Economic Impacts of the Development of an Offshore Oil and Gas Industry on Fishing Industries: A Review of Experiences and Assessment Methods

Offshore oil and gas extraction has become a major component of the blue economy over the last few decades, and is expected to continue to grow over coming decades. The development of an oil and gas industry in an area potentially has both positive and negative economic impacts on existing fisheries and marine-based aquaculture. Of considerable concern is the potential negative economic impact of an oil spill, a concern highlighted by the large spill in the Gulf of Mexico in 2010. Assessing the economic damage arising from such a spill is complicated, and a range of different approaches have been historically applied. In this paper, the full range of potential economic impacts arising from the development of an offshore oil and gas industry are reviewed based on international experiences, as well as the economic impacts of oil spills. Approaches used to assess these economic impacts are also reviewed, as is the role of management in reducing these impacts.