Saturday, May 24, 2008

Carbon Tax: Target the Oil Companies

Canada gets less out of its oil resources then pretty much any other oil producing nation. A carbon tax can help change that. “A Bank of Kuwait report released in mid-2006 said that the break-even point for a Canadian oilsands producer on a barrel of crude oil is US$33. " Oil is now $132 a barrel. The oil sands are responsible for much of the increase in green house gases over the last 15 years and the oil sands are environmental embarrassment. I, for one, am content to let production continue, but it is time the companies pay the Federal piper and in a big way.


wilson said...

Was listening to some dude from CAPS yesterday (Canadian numbers, not foreigners reporting), he said the breakeven on the oilsands is $90 pb. and the profit is being reinvested, going into research for alternative energy sources, and new oil finds.

Conventional oil is much cheaper to get from the ground to the refinery. After the NEP, the break even was around $12, by 2005 (if I remember correctly) breakeven was $20.
The profits again, go into exploration. looking for new finds, lots of dry wells in the process.

Koby said...

The guy was selling a bill a goods. The oil companies have been making a ton of money for years and have be rapidly expanding production in the oil sands for years and the price of all has not been at $90 (in real dollars) since 1980.

"The profits again, go into exploration."

yeah elsewhere in the world.