No surprise to me. They are largely responsible for Canada's failure to comply with the Kyoto protocol they signed. It takes large amounts of natural gas and water to prepare the oil sands into a form of heavy crude oil that can be piped to the U.S. for refining. But it doesn't mean the oil sands aren't going to be used. New production will probably be put on hold until prices get back above $60/barrel (current prices aren't profitable for the oil sands). But they will be used. Right now the Chicago market gets its gas from that crude via refineries in Indiana. Something like 20% of the nation's oil goes thru Minnesota, between Canada and midwest refineries.
A Canadian that supports the continuing folly in the tar sands can't call themselves green! Quite frankly, getting the government(s) to give up on this boondoggling cash cow is going to be difficult. On the other hand, they can't make money on $40 bbl oil, so maybe they'll get wise. Icarus
The Alberta tar sands are the largest point source of pollution in North America. And that's saying something. Of course, the costs of all that pollution aren't figured in to the 'profitablity' equation, and the picture wouldn't be so rosy for investors if it were. Part of what took so long with the development was waiting for the price of oil to go up to the point where production was seen as a money-maker. Now that oil prices have dropped, further expansion and development are on hold. Maybe before it's started up again, we might look at the full cost picture.
