They're Canada's environmental disgrace, the oil recovery projects in the Athabasca Tar Sands, and yet the chances of anything being done to effectively clean them up are almost non-existant.
A CIBC report today suggests world oil prices will hit $150 per barrel within five years. Part of this is a tacit acknowledgement of the "peak oil" phenomenon and part is blamed on delays in bringing alternative oil projects such as Tar Sands expansion on line. The report warns Canadians to brace themselves for $1.50/litre pump prices.
Before you start thinking that the answer to all your problems is to dump that SUV for a fuel-efficient compact (although that is a good idea), remember that we're an oil-based economy. Higher oil prices are going to find their way into your wallet at every turn whether you're at an airline ticket counter or the produce aisle in your grocery store or laying in your winter stock of heating oil. Pretty much everything you buy is going to have some form of transportation cost premium worked into the price.
For those already struggling on fixed incomes, life could become a real bitch. Lots of money is going to be made in Canada but our government, by defunding itself through tax cuts, is making sure that there won't be much left lying around for the truly needy. It's a trick they've learned from their American Idols in the White House and Congress.
So, since there'll be no stopping Tar Sands expansion and that bitumen is going to become vastly more profitable, where is all this clean technology Big Oil has been bragging about for years now? How's that carbon sequestration project coming anyway? Harpo's claimed Canada is going to be a "clean" energy superpower. Okay, show us the goods Steve.
Carbon sequestration is turning out to be a bit trickier and more expensive than was once believed and, let's face it, Big Oil isn't going to dip into its Tar Sands profits that far until Ottawa makes them do it and, even then, they can still count on Alberta to run interference for them for years before mandatory cleanup becomes a reality.
Meanwhile, how's that Ford Excursion anyway?
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