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Wildlife
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Oil can cause problems for wildlife in multiple ways. Whether they inhale or swallow the oil, it can harm their health. If it contaminates surface organisms that other creatures consume, then when those animals eat the surface organisms they will also be contaminated. This can continue a long way down the food chain, even going so far as contaminating humans. Naturally, the impact is more substantial on animals closer to the direct consumption, such as birds that may drink the oily water or eat fish that have consumed the oil.
Plants
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Oil exposure can harm plants as well. Mostly seaweeds and algae are affected by oil exposure, which can even cause entire areas of plants to die. While this can be severe, according to the U.S. Fish and Wildlife Service, these plants are usually able to return after the oil has been cleaned up. Algae can actually react in two ways to exposure to oil: it may die off like most plants, but it can also spread.
Fish
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The gills of fish are not capable of coping with oil exposure. Fish also can be poisoned by ingesting the oil whether directly or through contaminated food. Oil exposure can cause deformation in fish. This can mean anything from heart rhythm problems to enlarged organs. As well as being highly toxic to the fish themselves, oil exposure can affect fish's ability to reproduce effectively. Fish also may be indirectly affected by changes in their environment caused by oil.
Birds
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One of the purposes of feathers on birds is to protect them from outside temperatures. This benefit is reduced or altogether eliminated by exposure to oil. They also may drown as a large amount of oil may stop them from flying. The health problems are compounded as the birds try to clean their feathers with their beaks and consume various amounts of oil. This can cause many diseases in the lungs and kidneys as well as potentially choking them instantly.
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Oil Spills & Biological Consequences
How much oil is spilled can affect how severely the biological consequences are felt. Oil floats because it is less dense than water, and spreads in a very thin layer on top of the water. This affects fish and the birds who try to catch them, as well as any other water animals.