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Oil News
Pat gets a helpful no prize for bringing us news that our neighbors up north are doing what they can to get us through this energy crunch.
Meanwhile, Instapundit linked up news of yet another nail in "peak oil's" coffin:
The United States has an oil reserve at least three times that of Saudi Arabia locked in oil-shale deposits beneath federal land in Colorado, Utah and Wyoming, according to a study released yesterday.
The trick, of course, is that it's expensive to get at. However, with prices this high it's apparently quite possible to make a profit on the stuff. Doing so while pleasing the enviro-weenies is another matter.
It costs between $40 and $45 dollars a barrel to process the oil shale and about the same for the oil sands in Canada. Big oil lost it's shirt in the 70's when they dropped a lot of money gearing up for oil shale production and then the prices fell back into the low teens. This tells me that the oil companies see that the prices can't be sustained at these levels for very long and they are expecting them to drop below the $40 mark, otherwise, they would have started shale extraction already.
Posted by: Brass on September 2, 2005 10:27 AMIf we had all the cheap crude oil in the world we wouldn't have the refineries to produce gasoline and such. Lost 7 refineries in the Hurricane plus major damage to a jet fuel pipe line so the airlines are beginning to run out of fuel. This is going to make the aftermath of 9/11 look like small stuff.
Posted by: Pat on September 2, 2005 12:09 PM