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To: Vaquero
it is not cost effective to recover Oil Shale and Tar Sands until the price of oil is over $30 a barrel..

The problem, as I understand it, is that marginal production costs in the middle east are very, very low, at most only a few dollars a barrel. It would take enormous capital to recover this oil and that investment could all be wiped out if OPEC lowered their prices below $30 barrel (or whatever). Mobil lost something like five billion dollars developing this technology, only to see the price of oil collapse in the 80's.

I think taxing petroleum with a "security tax" that simply reflected the huge cost of maintaining a U.S. military presence in the Gulf would go a long way to leveling the playing field.

OK, Kuwait, Qatar, Oman, you like U.S. protection, pay up or we'll make our own oil.

77 posted on 04/21/2005 1:18:43 PM PDT by Lonesome in Massachussets (Deadcheck the embeds first.)
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To: Lonesome in Massachussets

I think what you do is to threaten doing it........you have a deal where the country is backing the tar sands extraction facility....only you just use smoke and mirrors like a chunk of SDI was smoke and mirrors....and they lower the prices again....and that was one of the scenerios that Limbaugh mentioned....


79 posted on 04/21/2005 2:56:40 PM PDT by Vaquero ("an armed society is a polite society "( Robert Heinlien).)
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