Oil alternatives still make economic sense

10/24/2006

U.S. Dept. of Energy
Last update: October 23, 2006 – 8:18 PM

The price of oil continues to fall, but crude would have to go much lower before some of the main alternatives become unable to pay their own way. Below are the prices oil must fetch for these alternatives to make economic sense.

Tar sands: $15 a barrel

Ethanol: $30 to $35 a barrel*

Coal conversion to diesel fuel: $35 a barrel

Oil shale: $40 a barrel

*Figure does not include the value of government subsidies to ethanol producers.

Source: U.S. Department of Energy