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 FAQS
  1. How can traders use contango to take advantage of the storage shortage for crude ...

    Traders with access to physical oil and storage can make substantial profits in a contango market. Other traders may seek ... Read Full Answer >>
  2. What other precious metals are there beyond gold and silver?

    Besides gold and silver, the other precious metals are platinum, palladium, ruthenium, rhodium, osmium, rhenium, germanium, ... Read Full Answer >>
  3. What countries have the largest gold reserves?

    The United States holds the largest stockpile of gold reserves in the world by a considerable margin. In fact, the U.S. government ... Read Full Answer >>
  4. What commodities are not tradable?

    As of February 2015, commodities that are not tradable include diamonds, tomatoes, carbon dioxide, lemons, eggs, potatoes, ... Read Full Answer >>
  5. How does the price of oil affect Venezuela's economy?

    The price of oil is one of the most heavily watched trends in economics, as it has an effect on the economies of every nation ... Read Full Answer >>
  6. What are the main benchmarks for tracking the performance of the metals and mining ...

    Benchmarks serve as initial points of reference against which portfolios, individual stocks or stock sectors can be compared ... Read Full Answer >>
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

    Watch Out For Falling Copper Prices

    Commodity traders have been turning their attention toward copper prices over the past several weeks.
  7. Options & Futures

    How Long Can Gas Stay Cheap?

    The current gas prices means a lot for the economy and our pockets. Let's explore how long we can expect gas prices to be low, what affects gas prices, and what changes might be in store.
  8. Economics

    Ending The Limits On U.S. Crude Oil Exports

    As US storage capacity reaches its limit, industry participants and their lobby groups in Washington are calling for an end to the crude oil exports ban.
  9. Fundamental Analysis

    4 Oil Penny Stocks to Watch ... Just Be Patient

    If these four penny oil stocks survive the worst of times, they will present bargain basement prices with massive upside potential.
  10. Mutual Funds & ETFs

    Prospects of Gold ETFs GDX vs. GDXJ

    Eyeing gold? A comparison of the prospects of the Market Vectors Gold Miners and Market Vectors Junior Gold Miners ETFs.

You May Also Like

Hot Definitions
  1. Venture-Capital-Backed IPO

    The selling to the public of shares in a company that has previously been funded primarily by private investors. The alternative ...
  2. Merger Arbitrage

    A hedge fund strategy in which the stocks of two merging companies are simultaneously bought and sold to create a riskless ...
  3. Market Failure

    An economic term that encompasses a situation where, in any given market, the quantity of a product demanded by consumers ...
  4. Unsystematic Risk

    Company or industry specific risk that is inherent in each investment. The amount of unsystematic risk can be reduced through ...
  5. Security Market Line - SML

    A line that graphs the systematic, or market, risk versus return of the whole market at a certain time and shows all risky ...
  6. Tangible Net Worth

    A measure of the physical worth of a company, which does not include any value derived from intangible assets such as copyrights, ...
Trading Center