Letter Re: Some Good May Come From High Gas Prices
Dear Jim, Believe it or not, I find current oil prices encouraging as well as annoying, but with an undertone of warning. At our current domestic US price, it becomes cost effective to exploit the Canadian tar sands. Canada is next door, civilized, and easy to deal with. Their reserves in that form are probably larger than the entire world’s crude supply. Venezuela has an equal amount, and Chavez can’t live forever. The Canadians have gotten production cost down to $15/barrel, but are not yet producing at full speed. It is obvious, however, that growing technology will improve this, and …