Oil spill cleanup costs for a nation or region can be estimated by taking the average cost for the specified region and multiplying it by various “modification factors” that are a function of oil type (light crude, heavy crude, No. 4 fuel, etc.), spill size (<34 tons, 34–340 tons, etc.), location type (offshore, nearshore, in-port), cleanup method (dispersants, burning, manual), and extent of shoreline oiling (0–1 km, 2–5 km, etc.). For an average cost of $23.02 per liter and modifiers for a region in the United States of 1.32, 0.65, 1.28, 0.25, and 1.53 for oil type, spill size, location type, cleanup method, and extent of shoreline oiling, respectively, determine the estimated cleanup cost per liter of an oil spill in the region of the United States.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Oil spill cleanup costs for a nation or region can be
estimated by taking the average cost for the specified
region and multiplying it by various “modification
factors” that are a function of oil type (light
crude, heavy crude, No. 4 fuel, etc.), spill size
(<34 tons, 34–340 tons, etc.), location type (offshore,
nearshore, in-port), cleanup method (dispersants,
burning, manual), and extent of shoreline
oiling (0–1 km, 2–5 km, etc.). For an average cost
of $23.02 per liter and modifiers for a region in the
United States of 1.32, 0.65, 1.28, 0.25, and 1.53 for
oil type, spill size, location type, cleanup method,
and extent of shoreline oiling, respectively, determine
the estimated cleanup cost per liter of an oil
spill in the region of the United States.

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