[Rodney King]

It is all a matter of price. I believe (off the top of my head) that the Nazi's produced oil at the equivalent rate of $100 per barrel. As I understand it, the cost now would be roughly $65 per barrel. Basically, if the cost comes way down, or the price of oil goes way up, then it will be worthwhile and private industry will produce oil from coal on their own without the need for the government to get involved.

[philosofy123]

We should use our military force in Saudi Arabia to take over that country. Assign a new moderate leadership. This would prevent the usage of the billions of dollars of petrole revenues to fund terrorists.

Once we finished with Saudi Arabia, we need to invade Iran, and install a moderate leadership. Outlaw any political Islamic parties.

[Alberta's Child]

Absolutely correct. Even if the U.S. had all the oil reserves it needs for the next ten million years, it would still import oil from the Middle East if it is cheaper that way.

It was known for years that the tar sands of northern Alberta contained vast oil reserves that probably exceed Saudi Arabia's, but nobody bothered to get it until Suncor developed a relatively inexpensive extraction method back in the 1980s.

[glockmeister40]

I think we could get the costs down a lot less, given the state of current refining technology, compared with WWII Germany.

I think it's good that we exhaust the middle east supply first, then that will leave us a world leader in energy production. It would be great to sell oil to the saudis for $100 a barrel.

[backhoe]

Thanks for looking.... I *was* wondering about the cost of this. I recall a post here around a month or so ago where the Canadians were claiming to have gotten oil-shale extraction costs down to the $12 a barrel range, whereas it had been around $35+ a barrel.

[eno_]

True. It basically means oil can, at worst, triple in price before alternative feedstocks and sources kick in. And if oil shale mining grew to where there were economies of scale, the minimum support price would probably fall to about $40/bbl. But with oil production being cut to try to get to $25/bbl, oil shale will only happen if there is some production cost breakthrough.

Which all goes to show that we will probably be burning oil for 300 more years, at least.