The worst oil spill in U.S.history indeed. And a shame to be caused by an oil company considered as one of the world’s largest. The Gulf of Mexico had been spewing oil for weeks now and Gulf residents are hanging on for hopes that BP’s complicated “top kill” operation will plug the gushing well. It will take a while before we know how much the oil spill is going to cost in terms of total economic damages, but it definitely would be a lot higher than the $75 million liability cap set by the 1990 Oil Pollution Act and could even be higher than the additional $1 billion provided through the Oil Spill Liability Trust Fund. BP has said it will pay all legitimate claims beyond the $75 million limit yet politicians are understandably skeptical and want their promise be put in writing – - – better be.

Repairing a one-mile deep leak is a tasky responsibility requiring special equipment and skills – - – and lots of money. Cleaning up the oil floating all over the ocean surface is another equally important matter that needs to taken into quick account. Needless to say, it had angered the residents, caused people to get sick, marine life to perish and the government billions of dollars trying to pacify the catastrophe.

Oil Spilling Further than Where Expected

Disasters like these, when affecting the environment, unmistakably affect people’s health. Health environmentalists warned on the prolonged exposure to crude oil and dispersants, directly or in the form of tiny airborne particles. If BP does not successfully plug that leak very soon, public health is definitely on the verge of setting off its alarm signals.

But looks like the gulf catastrophe is spilling on the menus of local restaurants as well. The oil trouble is affecting the seafood markets, local restaurants and other businesses dependent on marine life. Big companies like Red Lobster are hoarding on shrimp and other favored seafood items. It may be difficult for small-scale businesses that do not have the capacity to hoard to get their fair share of oysters, cods, haddock, etc and they cannot absorb the price increase for lack of supply either. With that, grill houses and seafood places might have to start adjusting their menu prices.

More so, the recent crisis is creating uncertainty to the region’s summer tourism. With the oil spill panic lifting, and not all cities of gulf shores not done a great job educating the people about coming down their place for the summer, summer hotspots might be a little quiet this season unless people know for sure how much or if any oil will get to the beaches.

But that’s not all. Every crisis is an opportunity for some. And now, the disaster had caused the birth of Oil Spill Investment Scams. The state Department of Financial Institutions and the Securities & Exchange Commission recently issued a warning statement to investors who may be presented with offers promising financial gains from investments in companies claiming to be involved in the Mexican Gulf cleanup operations. In fact, on May 25, the SEC suspended trading in shares of ACT Clean Technologies Inc. of Huntington Beach, California due to questions about the accuracy and adequacy of certain information the company issued publicly.

Some tell-tale signs of scam companies may be those who claim on owning or developing products or technologies that are effective in remediating oil spills or restoring the eco-system; claiming having contracts or expected contracts with BP to aid the cleanup effort; or perhaps claims that they are providing technical assistance or expertise to BP or to U.S. government agencies on the current matter; promising rapid growth of your investment, and those pressuring investors to put in their money immediately. To avoid being a victim of such scams, though some of these companies may be truly legit, you should investigate before you invest and not rely on the information they give you alone. Remember how easy it is for these companies to make glorified claims about their product effectiveness, lucrative contracts, profits or future stock price. Read the company’s SEC filings and make use of online tools to dig out company information. Suspicious, exaggerated or misleading offers can always be checked against the SEC Office of Investor Education and Advocacy’s records (at www.sec.gov/complaint.shtml). These stuff happens a lot every time disaster strikes, so no matter how eager you want to invest, always practice skepticism.

Full Impact Yet to Unveil

BP was drilling for oil at depths that only recently were impossible. The company may have had solved the puzzle of how to carry out extraction a mile underwater but unfortunately, it neglected to devise a reliable way to cap an unplanned blowout at that depth. On April 20th, for some reason as yet unknown, the pressure in a well that had been drilled by the Deepwater Horizon, a rig that BP was using to explore a new field in the Gulf of Mexico, got out of balance, caused an explosion which claimed the lives of 11 of the rig’s crew. Everyone makes mistakes, huh? So even one of the world’s huge oil companies are allowed to err? – - – a company that tried to drill a hole on the earth’s crust one mile deep than the water’s surface. The size of the outcome their “oh-oh” moment is beyond belief.

Now, Obama is facing criticism here and there on responding too slowly to the environmental catastrophe. Obama is caught in a tight spot as there isn’t much he can do about the giant leak other than put lots of pressure to BP for them to get it right and put his best scientists in the room. But wait, the government has no deep-sea oil technology of its own. So what happens now? Everyone is suffering, directly and indirectly. The oil spill in the Gulf of Mexico might well be the responsibility of BP, could be, but everyone should not let them alone. The problem has rapidly expanded. As the smart folks in charge out there turned out to be not so smart after all, the government is unable to discharge its obligation effectively and now, ordinary people who had nothing to do with the failure are the ones suffering the consequences. With the well continuously spewing its rage, the full impact of the catastrophe in the Gulf of Mexico is yet to unveil. Right now, with no clear understanding of what other economic impacts might turn up from this ugly mess, people are holding on to their pockets while they are holding their breaths as to when those who are supposed to clean up the mess will finally succeed doing so.