Friday, March 18, 2005

Oil at New Ruskin College

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Lecture Notes: 03-03-05

Oil Floor Proposal: Oil price fixed at not lower than: (for example 90% of highest quarterly price: $53 x 90% = $47.70). If OPEC opens the spigot in order to ruin our Synthetic Oil Industry the Federal Government will hold the price and use the windfall to draw down the National Debt. So if OPEC drops the price back to $35 to break the Synthetic Oil price of $47.70 the Federal Government will collect the difference of $12.70 to reduce the $8 trillion National Debt.

By simply opening up its spigots for a few years, Saudi Arabia could, in short order, force a complete write-off of the huge capital investments in Athabasca and Orinoco. Investing billions in tar-sand refineries is risky not because getting oil out of Alberta is especially difficult or expensive, but because getting oil out of Arabia is so easy and cheap --- WSJ

Synthetic Oil Profitable at $35 a Barrel : Market Response Prevented by Unpredictable Policies of Middle East Governments and Lack of Commitment from Washington. Today, with oil prices in excess of $40 per barrel, the Canadian oilsands industry is profitable beyond most investors' expectations. It provides energy, security, and quality jobs. --- Mechhanical Engineering Magazine

Alberta sits atop the biggest petroleum deposit outside the Arabian peninsula - as many as 300 billion recoverable barrels and another trillion-plus barrels that could one day be within reach using new retrieval methods. (By contrast, the entire Middle East holds an estimated 685 billion barrels that are recoverable.)--- Wired

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