Moreover, incentives often favour the worst kinds of
projects. That is the case with the tar sands production, where
royalties are reduced from 25% to 1% (about $1 per barrel) until
the company recovers its capital costs. In addition, companies
pay no federal income tax until the tar sands project has
written off its capital costs.
Newfoundland’s Hibernia offshore oil project will earn $1.5
billion for taxpayers during its life span--less than the amount
the governments of Canada and Newfoundland invested to
support the project.
Daryl wrote:I think the extraction rate from the Colorado shale oil is even worse. So the best we can expect from North American alternative oils is 4 million barrels a day, and that's a decade from now. I guess it's save to assume that demand growth alone with dwarf that supply by then. What's US consumption now, 20M a day?
RacerJace wrote: I promptly pointed out that higher fuel cost raise the cost of extracting oil from tar sands so you are stuck with a positive feedback problem..
Return to North America Discussion
Users browsing this forum: No registered users and 6 guests