Tier 2 Spill

AAA

DEFINITION of 'Tier 2 Spill'

The second of the three types of oil spills as categorized by the International Petroleum Industry Environmental Conservation Association (IPIECA). A Tier 2 spill is larger than a Tier 1 spill, but is still one that occurs in the area of the producing company's facilities. Tier 2 spills usually require the aid of other companies and resources, including the government.

INVESTOPEDIA EXPLAINS 'Tier 2 Spill'

The IPIECA has defined the three tiers according to various characteristics. Oil companies may join a co-op with other companies to pool their Tier 1 resources to fight Tier 2 spills. They may go in with other companies to purchase equipment to this end.

RELATED TERMS
  1. BP Oil Spill

    A 2010 oil spill that occurred in the Gulf of Mexico as a result ...
  2. Oil Pollution Act Of 1990

    A law that caps civil liability for oil spills caused by tankers ...
  3. Tier 1 Spill

    One of the three categorized levels of oil spills. Tier 1 spills ...
  4. Tier 3 Spill

    One of the three levels of oil spills as categorized by the International ...
  5. Commodity

    1. A basic good used in commerce that is interchangeable with ...
  6. Sweet Crude

    A type of oil that meets certain content requirements, including ...
Related Articles
  1. Investing Basics

    Oil: A Big Investment With Big Tax Breaks

    Oil and gas investments can provide unmatched deduction potential for accredited investors.
  2. Active Trading

    Oil And Gas Industry Primer

    Before jumping into this hot sector, learn how these companies make their money.
  3. Active Trading

    Uncovering Oil And Gas Futures

    Find out how to stay on top of data reports that could cause volatility in oil and gas markets.
  4. Mutual Funds & ETFs

    Investing In Oil And Gas UITs

    Unit investment trusts provide direct exposure to the energy sector, fueling better returns.
  5. Fundamental Analysis

    Accounting For Differences In Oil And Gas Accounting

    How a company accounts for its expenses affects how its net income and cash flow numbers are reported.
  6. Chart Advisor

    These Oil Service Stocks Are Ready For A Move Higher

    In the oil services sector, active traders have been trying hard to establish a floor and the double bottom pattern that is appearing on the chart suggests that a short-term reversal could be ...
  7. Economics

    Why The Russian Economy Rises and Falls With Oil

    The Russian economy depends on profitable oil production to pay for the cost of government, prop up the ruble, and provide most of it exports revenue.
  8. Economics

    How Oil Prices Impact the U.S. Economy

    Now that the United States has increased oil production through shale oil and fracking, low oil prices can harm the U.S. oil industry and its workers.
  9. Mutual Funds & ETFs

    Take Advantage of Cheap Oil, Invest in these ETFs

    With crude oil prices at record lows, investors should consider oil ETFs over oil company stocks as ETFs more closely mirror the price of oil
  10. Investing

    Countries Near Economic Collapse

    These four countries are nearing economic collapse.

You May Also Like

Hot Definitions
  1. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  2. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
  3. Preference Shares

    Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a ...
  4. Accrued Interest

    1. A term used to describe an accrual accounting method when interest that is either payable or receivable has been recognized, ...
  5. Absorption Costing

    A managerial accounting cost method of expensing all costs associated with manufacturing a particular product. Absorption ...
  6. Currency Carry Trade

    A strategy in which an investor sells a certain currency with a relatively low interest rate and uses the funds to purchase ...
Trading Center