Canadian oil sands valued at $1.5 trillion

OTTAWA, Nov. 10 (UPI) -- Canada's oil sands are arguably worth nearly $1.5 trillion, or more than four times the official estimate, a think tank said Monday.

The Canadian Center for the Study of Living Standards placed that value on the energy source despite the recent drop in world oil prices, Canwest news service reported.

The official assessment by Statistics Canada is just $342 billion. But the center says the federal agency underestimates the amount of oil the sands contain.

"Given the oil sands importance, it is essential to value them appropriately," the report said, adding the agency should review its methodology.

The center contends the Statistics Canada estimate of 22 billion barrels, is "very small compared to those obtained using more appropriate definitions." The center maintains the true amount is 173 billion barrels.

The Ottawa research firm does note there is a cost to be born exploiting the oil sands -- social and environmental costs from resulting greenhouse gases of it pegs at $69.4 billion.