Our Drilling oil is an example of common good. A common good
is nonexcludable and
rival in consumption. In this perticular case, it is rival because natural petrulum is nonrenewable
natural resource, once it is consummed by someone, the reserve would be less and less avaliable
to others; it is also nonexcludable because we can not exclude someone like BP from benefiting
from oil drilling because it is under the deep ocean which is a public good.
In most cases a
public good must be supplied by the government. The marginal social benefit of a public good is
equal to the sum of the individual marginal benefits to each consumer. The efficient quantity of a
public good is the quantity at which marginal social benefit equals the marginal cost of providing
the good. Like a positive externality, marginal social benefit is greater than any one individual’s
marginal benefit, so no individual is willing to provide the efficient quantity.
explained the drilling Gulf of Mexico oil spill tragedy step by step. It
explained that on Tuesday, April 20, 2010 The Deepwater Horizon, a semi-submersible offshore
drilling rig in the Gulf of Mexico,
exploded and caught fire
at around 10 p.m. local time (CST).
126 people were on board, 17 were injured and 11 are still missing (presumed dead). Most of the
survivors escaped using lifeboats and were picked up by a supply boat that BP had hired. The
survivors were brought to Port Fourchon to go through a medical check-up and be reunited with
It was also discovered on Saturday, April 24, that the underwater "riser" structure
that connects the rig with the well was damaged and oil was leaking into the ocean. Because of
this damage, the scientists estimated that 1,000 barrels a day were being dumped into the Gulf of
Mexico's ecosystems. And to find the solution to this problem, on Wednesday, April 28, 2010
The U.S. Coast Guard is considering setting fire to the oil to keep some of it from reaching the
sensitive ecological areas on the shores. However, this was a tough decision, as there are pros
and cons to each course of action. Finally, they decided to set fire to a pocket of the oil, but not
on a large scale. On Thursday, April 29, 2010, the oil slick has reached the Mississippi Delta, and
it was so close to New Orleans that many local residents reported that they could smell the oil.
As time went by, the data became more accurate on Saturday, May 1st, 2010