© AAP: Dave HuntThe spill is blanketing the once pristine south-east Queensland coastline
Premier Anna Bligh has declared Moreton Island, Bribie Island and parts of the Sunshine Coast as disaster zones.
Ms Bligh told AAP the amount of oil that had leaked was a lot more than the original 30-tonne estimate.
"It may well be the worst environmental disaster Queensland has ever seen," Premier Bligh said.
"We know that the ship was capable of carrying 100 tonnes so it could be anywhere between 30 and 100, but it is certainly significantly more than the 30."
© AAPA digger works on an oil slick on Queensland's Sunshine Coast
Beaches are blanketed with oil from the Hong Kong flagged ship Pacific Adventurer as a massive clean-up is under way.
The reason why the ship was out in cyclonic seas would be the subject of a full investigation, Ms Bligh said.
"If there is any grounds for prosecution of this ship and its owners we will not hesitate to take that action.
"We will also be pursuing them for compensation as this is going to be a very big clean-up cost and I want those ship owners to be paying for it."
© AAPOil washes up on Queensland beaches
The national response team is a team of experts brought in from other states who would assist and relieve those already cleaning up the spill, she said.
Moreton Bay councillor Allan Sutherland, who has inspected the northern end of Bribie Island, told ABC Radio the oil had dispersed overnight thanks to high tides.
"A lot of the sand that has been pulled from the dunes with the high tides is helping disperse the oil so mother nature is on our side at the moment," he said.
The cargo ship also lost about 620 tonnes of ammonium nitrate overboard.
The full extent of wildlife affected by the spill was yet to be realised, Environmental Protection Agency spokesman Clive Cook told ABC Radio on Thursday.
"The flow-on effects of oil spills can be substantive," he said.
"The longer-term impacts are yet to be realised."
So far seven pelicans, one turtle and a few other birds had been found covered with oil, but there would be more to come, he said.
First the sharks start biting people like crazy, then the cyclone that goes way too far south - now the oil and chemical spill.
All right here in the sunny Queensland!
This is so big and nasty that little can be done right now - I don't think anyone knows what to do... There is so much of it and it's highly toxic...
The oil is a nasty variety that is carcinogenic and one that melts soles off people's shoes. Really - despite the upcoming state elections.
Swimmers all along the coast are reporting burning and itchy skin after swimming in the ocean. Probably, because they are getting poisoned.
The volunteers that actually want to clean up this mess are being held back due to health concerns. Some workers are getting full body suits. This is crazy.
The article above talks about 100 tons of oil - latest news reports say that about 100,000 litres actually got dumped on our beaches.
Far out!