Thoughts on cost overruns in the oil sands will be coming up quickly. Right now, just the (belated) news that the U.S. government has approved the Alberta Clipper, a pipeline that will move crude from Hardisty, Alberta, to Superior, Wisconsin.
So what is the environmental problem? Well, aside from the problems with tailings pools and the like within Alberta, the oil sands release a boatload of carbon. After all, in order to make the stuff you need to inject steam right into the ground. That takes a lot of energy. In other words, you need to burn a lot of stuff in order to get stuff you can burn.
Dealing with that carbon will be Canada's problem. If Waxman-Markey passes, it is quite possible that the U.S. will tax Canadian oil exports. Even if that doesn't happen, the adjustment burden will fall north of the border, unless Canada and the U.S. get together on a combined cap-and-trade system. Unless ... well ... unless both countries decide that it is just more important to have a big and growing share of North American oil consumption produced in North America, with the rents (such as they are) going mostly to the Province of Alberta.
One reason why oil sands project run overbudget below the fold. Full explanation still forthcoming, with the preview that the comment thread pretty much nailed the reasons.
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