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Canadian tar sands are being used as an energy source, but it is a lot harder, and thus more expensive, to derive oil from the tar sands than to drill it direct from the ground. At the current price of oil, however, it make economic sense to do so.

The Canadian Oil Sands are the largest deposit of recoverable oil in the Western Hemisphere but oil needs to be above $60 a barrel for it to be economically feasible. With oil prices only being above the $60 a barrel for the last 2 years or so, companies are only now moving into develop the sands. Unfortunately, the oil discovery and extraction process for the sands is a slow capital intensive process that will require more time to be fully be online. For a look at who is developing the oil sands, you might look at http://www.canadianoilsand.org. They have a number of articles on the oil sands.

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