Age of Easy Oil is Over

Good analysis by Economist.com (LINK)

According to Francisco Blanch of Merrill Lynch, the rising cost of capital is likely to outweigh all these benefits. Tar-sands schemes, like most oil projects, are very capital-intensive and so very sensitive to changes in financing costs. He believes that higher borrowing charges could push the cost of new tar-sands developments as high as $150 a barrel by 2010. So if demand for oil has started growing again by then, and if tar sands remain the source of marginal production, then the oil price will have to rise back to this summer’s levels to stimulate increased supply. “The age of easy oil”, warns the Emirati minister, “is gone forever.

Canadian Gas Reserves Have Plateaued

I've always contented that Alaskan gas is needed to develop the Canadian tar sands.

This article by WENDY WEIRAUCH, Managing Editor of Hydrocarbon Processing puts the Alaska Gas Pipeline capacity in perspective in terms of how the Alaska Gas will help fill demand as the Canadian fields decline.

Bottom Line: Weirauch compares the Canadian oil reserves to Saudi. Alaskan gas is part of equation to produce that oil.