoreLogic estimated the potential loss of Atlantic coast of Florida, including Miami, Key West, Palm Bay, Daytona Beach and Jacksonville. They may be affected more than 295,000 homes in kilometers of the coast, and the total loss from loss of use of $ 13.5 billion


The loss of welfare
In addition to the loss of economic value of access to beaches, and the already fragile housing market in five states and 15 counties affected, as all of America, from the mortgage crisis threatens to further complications. In many localities may have problems because of the possible consequences of the influence of the oil spill on the local economy. For example, what would earn a living (and the mortgage payment) to local fishermen, who organize fishing for tourists and holiday-makers? Enough to reread "The Old Man and the Sea by Ernest Hemingway, to assess these effects.

"Using proven methods to assess the economic value of environmental goods suggests that the damage from the inability to use the seafront location is essential. Although this is not the ultimate confidence that all major population centers along both coasts of Florida affected by the oil spill, the loss of its markets may be particularly high, - said Mark Fleming, chief economist at CoreLogic. - Total losses from the effects of oil spills to date, potentially $ 3 billion over five years. We hope that the effects of oil will be eliminated as soon as possible, and the beaches quickly return to homeowners affected settlements in purity. "


Methodology
CoreLogic has used a database gathered more than 3,100 counties throughout the United States, covering 99.8% of the U.S. population. Intersection data, superimposed on a geospatial file coastline accurately determines the geographical position of each object on the shore. On the basis of geospatial queries, more than 600 000 objects were in the 1000-meter area from the shoreline in 15 counties on the Gulf Coast and Alabama to the Atlantic coast of Florida.

Homebuyers in these coastal settlements paid "premium", buying homes with the possibility to use "access to beaches and other benefits it provides. Now, nobody to pay them will not. "The ability to use" calculated based on the annual value of the annuity access to the beach, using the present value discounted at the rent in perpetuity. CoreLogic suggests that the recreational value of beach will be limited due to oil spills in five years.


Who war, a mother who
Lawyers in Florida, Alabama, Mississippi, Louisiana and Texas - the affected states are probably rubbing their hands, say experts www.irn.ru. They provide a process for at least the next five years, and even more so because the courts will be swamped with cases. In the U.S., is often practiced that the attorney fees in property right depends on the pattern during the award. A 15-30% of the $ 27 billion or even $ 13 billion is not even round, one might say, a cubic amount. Maybe in five years on the beaches cleaned there were whole new settlements of those lawyers, who amassed a fortune in these places (by which time oil will be removed, and the prices start to rise - that Barack Obama will do). Lawyer is concerned with collecting payment from BP and owns the information about all its aspects, is not difficult to calculate the potential benefits from such investments.

Of course, local authorities will want to save money to voters, and they can hire an attorney to protect the interests of the whole village at once (for a fixed fee). But someone who is, and the Russians know how to rely on the protection of the authorities. Rather, in the spirit of individualism permeated America, are not yet fully disappeared, there are many who want to defend their own their own business.

Sergei Zharkov, editor in chief of the analytical portal www.irn.ru
Content tags: Overseas property
Did you like the material?Subscribe to our newsletter
Your comments:
Your opinion be first
 
 
Sign