If the price of oil rises to a certain level,-- at what point does it become economically to open up the Athabascan tar sands and/or tap undersea methane hydrates - neither of which is desirable in my mind, in view of the carbon and environmental impact. OR are there technological barriers to these that I am not aware of.My understanding is that right now the tar sands are economically viable as the cost to produce the tar sands oil is lower than the current world price for oil.
However for the long term, it's more than the dollars and cents you have to take into account.
Read up about EROEI - energy returned on energy invested, basically a comparison of how much energy you get back from the oil you extracted compared to the amount of energy you invest in extracting the oil in the first place. For conventional land based oil wells where production has not peaked, the EROEI is as much as 100 to 1, i.e. you invest the energy of 1 barrel of oil to find and develop the well and get back 100 barrels' worth of energy to use to find and develop more oil as well as to burn as you wish fueling jet airplanes, trucks, cars, power plants etc.
As oil gets harder to find and oil exploration and recovery takes place in more inhospitable and isolated locations the EROEI decreases.
Today I've seen figures indicating the overall average of EROEI for all oil is around an EROEI of 10 to 1 (vs something like 50 to 1 in the mid 20th century). The EROEI of tar sands oil is generally acknowledged to be about 1.5 to 1 which is extremely low compared to oil from traditional oil sources (not to mention the costs of the attendant pollution and the use of valuable water and increasingly scarce natural gas resources in the extraction process). What are the implications of a low EROEI? For one thing developing tar sands oil is viable today because it is being subsidized in a way by the vast amounts of energy our economies are still getting from relatively high EROEI traditional oil sources. After peak and those sources start to dry up and diminish the picture is likely to change.
energy economics and fossil fuels—
how long do we have?
a briefing document <snip>
When an energy source that has an EROEI ratio of 4:1 is replaced with another, alternative, energy source which has an EROEI ratio of 2:1, twice as much gross energy has to be produced in order to reap the same net quantity of resulting usable energy.
This can be worse than it looks. Consider that I inherited one barrel of oil, and the EROEI was 4:1. I could use my one barrel and end up with four barrels. Now consider that the EROEI was 2:1, and I still wanted four barrels. Well, I can use my one barrel to extract two barrels, then I have to use those two barrels to extract the four barrels that I want. Thus with an EROEI of 2:1, it has cost me three barrels to gain four; whereas with an EROEI of 4:1, it only cost me one barrel.
This means that when a society moves to using energy sources that have lower EROEIs, the actual amount of energy available to use (for manufacturing, transport, heating etc.) inevitably will diminish.
http://www.abelard.org/briefings/energy-economics.asp#eroei More information also available on another site here:
http://www.eroei.com/the_chain/economics.html