Quote:
Originally Posted by GGG
But where does the replacement oil / energy come from?
At some point due to inelastic demand and poor short term (25 year) substitutions the price of oil will just rise to offset the cost of shipping or they will expand heavy oil production in Russia, Saudi, Kuwait and Venezaula rather than Canada.
I dont see how the EPA can credibly say that the worldwide emmissions due to oil would change as a result of keystone
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Well, new supply is not as emission intensive as some oilsands oil. The Bakken shale for example, boosted by increased prices from restrained WCS imports, would see its production increase, as with tight oil reserves in California. Tight oil is estimated to be about 10% less GHG intensive than SAGD.
So you could very credibly say that marginally increasing prices would lead to less GHG intensive new production.