e hauled to the surface. Local residents were hired by Exxon to help in the cleanup at $16.69 per hour. That wage also attracted a large number of workers from outside the area and in fact, from outside the state. The number of permanent jobs did not increase, but there was a short-term increase in the amount of money available in Valdez and the surrounding areas as a result of the spill. In addition to those who made money working for Exxon directly, there was also a service industry which developed to serve those workers. Even Valdez Hospital, a 15-bed facility, participated in the cleanup effort by treating workers. By September, the hospital faced "the biggest accounts receivable in its history" and found Exxon "seemingly unwilling to pay $250,000 in medical bills" (Taravella, 1989, p. 4).
The long-term economic effects of the spill are more difficult to gauge. Exxon announced in August 1989 that it would spend over $1 billion to clean up the spilled oil. That figure exceeds the company's initial estimate tenfold ("The High Cost..." 1989, p. 40). The one billion dollar figure does not include penalties or lawsuit settlements, which will take years to occur.
The spill was followed by a significant (27 cents per gallon) increase in the price of gasoline. While the spill contributed to that increase, other factors at the time may have had a greater impact on gasoline prices (Nash, 1989, p. A1). These include a low level of oil in California re
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