Should OPEC Worry About Candian Tar Sands?
Zaki Yamani, former Saudi oil minister and an analyst with formidable insight, spoke recently about OPEC’s strategic options. q.v. He foresees that there is not much that can be done to prevent further price declines without production cuts and doubts OPEC will get any real help from the rest of the world’s producing countries on that score. He goes through key OPEC member country finances to show that the effects of a prolonged period below $20 / bbl would cause difficulties. Oddly, he is willing to entertain the possibility that OPEC could be persuaded to believe the US has the option of cutting oil imports up to 80 percent by using a combination of Canadian tar sands and heavy oil. Looks like a four flush to Pete, but Mr.Yamani is always interesting. Ken Ainsworth has sent in the following comment: “To reinforce your skepticism abouth the impact of Canadian tar sands as an alternative to conventional imports, I thought I’d pass on this company’s experience. We have a relatively siza
